What’s next for Bulgaria with the euro – deadlines and important dates

When the EU Council decided that Croatia would become the 20th member state of the eurozone, the leading rating agencies raised their assessment of the country by two steps. So this will probably be one of the consequences for Bulgaria in the coming weeks – the country has a chance to end up with an investment grade A rating for the first time. This means more favorable conditions for financing the government and business.

One of the urgent tasks for all traders will be to ensure the dual indication of prices for goods and services offered. By law, they must begin to be displayed in both levs and euros one month after the date of entry into force of the Decision on the adoption of the euro. That is, on August 8, all prices will already have to be in both currencies.

The work of the institutions from now on will be to ensure a smooth and smooth transition to the euro, by first ensuring that they conduct an explanatory campaign for people and businesses about the changes related to joining the eurozone, including the consequences for everyday life, the benefits and the challenges.

By the end of November, people and businesses will be able to buy starter packs from commercial banks, with which they can start the new year with available amounts of euros – banknotes and coins. For citizens, the BNB plans to produce 1 million packs with the equivalent of 20 leva. For businesses, it is planned to produce 20 thousand packs with coins and banknotes equal to 100 euros. This was commented on by “Dnevnik”, referring to representatives of the European Commission, engaged in Bulgaria’s preparation for the adoption of the euro. The packs will be available for collection from commercial banks. The minting of Bulgarian euro coins will begin as early as this week, said BNB Governor Dimitar Radev.

This fall, the government will have to prepare its first budget in euros. And its task will not be simply to convert amounts from one currency to another, but to present a fiscal framework that convincingly demonstrates political awareness and a desire to control spending. Because the eurozone will provide even easier access to financing, and this, instead of reducing, will even increase the appetite for wasteful policies and rapid indebtedness. In fact, closer coordination of national budgetary policies is the obligation of each eurozone member and every year in October they are obliged to present their draft budgetary plans for the following year to the Commission for assessment.

Otherwise, Bulgaria will join the eurozone in good condition – with a growing economy (3.1% in the first quarter), increasing incomes (their growth is still double-digit), record low unemployment (below 4%) and low levels of government debt (below 30% of GDP). This is not a reason to calm down. The country remains last in the EU in terms of GDP per capita – 66% of the EU average. And what would accelerate our economic convergence with the core of Europe from now on would be the better quality of the institutions’ work: from a reliable judicial system, through minimal bureaucracy and corruption, to fewer populists in parliament.

*Text updated on July 8 after the vote in the EP and ECOFIN

For an easier transition of your systems to the euro, you can contact FTS Bulgaria for more information. Contact us today.

Source: Capital

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