Ambassador: Estonia Paves Way for Bulgaria's 2014 Euro Adoption

Estonian Ambassador in Sofia Rein Oidekivi believes his country has paved the way for Bulgaria to join the Euro Area in 2014. Photo by BGNES

As a country with a currency board, Estonia has set an example of how Bulgaria should go about joining the euro zone, according to Estonian Ambassador in Sofia, Rein Oidekivi.

“I am sure that Bulgaria will become a ERM II member soon, and I hope that we will be able to welcome it in the euro zone in 2014,” Ambassador Oidekivi has stated as cited by BGNES, a day after the euro zone finance ministers approved Estonia’s bid to become the 17th state to adopt the euro as of January 1, 2011.

He has pointed out that Estonia is the first EU member states going from a currency board to adopting the single European currency.

“The currency board can be a very efficient tool for adopting the euro, and Bulgaria can learn from Estonia’s example,” declared Oidekivi while also expressing his country’s optimism about the future of the Euro Area.

He has pointed out that since 1992 Estonia had had a currency board very similar to Bulgaria’s. Not unlike the Bulgarian lev, the Estonian kroon was first pegged to the deutsche mark and then to the euro. Bulgaria introduced a currency peg in 1998.

“Our parliament and government are putting a lot of effort into avoiding high inflation when we join the Euro Area. Usually, post-accession inflation ranges between 0.2-0.5% but can be higher in some countries depending on preliminary preparation. I expect an inflation increase of 0.5-1% in Estonia after we join the euro zone,” said His Excellency.

“It seems that the European Commission and all euro zone members support us in our efforts to join the Euro Area. Estonia has met all criteria for the adoption of the euro shortly after we joined the EU in 2004 so we have finally achieved this goal of ours as well,” explained the Estonian Ambassador in Sofia.

The final approval for Estonia’s euro zone accession as of January 1, 2011, has to be confirmed by the EU heads of government at the upcoming EU Council summit on June 17-18, and to be sealed in July after consultations with the European Parliament.

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