Bulgaria C-Bank Deputy Governor Plays Down Euro-Plus 'Blunder'

Bulgaria's central bank deputy governor has defended the prime minister for deciding to back the Berlin-inspired project "euro-plus pact", a move harshly criticized by the opposition and local experts.

"From an economic point of view, now was not the right time to join the pact. Prime Minister [Boyko Borisov] however has more reasons for this step than just that. He is not taking into account just the economic benefits, but how the country is viewed across Europe," Kalin Hristov said in an interview for Trud Daily.

According to him Bulgaria could have lost part of its clout if it had refused to join the project, which will prompt countries to further coordinate their economic policies.

"This is a strong argument – if you are not in, you can not take part in the discussion. The prime minister has taken into account all the economic and political gains and has taken a decision on behalf of the whole country," Hristov explained.

The decision came despite the opposition of the Finance Ministry and the central bank, which feared part of the pact, such as tax harmonization, may not be in the interest of Bulgaria.

Local experts have also poured cold water on Borisov's enthusias, saying the pact is real burden for the poorer EU member states, including Bulgaria, and will significantly decrease its incentives to join the eurozone.

According to them Bulgaria is just trying to play the good pupil, but has failed to secure guarantees for its benefits.