Bulgarian Economist: Bulgaria puts its Credit Rating at Risk by Postponing Eurozone Membership

Finance | February 18, 2023, Saturday // 11:01|  views


With the decision to postpone its membership in the Eurozone, Bulgaria risks the credibility of its credit rating and sends negative signals to its European partners.” Petar Ganev, senior economist at the Institute for Market Economy, stated this to the Bulgarian National Radio (BNR).

According to him, the decision was expected, since our country missed the opportunity to correct the inflation rate and did not fulfill mandatory commitments.

The fact that Bulgaria is postponing its membership in the Eurozone should not cause concern, because the process has been started and the way is open. The political orientation is important, not the specific date,” comments Petar Ganev.

"The question is whether politically we will still maintain this orientation, as I see that there is a lot of contradictory talk, referendums, signatures are being collected. An official refusal of membership would already have severe consequences."

However, Bulgaria's decision to postpone its accession to the euro sends negative messages to its partners,” says Petar Ganev.

"There is a risk that there will be some different view of our credit rating. Another thing, we are constantly generating negative news – we are not entering Schengen, we are failing with judicial reform, we are postponing the Eurozone. There is no way to interpret news, that the membership of the Eurozone is being postponed because we are not fulfilling inflation, as be a positive signal for investors, partners. This will everywhere be read as something negative and an increased risk for Bulgaria."

Meanwhile, the European Commission told BNR that they welcome Bulgaria's constant ambition to join the Eurozone.

The Commission also announced that European Commissioner Valdis Dombrovskis, who is responsible for the economy in the interest of the people, will visit Sofia on February 23 and 24.

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Tags: Bulgaria, Eurozone, Georgiev, credit rating


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