Experts Assert: Euro Introduction in Bulgaria Won't Lead to Price Hikes

Finance | March 27, 2024, Wednesday // 09:31|  views

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As Bulgaria steers towards adopting the euro, economists dispel concerns over potential price increases, assuring the public that the impact on inflation will be minimal. Renowned economists, including Petar Ganev and Preslav Raykov, have weighed in on the matter, emphasizing the stability and positive prospects associated with the currency transition.

In an interview with Nova TV, economist Petar Ganev underscored that the introduction of the euro is unlikely to trigger significant price hikes, with estimations suggesting a marginal increase of only 0.1-0.2%. Financial analyst Preslav Raykov echoed this sentiment, affirming that the purchasing power of Bulgarians will remain unchanged, with anticipated growth in the medium to long term.

The Ministry of Finance's recent publication of the bill pertaining to the euro's adoption provides clarity on the transition process. The bill outlines key changes and timelines for currency conversion, shedding light on the practical aspects of the switch.

Under the proposed plan, Bulgaria will undergo a one-month transition period during which both the euro and the lev will be accepted. Following this period, the lev will be officially phased out, marking a definitive shift to the euro.

Economist Georgi Angelov elucidated that pension rounding during the transition will occur within a narrow margin of one euro cent. Additionally, currency conversion in banks will be facilitated at the official exchange rate, eliminating the need for additional fees.

Preslav Raykov highlighted Croatia's successful euro adoption as a precedent, citing positive economic outcomes and dispelling fears of rampant inflation. Drawing parallels, Raykov expressed optimism regarding Bulgaria's transition to the euro, emphasizing the potential for economic growth and stability.

While acknowledging challenges, such as the one-month dual-currency period, experts remain confident that Bulgaria will meet the inflation criterion for Eurozone accession by year-end, signaling a significant milestone in the country's economic trajectory.

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Tags: euro, Bulgaria, economists, price


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