Former Finance Minister Highlights Challenges to Eurozone Membership, Stating Bulgaria Lacks Necessary Criteria

Simeon Dyankov, a former finance minister, expressed that the Bulgarian economy is performing reasonably well, although discussions regarding the macro framework for 2025 are currently stalled due to the absence of a functioning parliament and government. He noted that finance minister Ludmila Petkova has called on politicians to outline necessary budget measures and determine the deficit. According to Dyankov, Bulgaria has not seen a deficit of this nature in 25 years, and he does not anticipate significant parliamentary debate on the issue.

Dyankov criticized the campaign promises made by politicians, pointing out that 8 billion leva is the outstanding capital expenditure, yet only 4 billion leva of those commitments have been realized. He warned that a 3% deficit poses serious risks and emphasized the importance of discussing progressive taxation, which requires a stable government. While he reassured that Bulgaria is not on the verge of a Greek-style economic crisis, he acknowledged the need for scrutiny over government spending.

He stated that Bulgaria is far from meeting the criteria for Eurozone membership, specifically the inflation threshold, and warned that a 3% deficit could lead to the country being excluded from the Eurozone. He believes that societal readiness for the euro is crucial, and he suspects that politicians may be hesitant about entering the Eurozone. Furthermore, Dyankov commented on the discomfort some politicians feel regarding the conditions tied to the Recovery and Sustainability Plan, predicting that Bulgaria will take out at least two more loans by the end of this year and three additional loans next year.