Bulgaria's Asen Vassilev Warns of Missed Eurozone Opportunity and Fiscal Instability

Former Finance Minister and WCC-DB MP Asen Vassilev highlighted Bulgaria's compliance with Eurozone criteria, noting the country’s inflation rate of 2.6%, well below the 3% threshold. He asserted that Bulgaria is among the EU countries with the lowest inflation and expects this to be confirmed when official data is released in February. Vassilev emphasized that meeting these criteria was achieved under his leadership through managing budgets with a smaller deficit than initially projected.

Vassilev questioned why a deficit is expected in January despite a tax increase, contrasting this with previous years when surpluses were recorded: 400 million leva in January 2021, 940 million in January 2022, 470 million in January 2023, and 400 million in January 2024. He criticized current projections and warned that not requesting a convergence report for Eurozone entry would harm Bulgarian businesses and citizens. According to him, joining the Eurozone would safeguard the country from financial instability, unlike the vulnerabilities faced under the currency board.

Vassilev also expressed concerns about a potential return to austere budgets and criticized actions that could jeopardize Eurozone membership. He stressed that Bulgaria's economic growth, reflected in rising incomes, is a key factor recognized by credit rating agencies.

Martin Dimitrov, WCC-DB MP and member of the parliamentary finance committee, stated that with political will, the deficit could be managed, as demonstrated in the past. He pointed to GERB’s budget rule violations, including salary increases for the Ministry of Internal Affairs, as a significant risk to fiscal discipline. Dimitrov emphasized that during WCC-DB's governance, the 2023 deficit was kept at 2%, paving the way for Eurozone entry. However, he criticized GERB and other parties for failing to support legislative measures essential for the transition to the euro, describing this as deliberate sabotage.

He cited the rejection of an expert bill on the Bulgarian National Bank, which would have advanced Eurozone integration, and the lack of explanation from GERB for their opposition. Dimitrov also mentioned the Insurance Code vote as another instance of resistance to Eurozone reforms, attributing it to political motives that remain unclear.

Journalist Emilia Milcheva commented that GERB has a historic responsibility for Bulgaria's Eurozone accession, noting that the country entered the Eurozone waiting room under Boyko Borissov's third cabinet. She described WCC-DB’s opposition stance as predictable, given their alignment with pro-European policies, contrasting with other political forces that oppose the euro.

Political scientist Stoycho Stoychev underscored the importance of an adopted budget for requesting a convergence report. He also warned that delaying this process risks missing Bulgaria's next opportunity for Eurozone entry, which Dimitrov noted could realistically be January 2026. Dimitrov called recent shifts in government messaging on the issue troubling, emphasizing the urgency of maintaining focus on Eurozone accession amidst complex political and economic challenges.

Sources:

• bTV
• BNR interview
• Novini.bg