Bulgaria’s potential membership in the Eurozone continues to generate mixed messages, influenced by coalition politics and unmet criteria. According to Simeon Dyankov (deputy prime minister and minister of finance from 2009 to 2013), the chance of entering the Eurozone until January 2026 is negligible. Dyankov expressed skepticism that the coalition led by Temenuzhka Petkova could reduce the budget deficit to the required 3%. He believes the earliest realistic date for Bulgaria’s entry into the Eurozone is January 2028.
Dyankov emphasized that a significant increase in salaries within the Ministry of Interior – such as a 50% hike – would make meeting the criteria for Eurozone membership until 2028 impossible. He criticized GERB for what he described as inconsistent messaging on the issue. To achieve membership quickly, he argued, Bulgaria would need to implement sharp cuts in government spending, which would exclude significant salary increases. He stressed the importance of being transparent with the public about the challenges.
Dyankov said the VAT rate for restaurateurs should remain at 20%, as this would generate an additional 500 million leva for the state treasury. For the hotel industry, this figure could reach 1 billion leva, further bolstering government finances.
Former caretaker government minister Atanas Pekanov offered a different perspective. He stated that Bulgaria currently met most of the Eurozone criteria, except for 0.1% inflation above the threshold. He noted that this gap was manageable if inflation trends remained positive and under control. However, Pekanov warned that submitting a convergence report prematurely could result in a negative outcome, delaying Eurozone membership by another two to three years and damaging Bulgaria’s financial credibility on international markets.
Pekanov suggested that Bulgaria had a window of six to eight weeks to request a convergence report to potentially secure membership until January 2026. However, he emphasized that parliament must implement measures to curb inflation and maintain sustainable economic trends. He noted that the current financial situation in Bulgaria, while not catastrophic, requires action. The budget deficit, ranging between 5 and 9 billion leva, can be addressed by reducing capital expenditures and postponing salary increases for civil servants.
Pekanov argued that structural reforms and optimization of state expenditures have long been discussed but remain unaddressed by those in power. He called for political will and pragmatism, urging lawmakers to prioritize economic logic over populism.
He also addressed the importance of reforms linked to EU funds under the Recovery and Resilience Plan. Pekanov highlighted the need for legislative changes, particularly in energy and the rule of law, and urged the government to repeal decisions that hindered progress in these areas. He expressed hope that reason and pragmatism would guide Bulgaria’s efforts toward economic and legislative reform. (Novinite)