The Economic and Social Council (ESC) has expressed strong support for Bulgaria’s accession to the eurozone and called for the process to be expedited. A resolution adopted during the ESC plenary session on February 24 stresses the need for the government to act swiftly by requesting an extraordinary convergence report from the European Central Bank (ECB) and the European Commission (EC) until the end of February. According to the ESC, the current moment is favorable, as Bulgaria has reached a high level of readiness for the euro’s introduction.
The ESC reiterated its stance that Bulgaria should join the eurozone on January 1, 2026. The consultative body warned that any delays could negatively impact the country’s economic development, businesses, workers and society. It emphasized that delaying Bulgaria’s membership would present a harmful scenario for the nation’s growth.
Among the benefits highlighted by the ESC are the acceleration of Bulgaria’s economic indicators after joining the eurozone. Membership would lead to higher income growth for workers, improvements in the business environment, low long-term interest rates and the elimination of transaction costs. Additionally, it would help reduce currency risks for businesses, raise Bulgaria’s credit rating and strengthen fiscal discipline. The ESC also pointed to enhanced investment activity, increased efficiency and innovation in Bulgarian companies and better access to financing for scientific research and high-tech sectors. Furthermore, the introduction of the euro would reduce the shadow economy, improve tax collection and facilitate the financing of large energy projects.
The ESC also stressed that Bulgaria would benefit from participating in the decision-making processes within the eurozone. Other advantages include greater financial stability, a crisis prevention mechanism, stabilized inflation, enhanced price transparency and strengthened international trade. Additionally, the process would encourage increased tourist flows, improve the quality of life, reduce income inequalities and boost financial literacy across the population. Cross-border labor mobility would also be facilitated.
The ESC condemned recent acts of vandalism and hatred, particularly the events in Sofia on February 22. It called on state institutions and media to actively counter disinformation campaigns, stressing that concerns about inflation spikes due to the euro adoption were largely unfounded. The ESC referred to studies suggesting that the effect on overall inflation would be minimal, ranging from 0.1% to 0.3%. In the short term, the most significant inflation impact would come from price speculation on goods with inelastic demand. The council emphasized the crucial role of control bodies in managing such potential issues.
The ESC’s resolution also reaffirmed that Bulgaria would adopt the euro at a fixed exchange rate of 1.95583 levs for 1 euro, as decided by the National Assembly on October 27, 2022. The council further argued that Bulgaria’s accession to the eurozone would not bring instability to the Economic and Monetary Union, referencing projections by Finance Minister Temenuzhka Petkova regarding the country’s deficit.
The ESC expressed concern that delays in the eurozone accession process could fuel skepticism and disinformation about the benefits of membership. The development of the resolution was handled by the Council of Presidents, with contributions from ESC vice-presidents Milena Angelova, Plamen Dimitrov and Bogomil Nikolov, as well as external experts Dobrin Ivanov and Petar Mishev. (Novinite)