The euro zone will expand, but with slippage. New date

Currently, in shops in Sofia and Varna you must pay in Bulgarian leva – this is the official currency of Bulgaria. Even though this country has been trying to adopt the euro for years, according to the government, entry into the euro zone will be delayed. In 2015, a resolution was adopted providing for accession to the euro zone in 2024. However, reality has verified this date. The government has prepared a modification which indicates that the new date for adopting the euro will be January 1, 2025. The Minister of Finance said that this date is being discussed and consulted with the European Central Bank, the European Commission and the Eurogroup.

The euro is delayed and this is a problem for Bulgaria

In a Sunday interview for Nova TV, Finance Minister Assen Vasiliev said that the delay is necessary because the government did not request an emergency report that would allow a decision on membership to be made in June this year. There was a political crisis going on at that time, and power from the beginning of the year was held by an interim government appointed by President Rumen Radev. Adopting the euro involves many legislative changes. This delay meant that the European Central Bank (ECB) would not be able to adopt and accept them until the beginning of next year.

Moreover, Bulgaria is expected to have a problem with a budget deficit of 6.4%. In the same interview, Vasiliev also admitted that this delay would significantly weaken the economy. He estimated that losses could range from 500 million to even one billion leva.. And we are only talking about losses related to currency revaluation. Delayed membership in the euro zone is also associated with higher interest rates and lower investments. He calculated that the overall economic impact of Bulgaria’s delayed membership in the euro area and Schengen is between 4 and 5 percent. country’s GDP – quotes his speech.