Sat, Nov 21 2009

Expert puts unilateral euro adoption back on the table

Tue, Oct 20 2009 10:17 CET byDnevnik.bg 1240 Views 3 Comments
Expert puts unilateral euro adoption back on the table

Photo: Assen Tonev

Bulgaria is on course to meet all euro convergence criteria and if it is not admitted into the (ERM-2) exchange rate mechanism, it should adopt the single currency unilaterally, said Georgi Angelov, an economist with the Open Society Institute.

Speaking at an international discussion on reforms in new EU members on October 19, Angelov said that blocking Bulgaria’s access to ERM 2 , the two-year currency stability test before the country can drop the lev and adopt the euro, would be a violation of Bulgaria’s EU Accession Treaty and would pave the way for unilateral adoption.

Adding to the list of formal Maastricht criteria, Bulgaria was recently unofficially set another requirement  - of assuaging its current account gap before it could seek an ERM entry, according to Angelov.

Several economists approached by Dnevnik sided with Angelov but they only spoke on condition of anonymity. Government officials declined to comment.

Earlier this month, Deputy Prime Minister and Finance Minister Simeon Dyankov said that Bulgaria should apply to join the currency mechanism at the end of January 2010.

Former deputy finance minister Lyubomir Datsov predicted that before giving the green light for an ERM II entry, the European Commission (EC) will wait and see whether the efforts of Bulgaria’s new Government, led by right-of-centre political party GERB, to counter the crisis are bearing any fruit and if pledged reforms are being implemented.

Comments

Anonymous Expat Tue, Nov 03 2009 12:11 CET
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no worries, there is no political will withing EU to enlarge EUR in the near future. the EUR area first has to sit down and analyze what happened during the crises so far, what almost has burst the EUR. the only reason why not happened, was the lack of alternatives

Anonymous Rab Mon, Nov 02 2009 14:01 CET
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Adopt the Euro at your peril, as prices will more than double.

Anonymous hoosiers Tue, Oct 20 2009 19:57 CET
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Whoa, wait for the real inflation to wash over Bulgaria then. The Swiss are smiling that they don't have the Euro and for a good cause.

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