BULGARIA NEGOTIATES ON THE INTRODUCTION OF THE EURO AS A PARALLEL CURRENCY

Bulgaria is negotiating with the European Commission and the European Central Bank for the introduction of the euro as a parallel currency in our country. This was announced by Finance Minister Asen Vassilev.

What does this mean?

That until we enter the Eurozone, we will be able to choose, for example, whether to receive salaries in euros or in BGN. As well as natural persons will be able to choose one of the two currencies whether to carry out transactions.

We know that for now the prospect for our country to enter the Eurozone is the beginning of 2025. We are behind due to the non-fulfillment of the inflation criterion, as well as the adoption of the special legislation.

The euro and BGN should be used as a parallel currency and for payments by citizens.

"At the moment, transactions involving individuals such as final sales, salaries, by law are only carried out in BGN. Let's have all the conversations with the ECB and the EC, and if there is a change in the plan for the euro, it will be commented on in due course," said Asen Vasilev, Minister of Finance.

Businesses are positive about the euro, but they are waiting for talks with the finance ministry.

"All the actions that are taken in connection with the faster introduction of the euro are supported by Bulgarian business. It is good that talks are being held with the ECB, but these talks should also be held with Bulgarian business, as there are a number of problems in connection with the organization of production processes, business software and fiscal devices. It is not clear whether they can work in a way to accept payments in two currencies at the same time. If you go to the store, will you be able to pay with BGN 10 and BGN 5 euro at the same time?", said Stanislav Popdonchev, Vice president and CFO of the Bulgarian Industrial Association.

"However, the advantages outweigh the disadvantages, so because we will have easier access to credits, lower interest rates on them, the very transaction costs of the deals, we know that more than half of Bulgaria's trade is in the EU," commented Tsvetan Simeonov, rotating chairman of the AOBE for 2023, and chairman of BCCI.

Employers expect at least six months of preparation before the changes are implemented. Bulgaria meets the criteria for low debt and budget deficit, but still does not meet the inflation requirement, explained the finance minister.

Trade unions insist that everything is coordinated with the ECB and the European Commission.

"There will certainly be some upheaval, but whether it will be now or in the future, there is no way to escape from it, but it is dangerous if we do it on our own," said Dimitar Manolov, president of CL “Podkrepa”.