European Commission: Bulgaria not yet ready to join the eurozone

(Patria) - Bulgaria is still not ready to introduce the single European currency due to too high inflation, the European Commission announced yesterday.

Originally planned for the beginning of this year, the introduction of the euro was postponed after inflation of 9.5 percent was recorded in the southeastern European country last year.

The Commission is operating on the assumption that the inflation rate will fall to 3.1 percent this year compared to last year, according to its May economic forecast.

Countries joining the eurozone must meet the criteria for price stability, public finances, exchange rate stability, and long-term interest rates, which must not be more than two percentage points above the rates in the most stable EU countries in the year before the assessment.

All EU member states, with the exception of Denmark, are legally obliged to join the eurozone. In addition to Bulgaria, the countries yet to join are Poland, Romania, Sweden, the Czech Republic, and Hungary.

The Commission stated that Bulgaria, which joined the EU in 2007, is currently the only country that meets all but one criterion, and in which national legal regulations are compatible with the monetary union.

Membership in the eurozone could be politically challenged in Bulgaria, as the pro-Russian and nationalist Revival Party insists on a referendum on the issue.

The pro-European alliances Citizens for European Development of Bulgaria – Union of Democratic Forces (GERB-SDS) and We Continue the Change – Democratic Bulgaria (PP-DB) are strongly in favor of joining the eurozone.

The Bulgarian National Bank and the Ministry of Finance announced yesterday that the country will meet the eurozone inflation criterion by the end of the year.

The transitional government also confirmed the law on the introduction of the euro, and it will have to be adopted by the new parliament elected on June 9.

Complex discussions are underway in Bulgaria regarding the formation of a new government.