Pekanov: Political instability may delay Bulgaria’s move to the Eurozone
Political instability and the lack of a regular policy in Bulgaria can slow Bulgaria down on the way to the Eurozone, commented on Sunday the Deputy Prime Minister of the USA Atanas Pekanov. The planned accession date for the country is currently January 1, 2024. Atanas Pekanov, Finance Minister Rositsa Velkova, together with BNB Governor Dimitar Radev are in Washington for the annual meetings of the Governing Councils of the World Bank and the International Monetary Fund.
“Entering the Eurozone is a very important and strategic goal for Bulgaria. The risks seen in political instability and the absence of parliament could possibly delay this process.”Pekanov told bTV.
Meanwhile, Prof. Jeffrey Nielsena member of the newly created Expert Economic Council pointed out to BNR that the introduction of the euro is a right step for Bulgaria.
Nielsen, who according to the rules of the council announced that he shared his own opinion, added that even at the beginning of the exchange of the Bulgarian lev with the single European currency, if there is a one-time small increase in prices, it will not be harmful. At that time, Bulgaria will have the opportunity to participate in the monetary policy of the European Central Bankwhile at the moment against the currency board follows the only decision ì without affecting their taking:
“I think it’s a good idea. The Bulgarian National Bank should simply follow every move made by the European Central Bank, which really means no monetary policy. “.
SB: Bulgaria can double the potential of its economy through PVA
Pekanov also pointed out that according to expert assessments of the World Bank, if Bulgaria correctly implements the reforms, the ones laid down in the Recovery and Sustainability Plan (RPP) can double the potential of its economy.
“We are not talking to both the International Monetary Fund and the World Bank about what is best applicable to the reforms that are laid out in the Recovery and Resilience Plan.” According to the estimates of the World Bank, if the reforms in the recovery plan are properly implemented, we have the opportunity to double the potential of the Bulgarian economy in the coming years.”said the Deputy Prime Minister.
From his words, it became clear that during the meetings with the World Bank, his team had agreed on several Bulgarian projects under the PVA, that the bank would provide technical assistance to Bulgaria.
The Deputy Prime Minister also highlighted the important reforms and projects that will potentially be followed by the World Bank.
“First of all, this is the reform that concerns energy poverty, but after we define which households are energy poor. Another investment project that is very important is in relation to geothermal energy. This is a resource that is not being used in the best way. Research should be applied to see where the best opportunities for an outcome lie ì. And the recovery plan includes such pilot centers for geothermal energy”said Atanas Pekanov.