Employers: “The battle for Bulgaria” is now, business is not afraid of the euro (video)
I call the period we are in the “Battle for Bulgaria”. This is modeled after the Battle of Britain during World War II. Such is the situation regarding the entry of our country into the Eurozone Yevgeny Ivanov, executive director and member of the Board of KRIB. He participated in the event organized by Dir.bg, 3eNews, KRIB and the Agency for Small and Medium Enterprises financial conference “Bulgaria in the Eurozone – advantages and opportunities”.
According to Ivanov, Bulgaria is currently a member of the Eurozone with one foot as “I hold the stick, but we are not reaching the carrots”. “How can we make a monetary policy when we are not part of the Eurozone. How can we have a policy for the rich when there are restrictions from the side of the Currency Board?” Ivanov asked the audience rhetorically.
KRIB is categorical that there is no business that does not want to be part of this European club. Only gray business would not want to participate, and here the role of the state is to do its job to support public finances, Ivanov was categorical. According to him, it is now important to carry out a proper information campaign among people, thanks to which people can be convinced of the benefits of adopting the euro.
In the mineral industry, we have been preparing for the Eurozone for a long time. We have been paying our counterparties in euros for a long time. Because of this, our industry is ready to switch to the euro. This message Nikolai Vulkanov, Chairman of the Board of Directors of “Mintpoi Holding” JSC and the President of the Bulgarian Mining and Geological Association. He also took part in the financial conference organized by Dir.bg, KRIB and the Agency for Special Small and Medium Enterprises.
Even now, every company and citizen can pay in this currency. The euro has a fixed exchange rate and we are not afraid, commented Vulkanov to the audience. According to him, our country has no problem entering the Eurozone and the whole country is ready as long as the budget deficit issue is resolved.
Income growth
The Eurozone will lead to a boost in incomes, commented the presidents of the Central Bank of Ukraine Plamen Dimitrov. The largest insurances of the people, because even now the incomes are not 52% of the European average. That is why the opinion of the trade unions can be in this debate is so important, because they more or less reflect the opinion of the workers in Bulgaria. Eurostat data shows an average 0.3 percentage point increase in inflation on average now since accession. If I tell people that there will be no inflation, it will not be true, for some goods it will be greater, especially for faster-moving goods, the trade unionist believes. Coffee and mineral water will become more expensive. But in all the countries that have joined the Eurozone, there is serious development and growth in incomes. This is especially true for two of the Baltic states, which were also part of Bulgaria’s currency board.
If we continue to think whether we are ready or not for the Eurozone, we are wasting valuable time. That’s what he said Zornitsa Rusinova, chairman of the Economic and Social Council during the financial conference. She recalled the ISS report on the adoption of the euro. The report analyzes and finds that the risks to inflation and income outweigh the benefits for three important groups in society. The Economic and Social Council represents the consensus opinion of Bulgarian business, Bulgarian workers and civil organizations. Let’s emphasize that there is no risk for the insurance system and pensions, something that is not mentioned, but a large part of people apply, said Rusinova.
According to her, the government should first of all provide a fast track to the administration for the huge technical work that has to be done. Next, an information campaign should be carried out, because the lack of this has led to this huge negativity, Rusinova said.
The recommendation is no longer than is currently in law and has been the practice in other European countries to show both currencies on labeling when you enter the eurozone, she is emphatic. But one more thing is important, that there should be clarity and transparency about the mechanism by which signals should be submitted and to whom.
We already have one foot in the Eurozone
We already have one foot in low banking unions, it’s time to enter the Eurozone with others, comments Petya Dimitrova, CEO of Postbank during the last panel “The Eurozone – increasing income and benefits for business”. We entered the banking union, it is even strange for us that we are even talking about entering the eurozone. The very fact that with one foot we have entered low banking unions and have all the regulations that we have to comply with and we have not entered the Eurozone with the other, we are standing like that is a topic that should not be discussed, but we should go towards achieving y, Dimitrova also said. The very fact that you have the political will to enter the Banking Union means that you must have the political will to enter the Eurozone. At least for banks and the banking business, this is the most logical. According to her, it is init is imperative that you start the technical preparations for our entry into the Eurozone as quickly as possible. INLicking in the Eurozone will be very useful for costs, for business, for society and will bring many benefits not only to the banks, but also to their customers, Dimitrova believes. He gave an example with the fact that the banks fulfill all the requirements of the low banking unions, but cannot use the European Investment Bank as creditors after an instance, which in fact assumes all other risks, Dimitrova added. She emphasizes that the awareness campaigns that are taking place must continue, the government, business and civil organizations must do everything necessary to overcome people’s fears.
Small business has other important problems, the euro does not use it
The joining of our country to the Eurozone will only increase the costs for our economy. This message Boyko Such, executive director of the Executive Agency for Special Small and Medium Enterprises. However, Bulgaria’s entry into the Eurozone is not on the agenda of small and medium-sized enterprises. This does not stand as any threat, because the country is no longer “linked” to the euro in the currency board, and this rate will be maintained even after we enter the eurozone, he pointed out.
He is adamant that the most pressing issues for small businesses at the moment are the loss of personnel and access to financing. It is the investments that are not sustainable at the moment, because the funds from the European funds do not come regularly, but are according to certain programs. A state, purposeful policy in this direction is needed, said Takov categorically. He recalled that small and medium-sized businesses are not only the backbone of our economy, but also these enterprises have an important social role in Bulgarian society.