Bulgarian Deputy PM Pekanov: Adopting Euro Won’t Increase Inflation

Jerusalem, 4 September, 2022 (TPS) -- SOFIA, 04.09.2022 (BTA)
The transition from the Bulgarian Lev to the Euro will not increase inflation further, said caretaker Deputy Prime Minister for EU Funds Management Atanas Pekanov in a Bulgarian National Television interview on Sunday.

Pekanov noted that the Euro is stronger than it was 10 years ago, when adopting it could have brought turmoil. “We don’t have that at the moment. We adopted the measures to calm the markets. Institutionally, the euro is stronger,” Pekanov stressed.

In connection with the bill for the introduction of the euro, the Deputy Prime Minister stated that the caretaker cabinet should work actively on the technical processes.

“Entry into the Eurozone is a political matter that must be decided by a regular cabinet and, accordingly, the previous government submitted the request for this to happen on January 1, 2024. The caretaker cabinet must continue with the procedure and preparations for the introduction of the euro within the specified period, to support a regular cabinet. This includes preparatory measures to protect consumers so that during the transition period no shocks occur,” said Pekanov.

The accession of Bulgaria to the Schengen area is a priority topic for the caretaker cabinet, the Deputy Prime Minister assured. “This week we received many positive signals from the speech of German Chancellor Olaf Scholz in Prague. He said that he thought that Bulgaria, Romania and Croatia have met the criteria and accordingly supported our entry into the Schengen area,” Pekanov explained.

The Deputy Prime Minister stressed that the cabinet is clearly working to address the remaining possible reform needs.

Regarding the transition to the new programming period for European funds, Pekanov said that the funds for the construction of the Struma motorway will not be returned back to the EU. The government is working with the EC to set up a working group to determine the conditions for the transition of funds from one programming period to the next.