Bulgaria’s Move to the Eurozone
Bulgaria is set to make a significant change to its monetary policy in 2026. As of January 1, 2026, the country will be ending its currency board and instead, will follow the monetary policy of the European Central Bank (ECB). This change was announced by Lyubomir Karimansky, a member of the Bulgarian National Bank (BNB) Governing Council, during an interview on Bulgarian National Television.
What This Means for Bulgaria
Karimansky stressed that Bulgaria will have a say in the ECB, allowing the country to influence monetary policy decisions in the euro area. The BNB Governor will participate in voting, giving Bulgaria a chance to defend its position and opinions on matters that affect monetary policy. This is a significant step forward for Bulgaria, as it will have more control over its monetary policy.
Preparing for the Change
The BNB is preparing for the transition by procuring the necessary quantities of euro banknotes. Karimansky assured that the people of Bulgaria should not worry about this change, as the BNB has everything under control. He also emphasized that the euro should be seen as a tool, not a solution to all of Bulgaria’s economic problems. The more important issue, according to Karimansky, is maintaining fiscal discipline.
Challenges Ahead
Karimansky expressed doubts that this year’s budget could be implemented within its set parameters. He also pointed out that there is ambiguity about the Government’s priorities now that the eurozone accession target has been met. This ambiguity could lead to challenges in implementing the budget and achieving the country’s economic goals.
Concerns About the EU’s Policy
Karimansky also expressed concerns about the European Union’s policy towards armaments. He believes that redirecting spending towards armaments at the expense of other important sectors, such as agriculture, is worrying. According to Karimansky, spending on armaments reduces the possibility of investing in real assets, as "weapons do not lead to the production of wealth".
Conclusion
In conclusion, Bulgaria’s move to the eurozone is a significant change that will give the country more control over its monetary policy. While there are challenges ahead, the BNB is preparing for the transition and is confident that it will be a success. However, concerns about the EU’s policy towards armaments and the ambiguity about the Government’s priorities need to be addressed to ensure a smooth transition and a strong economy.
