The appreciation after the adoption of the euro has an immediate effect, but it is very small. The major changes in price levels are related to the policies pursued in the respective member states. If the Bulgarian cabinets pursue stupid and risky policies from now on, citizens will suffer - recession and unemployment are possible, but this has nothing to do with the euro itself. This was said by the chief economist at the Institute for Market Economics Lachezar Bogdanov in the “Interview in NOVA News”.
He defined the Law on the Adoption of the Euro as a roadmap on the way to introducing the single currency.
"Regarding the degree of economic convergence, the countries of Eastern Europe, excluding Slovenia and Estonia, were in our situation. The Bulgarian banking system is more ready than those of the countries that adopted the euro 10-15 years ago. The share of non-cash payments in our country is very high - and this means that you don't have to do anything if your money is in a bank. If a government is fiscally irresponsible, allows large budget deficits and a sharp increase in pensions and wages, without economic growth behind it, then there is inflationary pressure. However, this has no direct connection with the currency," Bogdanov explained.
According to him, among the indirect benefits of adopting the euro is better visibility on the capital market. "It is also related to more investment - which leads to better-paid jobs, as well as reduced political risk," the economist added.