The Governor of the Central Bank of Greece Yannis Stournaras shared in the "Euro - Questions and Answers" section on Nova TV the lessons from the financial crisis in the country and advice for Bulgaria after its entry into the eurozone.
According to Stournaras, Greece was on the verge of bankruptcy in 2014 and only membership in the eurozone allowed the country to receive rescue loans and recover economically. "The euro is not an autopilot. If you make mistakes at the local level, the currency cannot fix them", he said.
According to him, the benefits of the common currency will be felt immediately by Bulgarian citizens – lower inflation, lower interest rates and easier financing of loans. Small and medium-sized enterprises will save on transaction costs, and consumers will experience a more secure economic climate.
Stournaras stressed that political stability and responsible fiscal policy are key to successful membership in the eurozone. He warned of the risks of populist solutions such as excessive wage and pension increases without accompanying productivity growth, pointing out that the lessons from Greece are applicable everywhere.
“The euro is a force, but it requires discipline - fiscal, financial and institutional. Without them, the poorest suffer the most“, said the governor of the Central Bank of Greece.
Bulgaria, in his opinion, has already covered all the entry criteria and now it is time for the country to benefit from the advantages of the common currency, while maintaining responsible economic policies.