Will there be an increase in inflation after the adoption of the euro. The answers to these questions – by Yordan Barzakov in the column “The Euro – questions and answers” in "Your Day" on NOVA NEWS.
There is no reason for the transition from one currency to another to create inflation. Historically, in all countries after the adoption of the euro there is inflation, it is in the amount of 0.3 to 3%. Inflation is temporary, after which the situation normalizes.
The debt crisis in Greece was not caused by inflation, but by the short-sighted decisions of politicians who gave the ECB wrong information about the level of their debt to the gross domestic product – over 200%. The markets began to punish Greece by giving it higher interest rates and it stopped being able to pay its debts.
If Greece were not in the eurozone, it would have gone bankrupt.
Bulgaria will participate in the so-called European Stability Mechanism, in which it will pay an initial contribution of 900 million euros.
If a severe financial crisis occurs that almost bankrupts another country, Bulgaria will become a co-investor in this mechanism, through which the entire eurozone will withdraw debt. Bulgaria's share of this debt will be a maximum of about 7 billion euros, but it will be repaid with interest.
“Nobody will save France with the money of Bulgarians and their deposits”, Barzakov stressed.