June 4 was a historic day for us. By entering the eurozone, Bulgaria will be safer and more dignified in Europe. We entered the Champions League, but we may be last if we don't do well.
This was stated to Nova TV by economist and former Deputy Prime Minister Atanas Pekanov, quoted by novini.bg.
"The most terrible demands were to get rid of the currency board. In the eurozone, we will now be represented where decisions are made regarding inflation, and so far we have only received them through the ECB. The governors of all banks in the zone meet and decide, regardless of their share of GDP. In the history of the ECB, there have been almost no votes, they rarely come to them - only if a general decision is not immediately reached. Dimitar Radev will participate in its meetings, which are held every 2 weeks, and they decide what the bank's policy will be - for example, whether to raise or lower interest rates. Austria is an example of a small country that manages to impose its vote in the ECB, and its GDP is only 2% of the eurozone", emphasized the former deputy prime minister.
"Poland does not want to be in the eurozone because it believes that it is too big an economy and it is better for it to have an independent monetary policy. However, Bulgaria does not have one, because of the currency board. We have long given up financial sovereignty. We learn from the ECB what interest rates the BNB should apply. Romania does not want the euro because their governor, who has been in power for over 30 years, believes that the country can handle its independent monetary policy," Pekanov commented.
According to him, people with loans will not have an increase in interest rates - over time they may even fall.
"There is no mandatory mechanism by which one country can save another in a debt crisis. If this happens through a loan, the specific country earns money back. Among the economic positives of entering the eurozone are lower transaction costs - you do not pay money for exchange. Interest rates on government debt will be lower, and control over the banking system will be stronger. Everyone is richer than us and seems happy to have entered the eurozone. The best option is to have both currencies for one month, not six or three, because in a shorter time there will be confusion and people will get used to it," said Pekanov.