After the adoption of the euro, profits for business and citizens will come from the better status that the second most common currency gives us. Currency risk is eliminated, credit rating increases. There is no way that people can become poorer because everything will be divisible by 1.95583. This applies to salaries, incomes, pensions, and goods. Better conditions for doing business, the growth of productivity and investments will also increase wages. This was said in the studio of "Offensive with Lyubo Ognyanov" on NOVA NEWS by the Chairman of the General Assembly of the Association of Industrial Capital Vasil Velev.
Bulgaria has met the criteria for the euro. On June 4, our country received a positive assessment from the European Central Bank and the European Commission.
In the medium term, the country has the potential for more accelerated development and income. Among the immediate direct benefits of the euro are that hundreds of millions will not be lost from currency conversion for export-oriented businesses - they will not have to pay fees for two bank accounts - in both currencies. Accounting and related administrative costs are eased. Bulgaria is more ready for the euro than most countries in the eurozone. According to Eurostat, we have a 60% government debt to GDP ratio, we are in second place among the best in this indicator. Whether we will have higher salaries does not depend on entering the eurozone, but on whether we will all work better - workers, management and politicians. "Better conditions for doing business, growth in productivity and investment will also increase wages," Velev commented.
The Eurogroup ministers and the first financiers from ECOFIN in Luxembourg must give their opinion on the reports. The EU heads of state and government will also give their opinion during the regular meeting of the European Council, which will most likely be held by the end of June. If they also give the green light in July, it will mean that Bulgaria will become the newest member of the eurozone. This meeting will be held on July 8. The requirement is that the proposal for the introduction of the euro in Bulgaria be supported by a qualified majority.
Comparing the exchange rate, Velev gave an example - if your salary is now 2,000 leva, after January 1 it will be 1,022.58 euros, which will be rounded up in favor of the worker, since he has to take money.
"In any case, the worker will not get rich, but in any case he will not suffer from the currency conversion. 1 leva is 51 euro cents, it is easier to round up to 50. There is competition in the provision of services - it will not allow for speculation. Where there are monopolies and cartels, there are hyperactive institutions. The risks in our country are lower because of the currency board, even without being in the eurozone. The business is about to sign a memorandum of ethical conduct with the government," Velev also said.
According to the Convergence Report of the European Central Bank (ECB) published today, since 2024, Bulgaria has made significant progress in terms of economic convergence with the euro area. “This positive assessment of convergence paves the way for Bulgaria to introduce the euro from 1 January 2026 and become the 21st EU Member State to join the euro area. I would like to congratulate Bulgaria for its enormous commitment to making the necessary adjustments“, said Philip R. Lane, a member of the ECB Executive Board.
According to Velev, although small, the currency risk for investors exists.
"The euro is becoming a disproportionately large part of the leva. "We have given it the Cyrillic alphabet, the Bulgarian symbols will be seen by over 350 million buyers and users of the single currency. The risk of Bulgaria paying the debts of the other eurozone members is negligible compared to the benefits of entry," he stressed.