The replacement of our own currency with the euro and the smooth transition to the Eurozone will not actually be so smooth. We will wake up on January 1 already in the Eurozone, but I believe that we will manage without major technical problems. We will not automatically become richer or poorer from this - everything will be divided by 1.95583 - both salaries and debts, loans and goods in the store. There are certain risks that employer organizations calculate as relatively small, and multiplied by the small probability of their occurrence, they are incomparably smaller than the benefits of entering the Eurozone. That is why this has been our priority for years," said the chairman of the general meeting of AIKB Vasil Velev in "Denyat ON AIR".
Economic preparation and the benefits of the Eurozone
Regarding the criticism that entering the Eurozone is more of a political than an economic decision, Velev stated that business and the country as a whole are prepared - even with better indicators in some areas compared to the average level in the Eurozone. He recalled that the Bulgarian government debt is significantly lower than that of many member states, which speaks of good financial discipline.
"From the very act of entering the Eurozone, we will receive a better status, which will lead to an increase in the credit rating and, accordingly, to a reduction in financing costs and debt costs - which are actually growing, given some unwise budget policies implemented over the last 4 years," Velev told Bulgaria ON AIR.
Challenges and prospects for business
Velev noted that problems such as high energy prices and heavy regulations burdening business do not depend on membership in the Eurozone and must be addressed at a higher level in the European Union. These factors have a serious impact on the competitiveness of the country's industry.
Regarding the state of the Eurozone, he emphasized that despite the high indebtedness of some countries, lending conditions are better, and the euro remains the second most used currency in the world, with a key role for Bulgarian trade. This makes the adoption of the euro a correct strategic step that will provide businesses with a better financial status and access to resources.
"Foreign investments will not come flooding in the next day, but other things being equal, the status that membership in the Eurozone gives us is better. The credit rating will be better and for some investors this may be decisive in choosing where to invest. The country will have better access to financial resources and "life jackets", because no one can guarantee that we will not fall into a crisis," Velev explained.
As for the banking system, he pointed out that liquidity is good and joining the Eurozone will free up additional funds that banks will be able to use for loans, provided there are creditworthy projects.
Velev expressed the opinion that the efforts of regulators should be directed towards revealing and disrupting cartel practices that distort the market and increase prices. He is optimistic that with active work by the institutions, such problems can be solved.