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Sat, Feb 11 2012
Bulgaria bombarded with forecasts about joining the euro
Euro coins specially minted in 2004 to commemorate that year's Olympic Games in Athens.
With Bulgaria’s Finance Minister Simeon Dyankov reportedly planning to put in an application in March 2010 for the country to be admitted to the ERM2 waiting room to join the euro zone, he should have no shortage of forecasts to read about Bulgaria’s prospects for going over to the common European currency.
Bulgaria currently uses the lev, which after the 1996/97 financial meltdown, was subjected to a currency board arrangement which first pegged the lev to the Deutsche mark and later to the euro.
Going by reported statements, Government views appear to be that Bulgaria expects to join the euro zone no earlier than 2013.
While Bulgaria now maintains low inflation and the smallest budget deficit in the EU, which should ease its passage, the crisis in Greece is said to be making the bloc nervous about admitting countries such as Bulgaria, or at least admitting it too hastily.
When it comes to foreign leaders, optimism about the issue appears to be the order of the day.
Jean-Claude Juncker, prime minister of Luxembourg and president of the Eurogroup, said on February 24 that he was "optimistic" about Bulgaria’s prospects for being admitted to ERM2.
As reported by daily Wirtschaftsblatt, Juncker , speaking after a meeting with Bulgarian President Georgi Purvanov, said that 2013 was a "good choice" for euro accession but cautioned that Bulgaria would have to prove that it was serious about long-term fiscal stability.
European Parliament President Jerzy Buzek (who is from Poland, another euro aspirant) also named 2013 as a suitable date, saying that he would welcome such a development.
Wirtschaftsblatt noted, however, that with the Greece crisis, strict fulfillment of the Maastricht criteria would be required for admission to the euro, a line not dissimilar to that taken in a report by Die Welt on February 17, which said that Bulgaria could be admitted along with Estonia, Hungary and Poland. No dates for admission have been confirmed.
News agency Reuters said on February 17 that analysts and diplomats, mindful of what had happened in Greece, would keep Bulgaria at bay until it showed real signs of convergence, with the agency adding on February 24 that "2015 looks possible as an earliest adoption date for many aspirants".
Dnevnik, quoting a Reuters poll among 44 leading analysts, said on February 24 that according to the analysts, Bulgaria, the Czech Republic and Poland could adopt the single currency in 2015.
James Warlick, United States ambassador in Sofia, told a February 25 event hosted by the American Chamber of Commerce in Bulgaria that the fiscal discipline of the Government, along with the country's low inflation and current account deficit, should see Bulgaria admitted to the ERM2.
Prime Minister Boiko Borissov has acknowledged that the situation in Greece has led to significant caution about further admissions to the euro zone.
Further developments are expected after March 1, when representatives of the European Central Bank, European Commission (EC) and International Monetary Fund who have been visiting Bulgaria in recent days give their opinions on the country’s economy, including the EC’s view on Bulgaria’s current progress towards convergence.
Bulgaria currently uses the lev, which after the 1996/97 financial meltdown, was subjected to a currency board arrangement which first pegged the lev to the Deutsche mark and later to the euro.
Going by reported statements, Government views appear to be that Bulgaria expects to join the euro zone no earlier than 2013.
While Bulgaria now maintains low inflation and the smallest budget deficit in the EU, which should ease its passage, the crisis in Greece is said to be making the bloc nervous about admitting countries such as Bulgaria, or at least admitting it too hastily.
When it comes to foreign leaders, optimism about the issue appears to be the order of the day.
Jean-Claude Juncker, prime minister of Luxembourg and president of the Eurogroup, said on February 24 that he was "optimistic" about Bulgaria’s prospects for being admitted to ERM2.
As reported by daily Wirtschaftsblatt, Juncker , speaking after a meeting with Bulgarian President Georgi Purvanov, said that 2013 was a "good choice" for euro accession but cautioned that Bulgaria would have to prove that it was serious about long-term fiscal stability.
European Parliament President Jerzy Buzek (who is from Poland, another euro aspirant) also named 2013 as a suitable date, saying that he would welcome such a development.
Wirtschaftsblatt noted, however, that with the Greece crisis, strict fulfillment of the Maastricht criteria would be required for admission to the euro, a line not dissimilar to that taken in a report by Die Welt on February 17, which said that Bulgaria could be admitted along with Estonia, Hungary and Poland. No dates for admission have been confirmed.
News agency Reuters said on February 17 that analysts and diplomats, mindful of what had happened in Greece, would keep Bulgaria at bay until it showed real signs of convergence, with the agency adding on February 24 that "2015 looks possible as an earliest adoption date for many aspirants".
Dnevnik, quoting a Reuters poll among 44 leading analysts, said on February 24 that according to the analysts, Bulgaria, the Czech Republic and Poland could adopt the single currency in 2015.
James Warlick, United States ambassador in Sofia, told a February 25 event hosted by the American Chamber of Commerce in Bulgaria that the fiscal discipline of the Government, along with the country's low inflation and current account deficit, should see Bulgaria admitted to the ERM2.
Prime Minister Boiko Borissov has acknowledged that the situation in Greece has led to significant caution about further admissions to the euro zone.
Further developments are expected after March 1, when representatives of the European Central Bank, European Commission (EC) and International Monetary Fund who have been visiting Bulgaria in recent days give their opinions on the country’s economy, including the EC’s view on Bulgaria’s current progress towards convergence.
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Bulgaria resuscitates plans to apply for ERM-2 entry
Finance Minister Simeon Dyankov said that Bulgaria would be able to cut its budget gap below the three per cent euro adoption limit in the second half of 2011.
Bulgaria could join eurozone in 2014 – Citigroup
Finance Minister Simeon Dyankov said recently ERM II entry remains top of his agenda. He has said Bulgaria will aim to join the 16 countries sharing the euro in 2013.
EU had 22.5B euro external trade deficit in January - Eurostat
The United Kingdom registered the largest deficit, followed by France, Spain, Greece and Portugal. EU27 trade flows with all of its major partners fell in 2009, except for exports to China.
After three days of cold war, Finance Minister Dyankov asks President Purvanov for a meeting
Finance minister Simeon Dyankov requested a March 5 meeting with President Georgi Purvanov, after a row about comments Dyankov made about Purvanov on a talk show.
Greece's cabinet approves further austerity measures
Spending cuts, increase in VAT and freeze on pensions approved by prime minister George Papandreou's ministers at a meeting on March 3 2010.
European Commission unveils strategy to prepare economy for the next decade
Europe 2020: Commission proposes new economic strategy in Europe
EIB outlines 'solid support for real economy' in Greece
EIB delivers 'unprecedented volume of effective and large-scale' funding for recovery in Europe and Greece
February 2010 euro area inflation estimated at 0.9 per cent
In a separate statement, Eurostat said on March 2 2010 that in January 2010 compared with December 2009, the industrial producer price index rose by 0.7 per cent in the euro area and by 0.9 per cent in the EU27.
Bulgarian President enraged by Finance Minister's 'joke'
President Georgi Purvanov demands that Simeon Dyankov backs up comments about Purvanov's alleged assets or resigns
Gloom pervades polls about economy in Bulgaria
Confidence in Prime Minister Boiko Borissov’s Cabinet slid slightly in February, according to a Gallup International opinion survey.
Greek PM warns tomorrow will be 'too late' to act on debt
Ben Bernanke has told lawmakers some private banks may have helped Greece hide the severity of its problems: 'We are looking into a number of questions related to Goldman Sachs and other companies in their derivatives arrangements with Greece'.
Euro area annual inflation was one per cent in January 2010
Among EU states, annual inflation was 1.7 per cent in January, with the highest in Hungary, Romania and Poland.
EU interim forecast: Recovery is in progress but remains fragile
Real GDP started to grow again in the third quarter of 2009, ending the longest and deepest recession in the EU's history, according to the European Commission.
February 2010: European Union business climate indicator continues to improve
Economic Sentiment Indicator stands still, after almost a year of uninterrupted improvement.
Bulgaria, Romania, Poland, Czech Republic 'to adopt euro in 2015' - analysts
The financial turmoil in Greece could postpone admission of emerging European countries, including Bulgaria, into the eurozone, according to a poll among leading analysts.
MEPs call for stronger European economic governance
More powerful EU financial supervisory bodies and less national interest, MEPs demand.
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Movers and shakers
Selectivity, not popularity, is the driving force behind Sofia's most exclusive members' only club.
Appointments
British Council
Lyubov Kostova was appointed country manager of British Council Bulgaria effective January 1, replacing Tony Buckby, who left in October 2011 to take a similar position at British Council Greece. Kostova has been with British Council Bulgaria for 11 years, as public communications manager and, since 2008, as the head of project and partnerships department. Prior to joining the British Council, Kostova was head of international activities at the National Academy for Theatre and Cinema Arts (NATFIZ). She has a degree in Indian studies from Kliment Ohridski Sofia University.
CEZ
Stefan Apostolov is the new chief executive of CEZ Razpredelenie Bulgaria, the power transmission subsidiary of Czech energy company CEZ in the country. He replaces interim chief executive Ales Damm, who remains the chairperson of the CEZ Razpredelenie management board. Apostolov has 30 years of experience in the energy sector, joining CEZ in 2007 as director of customer service and was later appointed as head of business development. Apostolov has a master's degree in electric systems from the Belorussian National Technical University in Minsc, management diplomas from Open University London and New Bulgarian University, as well as a master's degree in business administration from Plovdiv University.
BASF Bulgaria
Valentina Dikanska is the new general manager of chemical industry giant BASF subsidiary in Bulgaria, taking over from Herbert Fisch, BASF vice president for Southeastern Europe. Dikanska, who started her career as an expert in the Finance Ministry, joined BASF Bulgaria as director of finance and administration in 2002. She becomes the first Bulgarian to hold the top management position in the company in its 40-year history on the Bulgarian market. Dikanska holds a master's degree in economics from the University for National and World Economy in Sofia.
Rompetrol Bulgaria
Alexander Albin has been appointed chief executive of fuel distributor Rompetrol Bulgaria, replacing Nichita Sorin, who left to become chief executive of Rompetrol Gaz in Romania. Albin was previously chief executive of Rompetrol Georgia. He has more than 15 years of experience in the oil and gas industry; prior to joining Romania's oil group Rompetrol in 2008 as an adviser, he oversaw operations at Atyrau refinery in Kazakhstan, owned by Rompetrol's parent company KazMunaiGaz. He previously held top management positions at two other leading Kazakh oil and gas companies.
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Cosmos,
it makes little difference if the UK has Euros or not because yourcurrency mostly moves with the Euro on allmarkets. UK's economy is small and insignificant compared to a giant like Germany, which is the driving force behind the Euro.
JG,
you must be American because they tend to be as naive about international currency exchange.
I've had US folks ask me how much of what currency you can get for a $ as if that somehow dictates buying power.
Leva is pegged to the Euro (at the nominal [...]
Read the full comment DM number).
The actual number isn't as important, for the board allows us to print only so much
levas, as to stay at that mark.
That is the real reason behind the low pay in BG - pay is dictaded by overall productivity, and if you are diciplined enough not to print beyond your productivity, as are we to no credit to us, then you get low pay.
We who live in Slovakia have just passed 13 months with the euro. the biggest fear about joining the euro is that prices will jump up. the government passed a law controlling price increases, and for the first 6 months or so, it worked. Then we experienced a huge jump in certain prices, namely, prices in bars and restaurants. Aound 10 - 20%. Needless to say, our salaries did NOT increase accordingly.
So I would warn Bulgarians: once your govt announces the firm date for conversion, you better start saving big time. Or find a way [...]
Read the full comment to significantly increase your income, because big price increases are on their way. It will take us a long time to catch up. having said that, it is beter to have the euro than some small country's local currency. We like having the euro. But there will be a price to pay for it.
The main problem is that the Leva gets to Euro's. It is a big joke to assume that the leva has the same value as the German Mark and the Dutch Guilder at the time they got the Euro. It is not only a joke it is the purest noncense. The leve is not worth a quarter.
Why do you think a great nation like Great Britain will not adopt the Euro so BG take a bit of advice tell Brussels to Bog Off.
Just a simple calculation. this is what will happen when BG will get the so wanted EURO. Now for example a villager gets 300 leva/month = 300 bottles of beer, after the introduction of the EURO it will be as followed: 150 EURO/month = 150 bottles of beer. Maybe showing it like this the people of Bulgaria will wake up in time, if not i for see floods caused by tears.
As a warning, the Euro Zone is not the Eldorado and the EU not the Salvation. The corruption within the European 'Government' is just better disguised and accountability better hidden.
It maybe better to build up the Bulgarian economy steadily for a few years longer and see what happens with the Greek situation, we have not seen the last of the ripples yet.
ok go into the euro at there own peril. when every thing goes up at there own greed they will see, very big changes im not a phycic. but there will be decline in tourism, thats one of there main businesses. As there beers wines food cigarettes and other things face it this is why its attractive to the other countrys also summer when the sun is shining.to me there going down the same road as spaion and others when they end up as they say with egg on there face it will be too late.ive in this lovely land [...]
Read the full comment for 5 years maybe know i will with my family have to consder moving somewere else sad times.
Its not the EU who should be deciding who can come into the system it should be up to the country to decide wether they want to sell themselves to a bunch of inexperienced psuedo politicians who would love to decide your future for you.Forget the euro boris say you will think about it and play your own cards
Maybe they could do a simple swap ?
Bulgaria to take over Greece's place in the EuroZone, and Greece to take over the leva and re-name in the "New Drachma".
Solves everybody's problem....
These are the same people that said it was good for Greece, Spain and Germany and never predicted the current global credit crisis. Trustworthy bunch then ?