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Question marks over Bulgaria and the euro zone

Sun, Mar 28 2010 10:07 CET

byThe Sofia Echo Staff

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Question marks over Bulgaria and the euro zone

Kristalina Georgieva, European Commissioner for International Co-operation, Humanitarian Aid and Crisis Response, and Bulgarian Prime Minister Boiko Borissov.

Photo: Nadezhda Chipeva

It was difficult to come up with a prognosis about the state of the euro zone in 2013 because the problems in Greece had caused problems throughout Europe - but if Greece demonstrates discipline and cuts its deficit, the result would benefit the euro and the euro zone in general, Bulgaria's European Commissioner Kristalina Georgieva said.

Georgieva made the comments in an interview with Bulgarian National Radio on March 27 2010, news agency Focus said.

The same day, Bulgarian Prime Minister Boiko Borissov said that Bulgaria's deficit problem had worsened because of more than 150 contracts and annexes to contracts, signed by the former socialist-led government, that had produced an additional deficit of 2.1 billion leva.

This could foil Bulgaria's plans for swift accession to the euro zone because it could mean that the country had an excessive deficit problem, Borissov said.

The contracts had been signed in violation of the 2009 Budget Act, with no money having been available to pay for them, and Government lawyers had advised that all 150 contracts be referred to the prosecuting magistracy, Borissov said. 

Bulgaria would have a chance of achieving its dream of joining the euro zone only if prosecutors deemed these contracts to have been unlawful, he said.

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Comments

Anonymous ExPat Wed, Apr 07 2010 18:01 CET
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I fully agree. I can also see no additional benefit of adoption EUR except additional transition costs. The BGN is anyway begged to EUR, for investors (if there are any) there is no excessive currency risk. And for sure there will not be more investors just because of EUR, there a lot of other problems to solve (e.g. infrastructure, justice, etc).
EUR zone anyway will be very reluctant for expansion because of current big difficulties for the EUR (GR, SP, PT). Dear BG focus on problems at hand .. and SOLVE them !

Anonymous Raptor Mon, Mar 29 2010 09:33 CET
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What is the point if adopting the euro if there is a 2 to 5 billion Leva budget deficient....??

Anonymous Leva Sun, Mar 28 2010 19:39 CET
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One of reasons people come to BG is because of the affordable prices and cheap holidays. Rushing to switch to the euro is a big mistake. What will attract people to come to BG when this happens?


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