Multi-speed Europe

The path to Eurozone accession for Bulgaria may see a significant milestone in 2025, albeit not at the outset of the year, according to Dimitar Radev, the governor of the Bulgarian National Bank (BNB).

Amidst discussions about Bulgaria's journey towards joining the Eurozone, Deputy Governor of the Bulgarian National Bank (BNB), Petar Chobanov, highlighted the robustness of Bulgaria's banking system, stating it aligns closely with Eurozone standards.

Bulgaria's economy experiences annual losses amounting to hundreds of millions of euros due to its exclusion from land-based Schengen membership. The enduring queues of lorries at border crossings persist, imposing significant financial burdens on the nation. This situation translates into a substantial increase of 15% to 18% in the prices of goods in shops across the country.

As Bulgaria grapples with a deepening political crisis and the looming specter of early elections, the economic ramifications are starkly evident. A recent economic forecast from the Italian financial group "Unicredit" sheds light on the dire consequences, estimating that the turmoil will cost the Bulgarian economy a staggering BGN 1 billion.

Bulgaria's aspirations to join the Eurozone in 2025 face significant hurdles as economic slowdown and political uncertainty pose formidable challenges, according to a recent analysis by the World Bank.

Economic growth in the six Western Balkan countries is projected to rise 3.2% this year and 3.5% in 2025, going back to pre-pandemic averages but still too low for faster convergence with the European Union, the World Bank has said in a report.

In a decisive move to alleviate the burden on European truck drivers and streamline border crossings, the European Parliament (EP) has called for the lifting of Schengen land border controls for Bulgaria and Romania by the end of 2024. This significant step follows the recent abolition of air and sea border controls on March 31, 2024.

During their meeting, the new framework of fiscal rules, the course of implementation of the Recovery Fund, as well as tax policy issues were discussed

National Economy and Finance Minister Kostis Hatzidakis told the Parliament's Finance and European Affairs Committees on Thursday that the government will "have to be serious as regards fiscal policy and we will be. We believe in fiscal seriousness."

Concerns loom over Bulgaria's potential entry into the eurozone as the nation grapples with political instability in the months ahead. Analysts warn that the absence of a regular government could impede progress, posing a significant obstacle to fulfilling official targets.