Galery

1

We are all in the same boat in the EU, the interest in resolving the current situation is common. The provision of funds from some states to others within the EU is a process, which should be balanced between the interests of the states providing the resources and the countries - recipients of the aid, demonstrating the fundamental European principle of solidarity between the member states in conjunction with the rigor to conduct the necessary reforms.

The developments indicate that the EU and Euro zone decision-making method in the financial field is slower than needed to calm the markets. Policymakers have to build more operational mechanisms, able to respond quickly and appropriately.

Currently, the aid allows controlling the situation. These and other countries could need some additional support eventually and my personal opinion is that if this is necessary, appropriate ways and means will be found.

The unified bonds of the Euro zone countries are a matter of the future. Apparently, all Euro zone member states, even those able to be funded under the best conditions, would benefit from a bond market of deep liquidity, able to compete as a reliable choice for savers at global level. In the current situation, unified bonds remain a possible tool, figuratively kept in store to be used if necessary.

When will Bulgaria be ready for the Euro, and under what conditions?

When the relevant political decision is taken, Bulgaria is technically able to meet the requirements for joining the "waiting room of the Euro" (ERM - 2) within a reasonable period of one to two years. Then the country will be able to coordinate with its partners and decide when to join the Euro zone. We should not forget that under the contract to join the EU Bulgaria has committed to join the Euro zone, so the question is not whether but when.

Eurostat data show that Bulgaria has the lowest levels of prices, GDP and labour productivity in the EU. A longer term for the introduction of the Euro would allow to soften these differences. Bulgaria has the opportunity to choose carefully the right moment to join in order to prevent the bitter experience of southern European countries, where much of the current problems are due to the non-competitive ratio between labour productivity and price levels, an imbalance resulting from non-optimal choice of exchange rate and time to join the Euro zone.