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Bulgaria will become 21st country joins The Euro Monetary Union was established on New Year’s Day to further integrate into the Eurozone European Union.
But the historic milestone comes amid skepticism amid political instability and concerns among ordinary people about rising prices.
Supporters of the switch from the lev to the euro hailed it as one of the greatest achievements since the 1989 shift from a Soviet-style economy to democracy and free markets. They hope this will make the country more attractive to investors and reinforce its move towards wealth. Western Europe.
Still, many Bulgarians remain uneasy in a country where corruption is rife and trust in authorities is low.
One concern is that as inflation rebounds to 3.7%, merchants will round prices or otherwise take advantage of the shift to fuel inflation.
A March Eurobarometer poll showed that 53% of 1,017 respondents opposed joining the euro, while 45% were in favor. Another Eurobarometer poll of a similar sample, conducted between October 9 and November 3, showed that about half of Bulgarians opposed the single currency, while 42% supported it.
The March poll had a margin of error of about plus or minus 3.1 percentage points.
Some welcome the euro, others wary
Earlier this year, the government completed the euro adoption process by lowering inflation to 2.7% in order to comply with EU rules and win approval from EU leaders. But with that hurdle cleared, political chaos has entered a new chapter.
this The government resigned within a year Nationwide during his tenure anti-corruption protests. That leaves the country without a regular budget next year and blocks long-overdue plans for structural reforms and a decision on the use of EU support funds. A new election, the eighth in five years, is expected to be held next spring.
Nevelin Petrov, 64, said he welcomed the euro. “Bulgaria is a full member of the European Union and deserves its rightful place alongside other developed and democratic European countries,” he said. “I believe the adoption of the euro will contribute to our country’s long-term prosperity,” he said.
Others, like Darina Vitova, sophiasaid things were moving too fast, although she welcomed the change “in principle.”
“Our country’s living standards and income are still far behind those of the richest countries in Europe, but prices here are rising and ordinary people’s lives will become more difficult,” she said. She admits that when heading to beaches in neighboring Greece, it’s easier to pay with the “pocket money” she uses at home.
Bulgaria, with a population of 6.4 million, is one of the poorest members of the 27-nation European Union. The average monthly salary is €1,300 (US$1,530).
Countries that join the EU commit to joining the euro, but joining can actually take years, and some members are in no rush.
Poland, in particular, has experienced strong economic growth since joining the EU in 2004 but not adopting the euro.
Pro-Russian politicians fanning discontent
Opponents of joining fear the changes will allegedly lead to more poverty and a loss of national identity.
Social media spread false information, such as false claims that the euro could lead to the confiscation of bank accounts. Nationalist and pro-Russian groups have exploited these fears.
European Central Bank president Christine Lagarde It said that after countries joined, prices experienced a short-term increase of 0.2% to 0.4%. The price increase may be more noticeable than actual as cafes and hairdressers may delay printing new menus and price lists ahead of the changes, so the increase is simply a delay rather than being caused by the euro.
Anti-euro rallies in May and September were organized by the pro-Russian Vazrazhdane party but were still smaller than the mass protests that toppled the government.
While the anti-euro protests were supported by older people based on economic anxiety, the mass protests that toppled the government appear to represent younger voters tired of corruption and eager to integrate into Europe.
Analysts say adoption of euro a strategic advantage
Anti-euro disinformation spread by pro-Russian politicians and social media aims to “reduce support for the EU, NATO and Ukraine”, Central Europe German Marshall Fund in Berlin.
Bulgaria’s European integration “is not in Moscow’s interest at all, so if it can somehow polarize society and weaken support for the EU, that’s what it’s trying to achieve,” he said.
Adopting the euro is another way to counter Russian influence, he said: “The further Bulgaria moves forward in its European integration, the harder it will be for Russia to influence the country.”
Petar Ganev, Analyst sophiaThe Institute for Market Economics said the outgoing government had sent a signal of uncertainty to foreign investors.
“Instead of using the adoption of the euro as a way to send a strong and positive signal to the international community (investors, debt holders and those investing in Bulgarian assets and economic activity), we risk sending the opposite message,” Ganev told The Associated Press in an interview.
Ganev believes that joining the euro should be seen as an opportunity and an additional mechanism to address corruption and rule of law issues, although it will not by itself solve Bulgaria’s long electoral cycles and political fragmentation and instability.
Economic impact likely to be mild
Local economists believe that joining the euro zone will not bring huge changes to the Bulgarian economy. This is because the lev has been legally pegged to the euro since 1999, with a fixed exchange rate of 1 lev for every 51 euro cents.
Throughout the month of January, levs and euros will double as cash payments, but people will only receive change in euros.