Bulgaria and the Euro facts and answers for worried expats

Guest7632Guest11 December 2022 09:21:57

1. What does the adoption of the euro really change for Bulgaria?

For Bulgaria specifically, nothing. We have effectively been in the Euro economy for over 25 years. Even with the introduction of the Currency Board in 1997, the Bulgarian Lev (BGN) was only a formal "avatar" or a Bulgarian brand, first for the German mark, and then for the euro. The lev has no independent "life" of its own, no real economic meaning and has a "doomed" future. With the Currency Board, we have voluntarily deprived ourselves of our own monetary policy, and the national lev owes its stability only to the fact that...it is actually a euro for internal use and bearing the name lev.

2. Will prices rise because of the euro?

Rather not, due to the 25 year old currency board and just like the last countries to adopt the Euro.

However, mechanisms for temporary double posting and price monitoring are needed to minimize the risks of speculative "rounding".

3. Isn't it better to keep the levs "at least for now" instead of accepting the euro?

Of course, there is nothing fatal in not accepting the euro either, since in practice we have already been using a tokenized version of the Euro for 25 years. At the same time, behind the argument "not for now" almost always hides either a frank misunderstanding and/or an unwillingness to admit directly that we are against the euro for other reasons.

4. What do we gain from the euro?

Since we have practically had the euro for 25 years, we have already taken advantage of its advantages (financial stability, low inflation, low-interest rates) as well as its disadvantages (slightly overvalued lev, lack of own monetary policy, higher requirements for banks). If we adopt the euro formally, we will bring even more stability, even lower lending rates and, above all, even more growth and an increase in people's real incomes, given the same internal policies and external factors.

5. Will Bulgaria become less Bulgarian if we accept the euro?

No, by issuing euro banknotes with Bulgarian motifs, to "impose" a little more of our uniqueness and greatness on others.

Let's just imagine the proto-Bulgarian IYI on the 1 euro coin, or the Bulgarian enlighteners St. St. Cyril and Methodius on the 2 euro coin. What about the Bulgarian revolutionary Gotse Delchev on the 50 euro cent coin?

6. Will we adopt the euro "as planned" on 1.1.2024?

No. Not yet.

Anastasija_gust Contributor

Member since 11 December 2022

Anastasija_gustContributor11 December 2022 12:25:39

109

Greetings from Latvija. We had the currency peg like Bulgaria for 10 years.

To us the change was good. Some imported stuffs in shops costed little less after. Bank charges reduced also. Nothing cost more because of the peg. I hope Bulgaria can move forward 25 years is too long.

wtruckyboy Serial expat

Member since 15 March 2022

wtruckyboySerial expat12 December 2022 12:39:47

209

Ah..but..if you look at greece as an example..they too changed from the Drachma to the euro..then found that when inflation peaked..and the fact their money was now controlled by the EU central bank..they couldnt act or control their inflation..and went bankrupt..having to borrow billions

At their interest rates...now successfully paid back..and possibly heading back to the Drachma.

So joining the evro..isnt so clean cut is it..there was a true reason why the uk never joined it..we wanted to control our own money...another reason we left the eu..so we can control our own destiny...as bg has over the years had their own non bg leaders..the eu masters wouldnt be any different.

Wake up..demand a vote on it..thats real democracy.

SimCityAT Expert

Member since 08 April 2014

SimCityATExpert12 December 2022 13:00:52

13206

Ah..but..if you look at greece as an example..they too changed from the Drachma to the euro..then found that when inflation peaked..and the fact their money was now controlled by the EU central bank..they couldnt act or control their inflation..and went bankrupt..having to borrow billions
At their interest rates...now successfully paid back..and possibly heading back to the Drachma.
So joining the evro..isnt so clean cut is it..there was a true reason why the uk never joined it..we wanted to control our own money...another reason we left the eu..so we can control our own destiny...as bg has over the years had their own non bg leaders..the eu masters wouldnt be any different.
Wake up..demand a vote on it..thats real democracy.
-@wtruckyboy

The problem with Greece was that they were paying no tax or very little giving themselves huge bonuses. That's why it went bankrupt.

wtruckyboy Serial expat

Member since 15 March 2022

wtruckyboySerial expat12 December 2022 13:46:09

209

@SimCityAT but..they couldnt act upon their inflation..if it was because of taxes

Or big bonuses alone..the EMF wouldnt have given so much aid..but at least its all paid back back now..well done greece.

wtruckyboy Serial expat

Member since 15 March 2022

wtruckyboySerial expat12 December 2022 13:51:04

209

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Guest7632 Guest

Guest7632Guest27 December 2022 10:07:36

Ah..but..if you look at greece as an example..they too changed from the Drachma to the euro..then found that when inflation peaked..and the fact their money was now controlled by the EU central bank..they couldnt act or control their inflation..and went bankrupt..having to borrow billions
At their interest rates...now successfully paid back..and possibly heading back to the Drachma.
So joining the evro..isnt so clean cut is it..there was a true reason why the uk never joined it..we wanted to control our own money...another reason we left the eu..so we can control our own destiny...as bg has over the years had their own non bg leaders..the eu masters wouldnt be any different.
Wake up..demand a vote on it..thats real democracy.
-@wtruckyboy

Explain what the France does Greece and the UK have to do with Bulgaria?

janemulberry ViP

Member since 23 January 2021

janemulberryViP02 January 2023 23:10:47

1941

I had a reply written to the commenter who thinks Brexit was a good thing but doesn't actually live in the UK and probably obtained EU residency before Brexit, and so is not affected by the consequences. But I deleted it as it was against forum rules.

I do find it interesting that many of the UK politicians who pushed Brexit hard also have EU passports.