Bulgaria gets closer to the Euro

 

The Bulgarian state joined the ERM II on 10 July 2020, and in October 2020, the ECB placed 5 Bulgarian banks under its direct supervision. In this context, the country has renewed four commitments to the European Commission:

– Ensure the sustainability of the non-banking sector by applying all the obligations relating to the European insurance system (Green Card system), bringing prudential ratios up to standard in asset valuation and litigation management.

– Ensure the proper implementation of the law on the governance of public enterprises (adopted in October 2019, amended in January 2021).

– Improve the judicial framework for bankruptcy, the training of judges and the IT tools at their disposal.

– Intensify the fight against money laundering by strengthening the means allocated to institutions fighting financial fraud.

At this stage, the crisis has not thwarted the objective of total employment. The unemployment rate is around 5% (5.3% in 2021) and is expected to remain at almost the same level in 2022. The labour force participation rate was 72% in 2021, compared to 72.2% in 2020. Average inflation (Harmonized Consumer Price Index annual average) was 2.8 percent in 2021 but would accelerate to 11 percent in 2022, according to the April 2022 IMF forecast.

The Ministry of Economy has launched the “Bulgarian National Recovery and Resilience Plan” (EUR 6.3 billion in grants; EUR 3.5 billion in national co-financing) as a new opportunity for structural reforms and investments. Reforms include decarbonizing the energy sector, creating a public company, “Reconversion of Coal Regions,” the fight against corruption, and public procurement. Investments include establishing a national infrastructure for electricity storage from renewable energy sources, the support scheme for constructing at least 1.4 GW of renewable energy sources and batteries, and the economic transformation program. The latter provides targeted support in the form of grants and financial instruments to Bulgarian companies to facilitate their transition to a digital, resource-efficient, low-carbon economy.

Bulgaria is also expected to receive around EUR 10 billion under the 2021-2027 Multiannual Financial Framework.

The Bulgarian authorities have announced that they want Bulgaria to join the eurozone in 2024.

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Bulgaria gets closer to the Euro

 
The Bulgarian state joined the ERM II on 10 July 2020, and in October 2020, the ECB placed 5 Bulgarian banks under its direct supervision. In this context, the country has renewed four commitments to the European Commission: - Ensure the sustainability of the non-banking sector by applying all the obligations relating to the European insurance system (Green Card system), bringing prudential ratios up to standard in asset valuation and litigation management. - Ensure the proper implementation of the law on the governance of public enterprises (adopted in October 2019, amended in January 2021). - Improve the judicial framework for bankruptcy, the training of judges and the IT tools at their disposal. - Intensify the fight against money laundering by strengthening the means allocated to institutions fighting financial fraud. At this stage, the crisis has not thwarted the objective of total employment. The unemployment rate is around 5% (5.3% in 2021) and is expected to remain at almost the same level in 2022. The labour force participation rate was 72% in 2021, compared to 72.2% in 2020. Average inflation (Harmonized Consumer Price Index annual average) was 2.8 percent in 2021 but would accelerate to 11 percent in 2022, according to the April 2022 IMF forecast. The Ministry of Economy has launched the "Bulgarian National Recovery and Resilience Plan" (EUR 6.3 billion in grants; EUR 3.5 billion in national co-financing) as a new opportunity for structural reforms and investments. Reforms include decarbonizing the energy sector, creating a public company, "Reconversion of Coal Regions," the fight against corruption, and public procurement. Investments include establishing a national infrastructure for electricity storage from renewable energy sources, the support scheme for constructing at least 1.4 GW of renewable energy sources and batteries, and the economic transformation program. The latter provides targeted support in the form of grants and financial instruments to Bulgarian companies to facilitate their transition to a digital, resource-efficient, low-carbon economy. Bulgaria is also expected to receive around EUR 10 billion under the 2021-2027 Multiannual Financial Framework. The Bulgarian authorities have announced that they want Bulgaria to join the eurozone in 2024.
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