site.btaEuropean Commission VP Dombrovskis: Inflation Is Key Issue for Bulgaria's Eurozone Membership

The Executive Vice President of the European Commission, Valdis Dombrovskis, told BTA on Tuesday that the key issue Bulgaria faces for joining the euro area is inflation and that soon an assessment will be made on where Sofia is on its path to the single currency. Dombrovskis took part in a forum in Zagreb dedicated to Croatia's accession to the euro area, making Croatia the 20th member of the currency bloc.

The event was also attended by the Bulgarian caretaker Minister of Finance Rositza Velkova-Zheleva.

When asked about Bulgaria's progress on its path towards the euro area in recent months, Dombrovskis pointed out that Bulgaria has been part of the European Exchange Rate Mechanism since 2020. "In this regard, I can say that when all criteria are met, Bulgaria can also move towards the euro area," he said.

According to him, the critical matter at this stage is the inflation in Bulgaria in the current context. Another factor is the legislation relating to the Bulgarian National Bank. These topics are under discussion with the Bulgarian government and Minister Velkova-Zheleva.

Asked about Croatia joining the eurozone on January 1, 2023, Dombrovskis called it a success despite some products and services in the country getting more expensive. He pointed out that the technical procedures to switch to the euro were well implemented, mostly thanks to the national central bank and the financial sector as a whole. "The challenge for the country was to implement all these changes in the context of high inflation, which was not the case for other countries when they adopted the euro," he said.

Dombrovskis stated that Croatian authorities are taking measures such as inspections and fines against retailers, who are unjustifiably raising their prices in 2023.

The European Commission Vice President concluded that inflation in Croatia is in line with that of the euro area and that it is lower than the countries in Central Europe that are not part of the single currency bloc.