Dombrovskis: The euro does't absolve a country from the obligation for fiscal discipline

Bulgaria's accession to the eurozone is good news both for Bulgaria and for the eurozone itself, but this does not absolve member states of their obligation to pursue strong fiscal policies.

This was stated by European Commissioner for Economy and Productivity Valdis Dombrovskis during a briefing in response to a question from Economic.bg

The eurozone does not exempt countries from responsible fiscal and macroeconomic policy. It is important for Bulgaria to continue in this direction," Dombrovskis said.

He explained that the currency board has been functioning successfully in Bulgaria since 1997 and that our country has good experience in maintaining strong fiscal and macroeconomic stability.

According to him, Bulgaria's accession to the currency union will help prove that the eurozone is a successful project.

There are benefits for the eurozone because it expands it, strengthens the euro internationally, and shows that the eurozone is a successful project that is open and attractive to new members," Dombrovskis said.

A matter of preparation

The European Commissioner emphasized that from now on, everything is a matter of practical preparation, specifically how the transition from the Bulgarian lev to the euro will take place.

He added that preparation is required from both the public and private sectors, especially the banking sector.

From now on, it is time for the information campaign, which I know the Bulgarian government has already started," Dombrovskis said.

He recommended that the Bulgarian authorities work more closely with the private sector to ensure that "private operators do not use the euro as a basis for raising prices."

This text was translated by DeepL translator.