Novinite.com
11 Jun 2025

Journalist Tsvetelina Sokolova from Mediapool voiced concern in an interview with BNR that the biggest danger tied to Bulgaria's entry into the euro area would be a loosening of fiscal discipline. According to her, should the government relax its approach to public spending, it could trigger a chain reaction that may threaten the country's budget stability.

She warned that once the euro becomes the official currency, the risk increases that more professional groups will begin demanding wage hikes. However, she pointed out that after July 8, the state budget cannot simply shift gears and begin spending freely. Any movement beyond the 3% deficit ceiling would put Bulgaria at odds with EU fiscal requirements.

Sokolova stressed that tackling wages sector by sector is not a sound method. Instead, a clear, consistent strategy should be applied across all budget-dependent sectors. In her view, piecemeal decisions in matters of salaries and tax policy do more harm than good. The approach needs to be unified and disciplined, not reactionary.

She emphasized that Bulgaria must maintain its current policy of fiscal restraint, regardless of the euro accession timeline. The scheduled introduction of the common currency, she said, should not be mistaken as permission to bend the budget rules. Sokolova also highlighted the burden of public debt, offering it as a concrete example of how poor fiscal decisions today could weigh heavily on future generations.

Commenting on the public's fears around the euro's introduction, she noted that the government is trying to signal its readiness to act - but actual implementation remains constrained by existing legal frameworks. She dismissed speculations that the euro would automatically push prices upward without limits. According to her, such scenarios ignore the economic reality that price increases are naturally capped by what people can afford.

Source:BNR interview