[ad_1]
The Neue Zurich Zeitung (NCC) stresses that Bulgaria intends to join both the ERM II exchange mechanism and the banking union. ERM II, which is a sort of anteroom for the euro, links the euro strongly to the euro for the candidate country, with gaps of up to +/- 15% of the exchange rate of the euro. For at least two years, the candidate faces this task without any particular turbulence before moving on to the introduction of the euro. The fact that Bulgaria has unilaterally linked the Bulgarian lev to the euro does not change this period, explains the publication.
The case of Bulgaria differs little from the previous one. Today, candidates for membership to the euro area must also be part of the Banking Union – a prerequisite for the introduction of the euro. In previous enlargements of the euro area, this was not necessary because the Bank Union did not exist yet. Its accession means that the European Central Bank (ECB) in Frankfurt am Main and the Single Restructuring Council (SSP) in Brussels will strengthen the supervision of the banking sector in Bulgaria. The CNA also points out that Bulgaria can introduce the euro at the earliest in 2022.
Is it ready for Bulgaria?
Bulgaria wants the euro and on paper there is nothing against it: the country's budget is balanced, and the public debt is less than 30% of GDP – l & # 39; one of the weakest in the EU, according to Süddeiche Zeitung. Bulgaria is doing well in terms of both inflation and long-term interest rates. In doing so, Bulgaria fulfills the so-called convergence criteria. But before being admitted into the euro zone, she will have to prove something else: she must undergo the test called the exchange rate mechanism. According to the European Commission (EC), Bulgaria needs to improve its productivity, outside the criteria of joining the Banking Union. It was created after the outbreak of the euro crisis and is not part of the Maastricht Treaty. Nevertheless, Bulgaria needs to harmonize its national legislation with European rules, which will be subject to verification by the ECB. The CC also recalls that more than ten years after its accession to the EU, Bulgaria remains the poorest country in the Community, which also has a serious problem of corruption. The gross product per capita is about 7,000 euros. By comparison: in Germany it is 42 thousand euros and in Luxembourg 103 thousand euros
The Germans are divided
According to a survey conducted by the Institute of Sociology Kantrar Emnid quoted by wallstreet-online.de, 42% of Germans support the medium-term idea that Bulgaria should be accepted into the monetary union. At the same time, 40% of respondents opposed the introduction of the euro in Bulgaria, and 18% said that they could not be resolved. The biggest approval of the acceptance of Bulgaria in the euro area among the voters of left (59%) and the Social Democratic Party (57%). The lowest is support for the voters of the "Alternative for Germany" – 25 percent, and the HDZ / HS – 35 percent
The survey was conducted by FOCUS magazine on 10-11 July 2018 For him, 1010 elderly Germans were interviewed
[ad_2]
Source link
