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The latest attack on the euro zone
Bulgaria will continue to apply to ERM II, despite the negative signals from Brussels. Strong campaign can increase our chances
8 June 2018
Bulgaria | Bulgaria received a "yes" for simultaneous entry into the banking union and ERM II
Bulgaria received a roadmap for reforms and an indicative date for the simultaneous entry into the ERM II and the Banking Union. In a few days, the country must send a request for "close cooperation" with the ECB, and if all steps and commitments are implemented on time, this process should take about a year. This was clear Thursday after a Eurogroup meeting bringing together representatives of the ECB and Denmark (as the only participant in ERM II outside the euro area), Bulgarian Finance Minister Vladislav Goranov and the governor of the NBB Dimitar Radev
"We welcome the intention of the Bulgarian authorities to take the necessary steps to join the mechanism of ERM II," said a statement from the finance ministers of the countries of the euro area. It comes after a letter from Bulgaria sent by Bulgaria, which commits Bulgaria to make reforms to strengthen the financial sector, improve the work of institutions, and start preparations for entry into the banking union
] The EC and the ECB will monitor the progress of these commitments, and when they are implemented, a decision will be made to join Bulgaria in the so-called euro zone waiting room. The Eurogroup's position indicates that the ECB can look forward to completing its badessment of the country's financial system in the year following Bulgaria's official submission to the banking union
"We call on the Bulgarian authorities to implement the far-reaching reforms included in the cooperation and verification mechanism in the field of judicial reform and the fight against corruption and organized crime because of their importance for stability and the integrity of the financial system, "said the Commissioner. Mr Valdis Dombrovskis stressed that this is not a formal criterion to join the waiting room of the euro area, but the country should show some progress in this area. The fact that attention is given to the judiciary is somewhat positive because it can force the government to undertake reforms in this area
It all depends on us
"I believe that the deadline of one year for membership From the statement of Benois Kyore, member of the Executive Board of the ECB, it became clear that the country has several steps before joining the mechanism of close cooperation. 39, between them are linked to a legal framework to enter the banking union, another to a national supervision, which must be compatible with that of the ECB, and a third to a new badessment of the quality of bank badets Bulgarian to be carried out by Frankfurt
"We expect this process to be completed within a year, and the detailed evaluation of the badets could lead to the need for monitoring Bulgaria, and once that Bulgaria will have filled, the road will be free for a positive badessment by the ECB and Bulgaria to be concluded and in the ERM II ", said Mr Kører
The statements of officials in Brussels have also made it clear that this would be the solution for all the countries wishing to join the euro
| negotiated today between Bulgaria, the ECB and the finance ministers
A new external review of the banking sector . Unlike the previous one, this time we have no reason to doubt that it will be as strict as possible. The ECB would not want to take the risk that legacy problems will explode in the face until the BNB has had the incentive to overwhelm the known, so as not to cause further panic / damage of reputation. It would be interesting for the banks to choose the ECB to check. Linking with supervisory reports may seem a way for eurozone countries to leave their loopholes for a while But it may be a valuable way to restore their leverage for reforms of the judicial system. In recent years, they have obviously been exhausted and the criticism has not produced anything, and even the diplomatic tone has been played on the ground as a positivism. Bulgaria received an orientation horizon of about one year. in the mandate of this government . What produces something that is perhaps less important to many – this is likely to be a new incentive to consolidate the Borisov III Cabinet and reduce the chances of early elections until July 2019 Request for purge and skeletons in the non-banking sector. This can only be partially beneficial Bulgaria pushes for a new path, which will now be the norm for entry into the ERM II In the context of l & # 39; habitual apathy on European issues, this seems to be a serious diplomatic gesture |
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