The European Bank sets new conditions for Bulgaria

Before joining the European banking system and ERM2 – the waiting room of the euro zone, Bulgaria must proceed with a series of reforms. The warning appears in the European Bank's response to Sofia's official request to be admitted to this region.

Part of the announced conditions is the stability of the banking system and the strengthening of control of commercial banks and non-banking financial system insurance, pension funds, judicial enforcement and other institutions and organizations. The management of state enterprises must be improved and new European regulations on money laundering must be applied. This is not the political factor but the professional competence that must be based on the appointments of executives in the public sector, warns the European Bank.

A very important condition is added that does not appear in the banking system –

European standards so that significant progress can be made to be accomplished in the fight against organized crime and corruption. "We call on the Bulgarian authorities to accelerate the reforms carried out under the verification and control mechanism, given their importance for the stability of the financial system", said Vice-President of the European Commission Valdis Dombrovskis. He added that the renunciation of this mechanism was not a condition for the entry of Bulgaria into the euro area.

Bulgaria is the first member country of the Union whose membership in the Banking Union and ERM2 mechanism are subject to additional criteria. The European Commission is motivating its position on the decision not to let the Greek crisis repeat itself.

Bulgaria must meet not only the five basic criteria of the euro area but also a set of criteria for the proper functioning of its system. justice and public administration. The European Central Bank will conduct a series of stress tests for Bulgarian financial institutions over the next 12 months. The conclusions will be announced within a year. If the report is positive, Bulgaria will be able to enter the antechamber of the euro zone

On the political level, there is a consensus between the governors and the main opposition parties on accession to the euro area. The good opposition, however, warned that a "waiting room for the waiting room of the region" was created for Bulgaria, illustrating the problems of the current populist government