Thursday, September 17, 2009

Bulgaria: Euro 2013.

Sofia - Bulgaria intends to introduce the euro by 2013, said Finance Minister Simeon Đankov the country.

He was at the press conference, explained that in November, apply for the Bulgarian currency, the leva, the exchange rate regime in the ERM-2, in which the currency of the country remains a candidate two years before entering the euro zone. Bulgaria has not been able to enter the ERM-2 mode, because in recent years had high inflation and the current balance of payments deficit of more than 20 percent of gross domestic product (GDP).

Diplomats whose statements Reuters news agency warned, however, that entry into the euro zone and prevent the high rate of corruption and organized crime, with which the previous government of Socialists is ability to deal.

Bulgaria is the poorest country of the European Union. The new center-right government, formed after elections in July, has taken steps to prosecute former officials who blamed for taking bribes. It also seeks to limit a gray economy and prevent smuggling.

Đankov said that if Sofia would change access to and seriously started to reform, and then enter the euro zone was realistic.

"The new government must demonstrate that it works differently than the last," he said.

Inflation would be the end of this year, should fall below three percent, primarily as a result of reduced domestic demand and the weakening global economy. Account deficit should fall to 11 percent of GDP, with 26 percent, as was the end of last year.

Bulgarian government to the European Commission sent a medium-term fiscal plan and a plan against the crisis. It listed specific steps and terms that will guide the government. Also, the new government has already reduced expenditures, in order to prevent further growth of the budget deficit.

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