Economics
ECB's ‘Serious Concerns’ Aim to Cool Bulgaria's Euro Ambitions
- Officials flying to Sofia to deliver preliminary assessment
- ECB sees macro-economic, convergence imbalances in Bulgaria
This article is for subscribers only.
The European Central Bank poured cold water on Bulgaria’s goal of entering the waiting room for euro membership this year, saying the Balkan country must first strengthen financial oversight and the economy.
With low public debt, a budget surplus and a currency that’s already pegged to the euro, Bulgaria fulfills the formal criteria for joining the single currency, drawing praise from the European Commission for its preparations. But the ECB said Wednesday in a report that there are “serious concerns” over governance and the long-term sustainability of inflation convergence as the European Union’s poorest member strives to overcome the wealth chasm with other euro-area nations.