The Union agrees to the Euro in Bulgaria. Prices under strict observation of the European Commission
The decision made unanimously by the member states means that at the beginning of next year Bulgaria will become the 21st EU Member State in Euroland.
Dombrovskis referred to the fears of increasing prices after the introduction of the euro. He emphasized that it is a matter that requires monitoring, because some companies use the very change of currency as an excuse to raise prices.
He added that with previous transfers to Euroland (in 2023 Croatia joined the euro area) the impact of currency change on inflation was very limited and hesitated in the range from 0.1 to 0.3 percent.
“It is more than balanced in the average period, thanks to lower interest rates, lower currency exchange costs, greater price transparency” – he said.
According to Dombrovskis, price monitoring should be started well in advance and continued after the introduction of the common currency. He noted that you can also point to companies that use the very change of euro as an excuse to raise prices.
It also helps – as he said – “double display of prices before and after changing so that citizens get used to prices in euros.” He added that it also pays to work with the business community over the fair change of currency so that companies do not use the entry into Euroland as an excuse to increase prices.
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To introduce the euro, the state must meet the so -called convergence criteria. Member States decide whether a given country may adopt a common currency on the basis of the European Commission's assessment. The EC positively assessed Bulgaria's efforts on June 4.
