Some of the Bulgarians have fear and resistance to the accession to the euro area, as they expect the inflation processes to be strengthened with the act of accession itself. Are such fears justified? Are there tools for the state government to master the possible price spike, or is it best to leave it to the “invisible hand of the market”?
The euro area is not a factor in strengthening inflation processes. On the contrary, it is an economic zone of low and stable inflation and has the full toolbox for its containment, in price developments similar to those we have observed in recent years. The ECB’s actions are a testament to this objective with monetary policy instruments.
Bulgaria has already embarked on joining the euro area, but what is now especially important to do in this whole process?
Let’s finish it successfully. With an appropriate policy framework and with the degree of technical readiness we have, this is fully achievable.
