The euro will help, but it does not on its own guarantee higher standards of living, said Kristalina Georgieva, Managing Director of the International Monetary Fund, at the high-level conference in Sofia titled ''Bulgaria on the Doorstep of the Eurozone''. According to her, Bulgaria faces difficult medium- and long-term challenges: population aging, brain drain, and infrastructure and defense needs that compound fiscal spending pressures. According to Georgieva, ''the short answer to the question of how to do better, given all the challenges, is: with responsible policies aimed at protecting the economy from overheating, guarding economic and financial stability, and lifting private sector productivity, competitiveness, and growth''.

''Bulgaria’s entry into the eurozone should not be viewed as a final goal. This is just the beginning of the journey”, said European Central Bank President Christine Lagarde at the forum. She called on both authorities and citizens not to fall prey to “reform fatigue” and to continue implementing structural and economic changes.

Christine Lagarde also commented on the most common concerns regarding accession — loss of national sovereignty and price increases. ''Joining the euro is not a loss of sovereignty, it is a gain'', said Lagarde. In her words, Bulgaria will not lose control over its economic policy. ''In practice, the country has been importing the monetary policy of larger economies, but with no seat at the table where those policy decisions are made'', Christine Lagarde went on to say.  Regarding prices, the ECB President noted that any temporary effect from price rounding when introducing the euro is usually minimal and occurs only during the first six months. ''After that, the price effect is fully absorbed”, Christine Lagarde emphasized. ''In fact, when we look back at previous waves of euro adoption, the greatest risk countries faced was not losing sovereignty or seeing an increase in prices. It was losing reform momentum once inside the euro area and thus missing out on the full benefits of the single currency'', said Christine Lagarde.

Published and translated by Kostadin Atanasov

Photo: BTA