Bulgaria and the euro: PM signs co-operation memo with business, labour bodies on consumer protection
At a ceremony at the Cabinet building on June 9, Bulgarian Prime Minister Rossen Zhelyazkov signed a memorandum of co-operation with several employer associations, trade union bodies and industry associations in connection with consumer protection in the process of introducing the euro in Bulgaria.
The memorandum was signed with the Confederation of Independent Trade Unions in Bulgaria, Podkrepa trade union federation, Association of Banks in Bulgaria, Association of Bulgarian Employers Organizations, Alliance of Technological Industries, Bulgarian Association of Supplementary Pension Insurance Companies, Association of Bulgarian Insurers, Bulgarian Association of Licensed Investment Intermediaries, and the Bulgarian Association of Asset Management Companies.
As The Sofia Globe reported at the time, the European Commission and European Central Bank convergence reports published on June 4 concluded that Bulgaria meets the criteria and is ready to adopt the euro on January 1 2026. Decisions by the relevant European institutions on admitting Bulgaria to the euro zone are expected in July.
On June 4, Bulgaria’s Cabinet approved the creation of an oversight mechanism for the introduction of the common European currency in Bulgaria, which will co-ordinate the actions of state bodies tasked with stopping any attempted profiteering prior and following Bulgaria joining the euro.
Speaking at the June 9 signing ceremony, Zhelyazkov said that the introduction of the euro cannot lead to an increase in the prices of goods and services, except due to the presence of objective economic factors.
He said that the macro-framework of the budget provides that inflation in Bulgaria this year will not exceed three per cent. These are the frameworks within which price levels should move, if there are no other factors that would objectively determine price dynamics, he said.
There are currently no such factors and any increase in price without the presence of price-forming elements that objectively determine this will be considered by the Bulgarian state to be a form of speculation, Zhelyazkov said.
He highlighted the importance of partnership with trade unions, employers and industry organisations and associations in the interest of maximum awareness of the public on the topic.
“Our goal with this memorandum is to establish a sustainable, contractual framework for our relationships,” Zhelyazkov said, emphasising consumer rights.
“Protecting the interests of consumers means protecting the interests of every Bulgarian citizen and answering every question that Bulgarian citizens will ask and ask regarding savings, income and prices,” he said.
Earlier on June 9, Zhelyazkov told a forum organised by the Sofia district administration on the introduction of the single European currency in Bulgaria that the state has the will and has the necessary mechanisms for the calm and smooth introduction of the euro.
It is important to dispel the fears of people and businesses in small settlements related to three things – income, savings and expenses, he said.
Zhelyazkov emphasised the benefits for the Bulgarian economy from the adoption of the euro.
He said that there is no reason for people to start spending their savings in a panic. He called on people not to succumb to attempts at manipulation, but to trust verified sources of information such as institutions. Recent days and weeks have seen stepped-up negative campaigning by minority pro-Russian political forces, using lies, to spread disinformation and fear about Bulgaria and the euro.
Within the framework of the information campaign, a number of channels for communication with the public are envisaged, so that they receive timely and complete information about the introduction of the euro, Zhelayzkov sid.
He expressed the state’s determination to counteract attempts at speculation. Zhelyazkov said that the focus of attention will be on essential goods and services.
Regulated prices, in turn, are monitored very carefully by regulators, he said.
Regarding energy, Zhelyazkov highlighted the importance of diversification, as well as energy infrastructure, which will allow for a better single energy market in Europe.
(Photo: government.bg)
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