The Strategist

FT: Bulgaria and Romania fail economic tests for Eurozone membership

07/01/2024 - 03:18

Bulgaria and Romania have not proved that they fulfill the economic requirements necessary to become members of the eurozone, writes the FT referring to the European Commission (EC) and the European Central Bank (ECB).

Stephanie Jones
Stephanie Jones
These nations' inflation rates are too high in comparison to the rest of the union, according to the ECB and the EC. The organizations also mentioned the continued issues with money laundering and corruption in Bulgaria and Romania.

Bulgaria might enter the euro zone as early as 2025 if it satisfies all requirements set down by EU regulators, the Financial Times notes. For now, the country has fulfilled every requirement, with the exception of bringing its inflation rate down to that of the EU, according to the commission's evaluation of the six non-EU nations' preparedness to enter the single currency zone. The ECB said that Bulgaria's inflation rate for the year ending in May averaged 5.1%, significantly higher than the 3.3% maximum determined for other EU nations.

The ECB stated that although there has been improvement, Bulgaria, Romania, and Hungary still have "relatively weak" institutions and governance. A negative business climate, subpar public administration, tax evasion, corruption, lack of social inclusion, transparency and judicial independence were among the issues mentioned by the regulator.


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