Bulgaria’s entry into the euro zone will provide stability as part of the currency union and ensure the European Central Bank’s main objective of medium-term price stability, ECB President Christine Lagarde said on Thursday.
Speaking at a press conference, Lagarde said adopting the euro would bring “significant benefits” to Bulgaria but stressed the importance of managing the transition carefully.
She welcomed the participation of Dimitar Radev, governor of the Bulgarian National Bank, as an observer on the ECB’s Governing Council until the country’s planned full accession on Jan. 1. Once inside the bloc, Bulgaria will gain voting rights on monetary policy and economic stability issues, she added.
Lagarde acknowledged concerns in past accessions over potential price rises during the currency change, but said the euro had proven to facilitate trade and mobility while eliminating exchange rate risks. She noted Bulgaria had already introduced dual price displays in lev and euro since August to smooth the process and urged authorities to enforce rules strictly.
“I am confident Bulgaria will benefit from the advantages of the euro and continue to develop its economy in a stable and predictable monetary environment,” she said.