BNB Reports Stable Transition to the Euro, President Iotova Calls for Stricter Price Oversight

The governor of the Bulgarian National Bank, Dimitar Radev, stated that Bulgaria is successfully managing its adoption of the euro so far. According to him, price dynamics remain normal, as reflected in January’s inflation figures.

However, President Iliana Iotova argued that additional measures are needed to ensure Bulgarians feel comfortable in the eurozone. Both spoke at the annual conference of The Economist magazine in Bulgaria on February 12.

One of the first tasks of the incoming caretaker government, Iotova said, will be monitoring prices for food, fuel, energy, and medicines. She noted that the state has so far failed to adequately prepare citizens for eurozone entry and has not implemented Brussels’ recommendations. Even European institutions, she pointed out, have flagged shortcomings in their positive reports on the euro area have made remarks towards our country.

“The convergence report, which was addressed to the political authorities – the government and political institutions – contained numerous recommendations regarding what we have not done. If we want today not only to be full members of the eurozone but also to feel comfortable within it and to be able to propose and implement our ideas alongside other member states, these recommendations should be fulfilled,” Iliana Iotova said.

She stressed that this will also be a priority for the future government: “At this stage, it is crucial to build confidence in the euro and prevent external factors from undermining it, because if you think we have fully convinced Bulgarian citizens, that is naive.”

The President expects Andrey Gyurov to form the caretaker government within a week and begin price monitoring and oversight of regulatory bodies.

“One of my recommendations to the future government today was precisely this: to review past practices, to examine the regulatory bodies carrying out their roles on the ground, and, if there is anything that needs to be done or corrected in this regard, to take action, because clearly the results are not what we expect,” she said.

President Iliana Iotova praised the Bulgarian National Bank and commercial banks for their work so far. However, BNB governor Dimitar Radev reminded that alignment with the eurozone’s monetary policy does not remove Bulgaria’s responsibility to maintain fiscal sustainability and discipline.

Radev said: “Available data so far do not indicate deviations from expectations regarding the technical transition and price dynamics. Ultimately, results will depend on policy consistency and the capacity of the institutional framework to deliver over time.”

He also stressed that it is crucial for the country to continue anti-corruption measures to further strengthen public trust.

Photos by BTA