Central Bank's Governor Dimitar Radev: Bulgaria Will Not Repeat the Greek Scenario When Joining the Euro Area

The Governor of the Bulgarian National Bank expects the country to maintain its political and fiscal discipline even after joining the eurozone expands its borrowing capacity.

"Fiscal discipline has been a cornerstone of our macroeconomic framework for more than a quarter of a century, and that must not change," Dimitar Radev told Politico on June 11.

According to him, the convergence process should reinforce, not weaken, Bulgaria’s longstanding commitment to fiscal stability.

"Previous eurozone enlargements have led to economic booms followed by downturns in newly admitted countries. This is because the European Central Bank’s interest rates are typically too low for economies with low debt and high growth—characteristics common to new members—compared to more developed Western European countries," Radev explained.
"Although Greece is the most prominent example, economic downturns have also affected countries that, like Bulgaria, have a history of communist rule, along with underdeveloped financial systems and regulatory frameworks."

He emphasised, however, that concerns about debt-fuelled spending following improved financing conditions and easier access to international capital markets are unfounded.

"We are fully aware that joining the eurozone means adopting a monetary framework designed for the entire currency union," Radev added.

In his view, the solution lies in strengthening national policies, particularly in the fiscal and structural domains, to ensure resilience within the shared monetary regime.

The European Commission and the European Central Bank issued their final opinion last week, confirming that Bulgaria meets the criteria for eurozone accession, paving the way for the country to adopt the euro on January 1, 2026, becoming the 21st member of the currency union.

This is a historic moment for the Balkan country of 6.4 million people, which committed to joining the eurozone back in 2007 but faced years of delays—most recently due to post-pandemic inflation and Russia’s invasion of Ukraine.