Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), has expressed confidence that her home country Bulgaria will ultimately join the Euro zone, despite political obstacles that have hindered the nation’s bid for the past three years.
Speaking at a joint IMF and Croatian central bank conference in Dubrovnik, Georgieva emphasized that Bulgaria’s entry into the Euro zone is a matter of “when, not if”.
Bulgaria, alongside Croatia, entered the Euro-area’s waiting room, called ERM-2, in 2020. While Croatia successfully adopted the Euro in January, Bulgaria, a former Soviet satellite state in Eastern Europe, had to abandon its initial goal of joining the Euro zone by 2024 due to political turmoil.
Georgieva pointed out that Croatia’s more stable political environment, exemplified by the re-election of prime minister Andrej Plenkovic in the 2020 general election, played a significant role in the country’s successful transition. She stressed the need for political will and societal unity during challenging times, underscoring that such conditions can lead to favorable outcomes.
“The contrast between Croatia and Bulgaria shows that where there’s political will, and where society is united, even in the hardest times, a good outcome can be achieved,” Bloomberg quoted Georgieva as saying.
Georgieva also acknowledged the significance of Bulgaria’s currency board, which has ensured stability in the country, and reassured that no one desires to see it disappear. The Sofia-born economist said Bulgaria’s currency board “has anchored the stability in the country. Nobody wants to see the currency board go away.”
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