Tags: clear entering January heres
| As it was clear a long time ago, but it is still a pity – Bulgaria will not join the euro from January 1, 2025. This happens for one main reason – the inflation criterion, according to which inflation should be at most 1.5 percentage points higher than that of the “best performing countries” – a rather opaque criterion, but mostly – totally inappropriate for our time. Atanas Pekanov, former deputy prime minister, wrote this on Facebook. “It may have been appropriate to measure the inflation benchmark by an absolute difference of 1.5 percentage points to the so-called best performing member states in other periods – when inflation was relatively low everywhere. But it doesn’t make much sense to measure like that after the biggest inflationary shock in the history of the euro and the period of the biggest differences (standard deviation) in inflation between member countries in history… A bunch of current member countries couldn’t enter the eurozone under this criterion today. This at least gives us a little more time to debunk the completely stupid argument that participation in the Eurozone automatically and necessarily leads to an increase in debt. Currently, some of the more indebted countries that have often been claimed to be “bankrupt” (whatever that means) – for example Greece, Cyprus and Portugal – are experiencing the fastest and largest reductions in government debt to GDP documented at all…“, he also writes. |
