Mihail Krastev: The signal is that Bulgaria is unable to manage its public finances – Economy

Mihail Krastev is a well-known economist, analyst, publicist and journalist, member of the Council on Economic and Public Policies.

Our inability to meet the criteria for joining the Eurozone, a direct consequence of the mismanagement of public finances in recent years, is not good news, even for people who do not support the adoption of the euro.

A number of official and regular cabinets loudly announced January 1, 2024 and January 1, 2025 as the dates on which Bulgaria will become part of the Eurozone.

Our inability to meet the basic 3% deficit requirement (something vital for every country in the Currency Board) and to bring our inflation down to normal for a European economy is an extremely bad signal to international markets and investors. The signal is that Bulgaria is incapable of managing its public finances and predicting their realization even in the short term, let alone the medium term.

The consequences of this failure are far more serious than the political clashes for or against the euro.