The average inflation for the past year is 9.4% instead of recommended 3.2%. This is one of the unfulfilled criteria because of which European Central Bank consider us not ready to introduce the Euro, points out the report of the institution. On the second place is the exchange rate.
Yesterday the General Council of the European Central Bank accepted a “Report for rapprochement 2008”. This is a regular document which is worked out and published once every two years for assessing the economical progress and synchronization of the legal frame of the member states of the European Union, which have not yet introduced Euro as their national currency to stop
The document estimates the progress of Sweden, Slovakia, Poland, Hungary, Czech Republic, Lithuania, Latvia, Estonia, Bulgaria and Romania. Our country is included for the first time. Bulgaria doesn't suit two requirements for introducing the euro, was noted in the report. It was mentioned in the report that in 2003 the inflation rate was 2.3% and had reached up to 7.6% in 2006 and 2007. The prognosis is that the high levels of inflation will remain around 10% this year. It is quite possible the inflation to be reduced to 6% next year by achieving higher economical growth. The aim of that report is to assess the advance of the countries and to present the results to the European Central Bank for the readiness of those of them, which have declared their intention to introduce the Euro. In the cells, Slovakia has been scrutinized and assessed with a view to its desire to introduce the Euro from January 1, 2009.
European union’s pretty dear consists of four, oriented towards achieving curve economical stability conditions, stability of currency rates and convergence of long-term percentage of rates. National legislation of the monetary questions should also be in correspondence with the agreement for EU.
In its part about Bulgaria, the report has been developed on the given information at all levels from Bulgarian side. The document has represented the dynamics of the most important macroeconomic indicators for the period of European membership of Bulgarian till March 2008, as well as retrospection of the indices linked to Maastricht criteria (inflation, budget deficiency towards BVP, national debt towards BVP and long-term percentage of rates).
The significance of executing rather strict fiscal policy for reducing off inflation and macro economic disproportions he has been underlined to create conditions for stable rapprochement. Particular recommendations have been given for carrying out structural reforms as well as the legal integration of Bulgarian National Bank in the euro system. The “Report for rapprochement 2008” has been published on the Internet page of the European Central bank, that is www.ecb.europa.eu.