Ministry of Economy survey asks businesses if they are ready for the adoption of the euro

Bulgaria’s Ministry of Economy and Industry has released an anonymous survey to businesses asking if they are ready for the euro. The aim is to summarise the results and identify the problems businesses are having from switching from one currency to another.

The ministry is asking is how much it will cost a company to change its software so that its accounts are kept in euros. For about five months, prices for goods and services in the country will have to be in both currencies - the lev and the euro. The question is whether companies have the ability to do so. An additional challenge for businesses will be that people will be able to pay in one of the two currencies of their choice.

Among the advantages that the ministry finds is that perhaps companies will save transaction costs because of the switch to the European currency.

It is also interested in companies' recommendations so that the transition is as smooth as possible.

Bulgaria is currently in the so-called waiting room for the euro zone - the ERM 2 exchange rate mechanism. By a decision of the Parliament, Bulgaria has accepted that it will adopt the euro from 1 January 2024. At the moment, however, Bulgaria is not ready, including institutionally, for this step. It also does not meet all the Maastricht criteria for euro zone accession. The country’s inflation rate is above the permitted rate.

Less than a month ago, the Governor of the Bulgarian National Bank (BNB), Dimitar Radev, warned that Bulgaria is seriously delayed in implementing the euro zone accession plan. He urged MPs to hurry up if we want to meet the deadline. Otherwise, we will not be able to adopt the European currency within the deadline we have set.