Euro adoption moves further away

The Bulgarian authorities have stated that, for the time being, the procedures for joining the euro will be postponed in view of the turmoil in Greece. The European institutions' very poor handling of the Greek crisis has led to the conviction that the conditions for joining the euro area are not currently in place. Euro adoption would certainly have an excessive impact on Bulgaria's real economy. The favourable growth outlook could come to an abrupt halt with the euro: the single currency's strict budget constraints and the enormous income differences between rich and poor countries could only destabilise the country. Investors view Bulgaria with confidence, provided that structural problems are resolved in the coming years and growth prospects remain firm.