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Steve Hanke: Inflation is rising in the eurozone, the Bulgarian people will lose

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Get rid of the secrets. There should be a series of studies, talk and public debate, as well as a referendum, the economist recommends

The Bulgarian people will lose if they join the eurozone. This will increase the risk of higher inflation. Why the Bulgarian society will want something that is risky – this is a political decision, commented to bTV the world-famous economist Prof. Steve Hanke, who introduced the currency board system in Bulgaria.

He also criticized the way in which the introduction of the euro was being addressed.

“This is the old approach of Borissov’s government, which was trying to do so – secretly from society,” the economist said. According to him, there is no economic analysis of the benefits and the price for society and the economy from the introduction of the euro, we need an analysis of the BNB and the Ministry of Finance.

“Get rid of the secrets. There needs to be a series of surveys, talk and public debate, and a referendum,” Steve Hanke recommended.

“Yes, you have a new government and I know that the coalition is discussing the introduction of the euro. But first let’s let the sun shine. Why would you want to change the currency board system, which works very well. Why abandon it and how exactly. Lithuania and Estonia are the countries with the highest inflation rates in the euro area – 16% in Lithuania and 15% in Estonia. inflation is only 10.5%, “said Prof. Hanke, who is a staunch opponent of the eurozone.

He is adamant that the risk of rising inflation is much higher if we adopt the euro and abandon the currency board.

“Does the Bulgarian public support this? No. About 60-70% of Bulgarians do not want to give up the currency board. It is politically unpopular in Bulgaria to do so. In addition, Bulgaria does not meet the criteria for joining the eurozone, why are you in a hurry. “The whole idea is crazy,” the economist said.

If you read the EU membership agreement carefully, it is your obligation to eventually join the euro, but it is not specified when. How would things develop if Bulgaria was in the eurozone and it collapsed?

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