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Bulgaria readies to adopt the euro, nearly 20 years after joining EU

BULGARIA - Bulgaria was preparing to switch to the euro on Wednesday night to become the 21st eurozone member, amid concerns the move could usher in higher prices and add...

Times of Suriname

to political instability rattling the Balkan country. At midnight (2200 GMT Wednesday), Bulgaria will wave goodbye to both 2025 and its lev currency, which has been in use since the late 19th century. While successive governments in the country of 6.4 million people have advocated joining the euro currency over hopes it will boost the economy of the EU's poorest member, reinforce ties to the West and protect against Russia's influence, some have been opposed to the switch. Bulgaria, which joined the EU in 2007, faces unique challenges, including anti-corruption protests that recently swept a conservative-led government from office, leaving the country on the verge of its eighth election in five years.

Outgoing Prime Minister Rossen Jeliazkov said on Tuesday that he nonetheless felt his cabinet had accomplished a milestone. "Bulgaria is ending the year with a gross domestic product of 113 billion euros (nearly USD 133 billion) and economic growth of more than three percent, which places us among the top five countries in the EU," he said before a government meeting. He added that inflation in the Black Sea country, which hovers around 3.6 percent, was "linked to increased purchasing power" and a less corrupt economy, and not in any way to the introduction of the euro.

Some Bulgarians worry the introduction of the euro could lead to price increases. Those fears were fuelled in part by a protest campaign that emerged this year to "keep the Bulgarian lev", which tapped into a generally negative view of the single currency among much of the population. According to the National Statistical Institute, food prices rose by five percent year-on-year in November, more than double the eurozone average. "Unfortunately, prices no longer correspond to those in levs, 40 levs is not 20 but 30 euros for certain products," pastry shop owner Turgut Ismail, 33, told AFP, saying that prices have already begun surging. (Bssnews)

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