Expert puts unilateral euro adoption back on the table

   Bulgaria is on course to meet all euro convergence criteria and if it is not

admitted into the (ERM-2) exchange rate mechanism, it should adopt the single currency unilaterally,

said Georgi Angelov, an economist with the Open Society Institute.

Speaking at an international discussion on reforms in new EU members on October 19, Angelov said that blocking Bulgaria’s access to ERM 2 , the two-year currency stability test before the country can drop the lev and adopt the euro, would be a violation of Bulgaria’s EU Accession Treaty and would pave the way for unilateral adoption.

Adding to the list of formal Maastricht criteria, Bulgaria was recently unofficially set another requirement  - of assuaging its current account gap before it could seek an ERM entry, according to Angelov.

Several economists approached by Dnevnik sided with Angelov but they only spoke on condition of anonymity. Government officials declined to comment.

Earlier this month, Deputy Prime Minister and Finance Minister Simeon Dyankov said that Bulgaria should apply to join the currency mechanism at the end of January 2010.

Former deputy finance minister Lyubomir Datsov predicted that before giving the green light for an ERM II entry, the European Commission (EC) will wait and see whether the efforts of Bulgaria’s new Government, led by right-of-centre political party GERB, to counter the crisis are bearing any fruit and if pledged reforms are being implemented.

            Source: sofiaecho.com