Bulgaria has committed to a series of banking sector reforms that should allow the country to join the Eurozone.
In a brief statement by the head of the Eurogroup Mario Centeno on Tuesday, the press was informed that Bulgaria has take a series of “prior commitments” to enhance the transparency of the banking sector.
Bulgaria meets the nominal criteria to adopt the single currency, that is, low inflation and sustainable debt levels. However, as the EU’s poorest country and challenged by widespread corruption, there have been concerns over joining the Eurozone.
Should the banking sector pass the test of external oversight, Sofia should be able to move closer to the ERM-2 exchange rate mechanism, as well as the Banking Union. Politically, joining the Banking Union has become a prerequisite for Bulgaria to join the Eurozone.