High-level Conference in Sofia Discusses Bulgaria’s Membership in European Stability Mechanism and Participation in Euro Area Financial Architecture
Photo: Ministry of Finance
‘Bulgaria’s becoming the 21st member of the European Stability Mechanism is an important milestone for us, with full integration being a crucial step in our economic development. Joining this mechanism brings peace of mind, as it is a tool that can be relied on, if needed. It is first and foremost a responsibility, i.e. to make efforts to maintain sustainable and sound finances.’ This is what Prime Minister Rumen Radev said upon opening the high-level conference ‘Building Resilience Together: Bulgaria’s ESM Membership’.
The main focus of the forum organized by the Ministry of Finance and the European Stability Mechanism (ESM) was Bulgaria’s membership in the Mechanism and its importance for the country’s participation in the financial architecture of the euro area.
In his address, Prime Minister Radev stressed that ESM membership was a recognition of Bulgaria’s efforts so far and that it outlined Bulgaria’s prospects in the Economic and Monetary union. ‘We are working to address the challenges related to the deficit and to return to a sustainable financial system, strengthen the rule of law and the legislative framework, and to reap the benefits of euro area membership’, he added. Mr. Radev said that we would also rely on the ESM to ‘take the place we deserve as a country that is constructive, active and with solutions for the future of the EU. We need this stability. We will seek expert support for 2 important things – public-private partnerships – so as to mobilise private capital for building critical infrastructure, as well as to mobilise funds in a different dimension in order to unlock this potential so as to make Bulgaria a strategically important place for Europe’s stability and future’.
For his part, Deputy Prime Minister and Minister of Finance Galab Donev stressed that after the accession to the euro area, Bulgarian citizens and businesses noticeably felt greater stability on the Bulgarian markets and had greater trust in the institutions and in the fiscal stability. ‘Investment has almost doubled since last year. We have stable economic growth which is higher than that of the euro area members – 2.8-2.9%, i.e. almost 3 times higher, but inflation has risen by 5.1% on an annual basis. This poses challenges that we need to address’, the Finance Minister said. Mr. Donev also drew attention to the upgrade of the credit rating by the international rating agencies: ‘The markets appreciate that Bulgaria has a stable regular government and parliamentary majority. These results give sustainability and predictability to the policy in Bulgaria. We have a path with a clear perspective, with a clear programme that is made public, with priorities in key areas’.
ESM Managing Director Pierre Gramegna, a special guest at the event, congratulated Bulgaria on becoming a member of the European Stability Mechanism. ‘Joining the ESM means benefiting from European solidarity, created to safeguard financial stability in the euro area and help prevent financial crises,” Mr. Gramegna said. ‘With ESM membership, Bulgaria has also taken its place at the table, participating fully in the decisions of the euro area’s financial safety net.’
The President of the Eurogroup and of the ESM Board of Governors Kyriakos Pierrakakis also addressed the participants through a video message.
The Conference provided an opportunity for an exchange of views among representatives of European and national financial and economic institutions, academia, the non-governmental sector, the media and investors on the euro area’s readiness to face current and future macroeconomic challenges in a context of increased economic uncertainty, as well as on policies to strengthen resilience, competitiveness and economic growth.