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Scholars Day: April 7, 2010

Prospects of Introducing the Euro in Bulgaria: Lessons from Greece

This research project investigates the prospects of introducing the Euro in Bulgaria. The example of Greece as an assimilator of the common European currency is used as a comparison framework. Greece itself faced a lot of challenges prior to joining the Eurozone. Having similar problems, namely a large current account deficit, Bulgaria can learn a lot from Greece in this respect. Statistical data from the central banks of both countries and the European Central Bank are utilized. A preliminary data analysis indicates deteriorating Bulgarian economy with regard to the convergence criteria outlined in the Maastricht Treaty. Compensating for the growing trade deficit by attracting increasing direct investment is discussed as a feasible strategy for ameliorating the observed negative trends. The differences and similarities in the recent economic policies of both countries are outlined to provide explanations for Bulgaria’s deteriorating chances to adopt the Euro within the projected timeframes.

Presenter: Irena Pavlova (Undergraduate Student)
Topic: Economics
Location: 120 Hartwell
Time: 10:45 am (Session II)