Bulgaria Gets Green Light for Eurozone

dany said:

Interesting development
I've actually been considering Bulgaria as a base for a while, mainly because of the flat 10% corporate tax and relatively low cost of living. If the Eurozone accession goes through in the next year or so, that could really change the playing field, especially in terms of banking.

Right now, the banking system is decent but not always ideal for international use.
Full integration into the Eurozone could make cross border payments smoother and possibly improve the country’s perception for compliance heavy partners like Stripe, Wise, etc.

That said, I’m curious how this will affect the local advantages, will the 10% tax rate remain, or will Brussels start pushing for alignment?
Same goes for company registration: will it become more regulated, or stay as friendly as it is now?

Would be great to hear from anyone on the ground or already using a Bulgarian setup, what’s the general mood?

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If they adopt the Euro, then I think taxes will definitely rise. As they will have no other choice to bring in money once s**t hits the fan. It is going to be an absolute disaster I don't think people realise tbh. Prices double, wages only up 20% at best.

ArcRaptor said:

Bulgaria will lose a lot of flexibility after adopting the euro. The currency board kept politicians in check for years. Once it is gone, nothing will stop them. There is a real risk that fiscal discipline will disappear too. Prices will go up. Maybe not right away in official numbers, but the market will push them higher. This already happened in Croatia

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Yup, access to cheap eurozone credit that will not be monitored and will just end up in politicians bank accounts.

The only ones cheering it on are either politicians, EU funded, or Bulgarian NPCs.

Marie Manila said:

I don't understand why everything should become more expensive in Bulgaria with the introduction of the euro?
AFAIK the BGN has been pegged to the EUR (or Deutsche Mark at the time) since 1997.
So, what is the difference between the current situation and the situation after the rollout of the euro in Bulgaria?
Please enlighten me!

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Aside from "rounding errors" by businesses, the main issue is under the currency board Bulgaria cannot print money and is restricted from taking on excessive debt. Foreign reserves must back every lev in circulation. This forces discipline.

After euro adoption, Bulgaria gains access to cheap ECB credit, and politicians can borrow far more. But if that borrowing does not lead to productivity gains, and is instead wasted or siphoned off through corruption (what do you think will happen in Bulgaria?), it creates monetary inflation. More money chasing the same goods = higher prices.

You also have the issue of the country being a low-export one. The euro is designed for export giants like Germany, not Bulgaria. So your economy inflates, but your exports don’t grow fast enough and you run trade deficits, and your debt becomes harder to service.

Check back here in 1 or 2 years to see how fucked it up gets there.

What makes it even sadder is that the people don't want it,zero democracy in the EU. It will take a massive protest to stop it. These politicians operate without any fear of reprisal. There is no consequence for their actions. If you started coming out of your office and seeing your colleagues hanging from lamp posts, it might make you think twice about who you actually work for - the people or the globalists.