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As soon as the Euro becomes our official currency, all the prices will be changed from "leva" to "euro". For example, what has cost 1 lev, will cost 1 Euro.
That is preposterous, as supposedly 1 EUR = 1.95 BGN. Can you provide some backing for that statement?

Also, Bulgaria will not automatically join the Euro. The latest 10 member states have not done so as they don't yet fulfill the necessary macroeconomic conditions, so how can Romania and Bulgaria join immediately?

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Migeru (migeru at eurotrib dot com) on Mon Mar 6th, 2006 at 07:21:53 AM EST
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Dear Migeru, a backing for my statement would be the case in Germany and Austria. There, as soon as the Euro became the official currency and replaced the Deutsche Marc and the Schilling, the prices in the cafes were just changed to Euros. So, something that cost 1 Marc or 1 Schilling, would cost 1 Euro!
I do not necessarily claim that this will happen in Bulgaria as well, but this is my presumption. It does not happen everywhere, but as you can see in the examples from Germany and Austria, it can happen.
Regarding your second remark, I do not expect that Bulgaria and Romania will join immediately the Union. Actually, if you have read my comment carefully, you can see that I do not think that Bulgaria has the necessary macroeconomic conditions. Rather, I think that neither the Bulgarian public, nor its politicians are ready for this accession and its consequences.
by hitchhiker on Mon Mar 6th, 2006 at 10:37:17 AM EST
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Ok, I agree that the prices of small items will be inflated. In Spain what used to cost 100 pta would have gone to costing €0.60, and it did... but at the earliest opportunity prices tended to go up to €1. Large prices stayed the same, with all necessary rounding done up, obviously.

However, considering that it will take 5, maybe 10 years after accession for Bulgaria to be ready for the Euro, I find backing this

They are too afraid that this accession will have negative consequences on the standard of living.
with the possibility of price-gauging by unscrupulous vendors a little disingenuous. If accession will have a negative impact on the standard of living, it won't be because of the Euro.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Mon Mar 6th, 2006 at 10:50:13 AM EST
[ Parent ]
Dear Migeru, certainly if the accession has a negative impact on the standard of living, it will not be only because of the Euro. Rather, I argue that with an unstable economy like the Bulgarian, the change of currency may lead to a difficult period.If Bulgaria has the necessary macroeconomic conditions,as you have suggested, the adoption of the Euro will not have a negative impact, especially in the long run. However, my argument is based on the conviction that the Bulgarian economy is not ready yet to sustain this change of currency.And even if only the prices of small items are turned directly into Euros, it may be a problem, at least in the short run.
by hitchhiker on Mon Mar 6th, 2006 at 12:14:36 PM EST
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But the Euro won't be introduced for at least 10 years after accession, given the macroeconomic conditions. The Euro has nothing to do with whether or not accession is a good thing.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Mon Mar 6th, 2006 at 12:31:05 PM EST
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Footnote on this discussion: a way to stop the up-roundings was invented and just implemented by Slovenia: to force sellers to show prices in Euro and Tolar years before adopting the currency.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Mon Mar 6th, 2006 at 07:04:55 PM EST
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