The creation of the euro is a mistake and Bulgaria should not join the single European currency, Professor Steve Hanke, the father of the currency board in Bulgaria, told the BNR.
Hanke criticised the legal amendments proposed by the Chairperson of the Budget committee Menda Stoyanova. The law states that after BG accession to the currency mechanism preceding the eurozone, the exchange rate is negotiable. However, Parliament has mandated the cabinet to negotiate only on condition that the EUR-BGN ratio is maintained until our entry into the eurozone.
"This is very dangerous. Stoyanova and the others rushed into a matter they do not completely understand. We are talking about the financial and economic arguments behind the board. Apparently they do not realise how dangerous it is to play with the exchange rate and raise this question at all, "said Hanke and added a “collusion” could not be excluded which would set "discriminatory conditions" for Bulgaria's accession to the eurozone.
Hanke himself reiterated the thesis that there is no need of exchanging the fixed rated lev with the euro, because through the board our country is practically benefiting from the positives of the eurozone.
"There may be some secret agreement between Bulgaria and the European Union on this issue. Collusive agreements are typical of the European Union and I do not exclude the existence of such, under which additional conditions are imposed on Bulgaria and it requires changes that no one has raised the question about so far, "he said.
The Budget Committee chairperson Menda Stoyanova was contacted to comment on the concerns expressed by Prof. Steve Hanke for a possible "collusion". Through GERB press centre she declined the invitation to reply with the argument that she, as a legislator, is not in a position to make such comments.
