logo
Bulgaria is close to joining the euro currency but faces disinformation and fear

Bulgaria is close to joining the euro currency but faces disinformation and fear

Washington Post03-06-2025
SOFIA, Bulgaria — Bulgaria is close to realizing its decades-old goal of joining the euro currency union and deepening ties with the more prosperous countries of Western Europe. But the government faces a populist backlash against the shared currency on the eve of a key decision by European Union authorities.
Fears of inflation, poverty and the unknown are mingling with disinformation spread on social media that aims to turn people against the euro. The discontent tracks with increased support for populist and anti-EU parties across Europe, which is exploited by nationalist and pro-Russian politicians in a country that remains one of Europe's poorest and most afflicted with corruption.
'Adopting the euro will make us feel the threshold of poverty. After all, prices will be in euros,' said 78-year-old retiree Tanya Ignatova.
'Bulgaria is not ready for the euro. Someday we may be ready, but not now,' said another retiree, Mario Georgiev.
Several thousand people rallied against the euro in the capital on Saturday, urging a referendum on whether to transition from the lev currency to the euro. The head of the pro-Russian Varazhdane party, Kostadin Kostadinov, told the crowd that 'Bulgaria has risen and declared: Freedom, we choose the Bulgarian lev!'
Others in Bulgaria say the country already benefits from EU membership and it does not matter what the currency is. 'We have inflation now and we will have it in the future,' said 26-year-old Konstantin Bozhinov.
Aiming at deepening European integration amid growing geopolitical tensions, the government is pressing ahead. It has asked for a review of whether it meets the requirements of low inflation, sound government finances and legal conformity to EU institutions. On Wednesday, the European Commission will announce the results.
If the commission gives a green light, other member states will decide on Bulgaria's candidacy in the coming weeks.
At the last review in 2022, Bulgaria failed on the inflation requirement. Inflation has since fallen.
President Rumen Radev has encouraged the anti-euro voices by proposing a referendum on the currency, citing public concerns over inflation and purchasing power. That followed a protest in February that saw the offices of the EU's executive commission in Sofia spattered with red paint and its entrance set on fire.
The president's proposal was turned down by the pro-European majority in parliament, which accused Radev of acting in favor of Russia with his last-minute attempt to sabotage the euro adoption.
According to the EU's multi-country Eurobarometer survey released last week, 50% of Bulgarians are against the adoption of the euro, while 43% are in favor. In contrast, trust in the euro continues to grow across the rest of the EU.
Bulgaria joined the EU in 2007. It has been plagued by political instability and corruption that have fueled euroscepticism among its 6.4 million citizens. Analysts say disinformation campaigns from abroad have fed fears of economic changes that could bring more poverty.
Scores of false claims by opponents of the eurozone have been published on social networks. One claim says the EU plans to take away people's savings if they fail to spend them within a certain period. Another claims that plans to introduce a digital version of the euro are part of a plan to control everyone.
'There is a powerful brainwashing of the average Bulgarian. Illusory fears are being spread, lies are being told wholesale, unscrupulously and brazenly,' said Ognyan Minchev, director of the Institute for Regional and International Studies in Sofia.
Economists say joining the euro will not bring massive change to Bulgaria's economy in the short run. That's because the government has pegged the currency to the euro by law, at a fixed rate of 1 lev for every 51 euro cents.
Joining the euro can bring lower borrowing costs, greater ease in comparing domestic and foreign prices and no need to exchange money when vacationing in another euro country. More than that, it's a sign of integration into the EU and its large economy. Members get a seat on the European Central Bank's interest rate-setting committee.
Countries agree to join the euro when they join the EU, but so far 20 of 27 members have taken the step. Croatia was the last to join in 2023.
Bulgaria's government has very little debt, at 24.1% of GDP — the second lowest in the EU and well below the 60% level in euro membership criteria. That's a sharp contrast to its neighbor, Greece, which entered the euro in 1999 with high debt that was concealed through complex financial transactions. Greece's broken finances eventually triggered a eurozone-wide crisis.
Bulgaria's government has been 'fiscally super conservative ... the risk of Bulgaria becoming a fiscal risk to the eurozone is essentially zero,' said Zsolt Darvas, senior fellow at the Bruegel think tank in Brussels.
Fears of inflation are not entirely without basis. Experience in other countries shows that 'whenever there is a changeover from national currency to the euro, there is often a minor inflation effect, but it's typically less than 1%,' said Darvas
Economists say a one-time increase occurs as service providers such as restaurants, which don't adjust prices as often as other sectors, take advantage of re-doing menus and price lists to implement hikes.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Tuesday Briefing: Trump's Tariff Leverage
Tuesday Briefing: Trump's Tariff Leverage

New York Times

time27 minutes ago

  • New York Times

Tuesday Briefing: Trump's Tariff Leverage

Trump's trade deals aren't just about tariffs As dozens of countries race to reach trade deals with the U.S. ahead of a Thursday deadline, President Trump has embraced a strategy that goes beyond the usual focus on markets and deficits: He's demanding multibillion-dollar investments in the U.S. The president's tactics echo his 'Art of the Deal' approach. He is using economic leverage to essentially force trading partners to show him the money or face astronomical tariffs, my colleague Alan Rappeport writes from Washington. To trade experts, the commitments raise the question of whether Trump is negotiating with trading partners or trade hostages. Here are a few examples. To secure a lower tariff rate in its deal, South Korea agreed to make $350 billion in investments in the U.S. and buy $100 billion of liquefied natural gas. The E.U indicated that it would buy $750 billion of American energy and that its companies were poised to invest at least $600 billion. Japan said it would establish a $550 billion fund for investments in the U.S. Trade experts cautioned that focusing on the eye-popping investment figures might be premature. Tariffs are easier to enforce than investment and purchase commitments, and their vague nature suggests that countries might be looking for creative ways to escape Trump's tariffs. Some of the pledges appear too big to be true, and many of them lack specifics. More tariff news: India: The foreign ministry said Trump's threat of additional tariffs was 'unjustified and unreasonable' and vowed to 'take all necessary measures' to safeguard India's interests. Malaysia: The country's solar panel industry, which was decimated by tariffs under the Biden administration, provides a warning for the region. A huge pay package for Musk Tesla said yesterday that it had granted Elon Musk roughly $29 billion worth of stock to help retain the billionaire chief executive after a judge struck down his previous multibillion-dollar pay package. Want all of The Times? Subscribe.

Unlocking Opportunities with ISACA AAIA: Your Path to IT Audit Excellence
Unlocking Opportunities with ISACA AAIA: Your Path to IT Audit Excellence

Time Business News

time2 hours ago

  • Time Business News

Unlocking Opportunities with ISACA AAIA: Your Path to IT Audit Excellence

In an era defined by rapid technological transformation, staying current in the IT audit profession demands more than traditional knowledge. It requires continuous adaptation to new technologies and risks—especially those involving artificial intelligence. The ISACA AAIA certification (Artificial Intelligence Audit Certificate) is designed to meet this need. As organizations increasingly integrate AI into their systems and decision-making processes, the ability to audit these systems effectively is becoming essential. The AAIA credential signals that an IT professional is prepared to assess AI models not only for performance but also for accountability, transparency, and compliance—cornerstones of modern auditing standards. The ISACA AAIA is more than a niche certificate—it's a response to the accelerating use of AI in critical business functions. Traditional IT audit credentials cover cybersecurity, risk, and assurance, but they rarely dive deep into artificial intelligence. The AAIA fills this gap by focusing on the distinct and emerging challenges of AI auditing. It empowers professionals to evaluate AI through a lens of governance, control, and compliance, ensuring these technologies are deployed responsibly and safely. ISACA is a globally respected authority in IT governance and audit, and the AAIA builds on that reputation with content that is both timely and technical. Unlike general AI courses that teach how to build models, AAIA emphasizes the auditor's role in ensuring that AI systems operate ethically, within legal boundaries, and in alignment with organizational risk appetite. This makes the certification highly relevant in industries such as finance, healthcare, and government, where compliance is as important as innovation. As artificial intelligence becomes embedded in customer service platforms, financial risk assessments, logistics planning, and countless other areas, the risks associated with its use grow significantly. Concerns about algorithmic bias, lack of transparency, and unintended consequences have placed AI in the regulatory spotlight. Governments and oversight bodies are already crafting legal frameworks—such as the EU's AI Act—that will require businesses to demonstrate due diligence in how AI is developed and used. In this context, AI auditing is not just a best practice but an emerging requirement. Businesses must be prepared to explain how their algorithms work, what data was used to train them, how outcomes are validated, and whether safeguards are in place to prevent discriminatory or harmful results. Professionals who can carry out these audits bring immediate value to their organizations. The AAIA credential prepares individuals to meet these demands, combining established audit principles with AI-specific knowledge and application. The AAIA certification is well-suited to a range of professionals who are either currently involved in IT auditing or aiming to expand their scope into AI oversight. IT auditors, compliance officers, risk analysts, and cybersecurity specialists will find this credential particularly beneficial as it enhances their ability to work with emerging technologies. It is also valuable for AI developers and data scientists who want to understand the governance and audit expectations around the systems they create. For those already holding certifications such as CISA, CRISC, or CDPSE, the ISACA AAIA serves as a strong complement, reinforcing their expertise with a future-ready specialization. As industries shift toward automation and data-driven operations, having the skills to audit AI systems will open doors to leadership roles in both internal audit functions and external consulting engagements. The AAIA curriculum delivers a robust framework for understanding and auditing artificial intelligence systems. It begins with a foundation in AI governance and explores how ethical considerations, such as fairness and accountability, must be integrated into system design and evaluation. Candidates study the AI lifecycle, learning to identify risks and assess controls at each phase—from data collection and model training to implementation and monitoring. The course emphasizes the importance of transparency in AI, helping auditors evaluate how well systems can explain their decision-making processes. Understanding how to construct and assess AI-specific control objectives is also a key component, along with recognizing data integrity issues that could impact model reliability. Students are introduced to global regulatory standards and compliance requirements, giving them the tools to ensure AI systems meet legal expectations. In addition, the program explores how AI can enhance internal audit capabilities, helping professionals understand its use in fraud detection, predictive analytics, and process automation. Achieving the ISACA AAIA certification marks a significant advancement in one's professional credentials. It distinguishes the holder as someone with the knowledge and readiness to audit one of the most complex and consequential technologies of the modern age. In a competitive job market, this edge is invaluable. Employers across industries are seeking professionals who not only understand technology but can also evaluate its risks and verify compliance in an increasingly regulated environment. The AAIA opens new pathways in AI risk management, compliance consulting, and governance leadership. It can lead to higher compensation, greater job security, and access to opportunities at the intersection of IT and innovation. As organizations grow more dependent on data-driven automation, the demand for certified AI auditors will only rise. Holding this certification shows that you can bridge the gap between business strategy, technical systems, and regulatory oversight. The trajectory of artificial intelligence is clear: more adoption, more integration, and more scrutiny. As AI becomes central to strategic decision-making, its impact must be measured not just by efficiency, but by safety, ethics, and legality. Regulators are taking notice, and enterprises must be ready. Professionals certified in ISACA AAIA will be at the forefront of this shift, leading AI audit projects, advising on governance frameworks, and guiding organizations toward responsible innovation. In the coming years, AI auditing will evolve from a specialized task to a standard expectation. Those who prepare now, through certifications like the AAIA, will be best positioned to influence and shape how AI is used across sectors. Whether in corporate audit teams, independent assurance firms, or regulatory agencies, AAIA holders will have a crucial role in ensuring that AI serves the public and corporate interest responsibly. To earn the AAIA credential, candidates must complete ISACA's official training program and pass a comprehensive exam. The course is designed to accommodate working professionals with flexible, self-paced modules covering both theory and real-world application. While there are no mandatory prerequisites, familiarity with IT auditing, cybersecurity, or data governance is helpful for mastering the material. The exam tests a candidate's ability to evaluate AI systems from an audit perspective, covering governance structures, risk identification, compliance obligations, and performance validation. Upon completion, professionals will not only hold a valuable certification but also gain the confidence and knowledge to handle AI audit responsibilities in dynamic environments. The ISACA AAIA certification represents a major step forward for professionals aiming to lead in a digital-first world. As AI becomes central to how organizations operate, the ability to ensure its responsible use will define the next generation of auditors and risk managers. This credential is more than a professional milestone—it is a mark of trust, expertise, and relevance in one of the most urgent areas of modern technology. With AI continuing to transform industries, the need for certified professionals in AI auditing is not a passing trend—it's the new standard. By earning the AAIA, you're positioning yourself to unlock opportunities, drive accountability, and help shape the future of ethical and effective artificial intelligence deployment. TIME BUSINESS NEWS

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store