Losing control of the currency will result in all domestic manufacturing to become more expensive (therefore incapable to compete with higher quality German goods), and all manufacturing capabilities will disappear in favour of the most cancerous form of industry, tourism. Like what happened to Greece and Portugal.
All it takes is for one chain to round prices down (1-2¢ isn't going to be an issue for them), advertise this, and gain many new customers.
The markets are only efficient on paper ;)
It’s also funny to see how anti everything related to EU/Europe most of the tech people are. You can see this here, like most of the comments that now proclaim the death of Bulgaria or Germany bailing them out, from people that have no clue on the background and history of this move.
Moreover, Bulgaria does not directly compete with Germany in the same product categories. Bulgaria is integrated into supply chains, often providing components or assembly work for German companies.
You are only 7M. I’ve got the feeling that it is just not large enough to significantly be distorted by eurozone monetary policy, at least in the way that might affect much larger economies.
This is objectively wrong, since Bulgaria currently had 0 control over its currency, where joining the eurozone, they’ll have a vote at the table
Studying the root causes of the two world war would certainly enlighten
And if you (or the first comment author) had read the article, then you would immediately have identified the problem with the comment.
Apparently, they did not use that control in the last 26 years.
aorth•7mo ago
https://apnews.com/article/bulgaria-euro-protest-nationalist...
windowshopping•7mo ago
akmarinov•7mo ago
petre•7mo ago
Bulgaria has a pegged currency to the Euro since forever, they got quite depopulated after 1991 and their only chance is to become a tourist destination and to attract some investments from Türkye and maybe Greece, because nobody else would invest. The fact that Romania isn't interested in builing more bridges over the Danube and that Serbia isn't part of the EU also puts the northern part of Bulgaria in a tight spot. If you want to see what a depopulated country looks like, travel through northern Bulgaria. It looks like the descriptions from the book The World Without Us.
LfLxfxxLxfxx•7mo ago
akmarinov•7mo ago
Also a referendum on the topic was ruled illegal, because it’ll violate the EU accession, where EU adoption is mandatory when criteria are met.
Also it’s too late now, it all depends on two votes on the 8th of July by the ministers of finance and the EU parliament. Bulgaria has no way of pulling out now, without doing massive damage to their EU integration, credit score and investors’ interest.
t0bia_s•7mo ago
akmarinov•7mo ago
Alt right politicians mostly want a referendum against the euro specifically, so that they can get points when the main parties can’t deliver it, they don’t want to exit the EU.
t0bia_s•7mo ago
We have demonstrations about every month for calls to reform EU structures or leave EU in current bureaucratic form.
saturn_vk•7mo ago
bigbadfeline•7mo ago
Here is something more important - having your own currency and its associated banking infrastructure serves as an insurance against applying financial pressure to the country, such as stuffing non-repayable loans down the country's throat and then gorging on indefinite loan extensions with high interest rates and amounts - a strategy used so many times but mentioned so very rarely.
Case in point - Greece, that happened to them right after they went all in on the euro and killed their drachma.
It might be that Bulgaria has been tied up to the conveyor belt already and there is no way out of the slaughter house, I don't know the case enough to judge, but in principle, the EU would work much better as a customs union, politicizing it has proven to be a dirty affair.
Putin Putin aside for now, he's irrelevant anyway.
dzhiurgis•7mo ago
bigbadfeline•7mo ago
But you started a very interesting topic - who is more at fault in the case of under-performing loans - the lender, the borrower, or is it 50-50?
Greek's borrowing binge was a drug shot in the arm, when they woke up, they found their shipbuilding industry gone... to the new EU members like Poland who sold cheaper and without tariffs within the EU. The Euro made Greek's recovery impossible.
Unintended consequences or something else? Another interesting topic that applies to many cases besides Greece.
aorth•7mo ago
t0bia_s•7mo ago
Now we have strong push of digital euro with centralised regulations which is something that I would never agree with (privacy and economic concerns) and so I'm agianst adopting Euro in my country.
ibobev•7mo ago
t0bia_s•7mo ago
oliwarner•7mo ago
As a victim of Brexit, I'd love to undo that particular referendum, but I also understand the instability retrying big decisions would cause. Hungary joining the Euro has been on their cards since 2007.