BRUSSELS – The European Stability Mechanism (ESM) has approved Bulgaria’s accession to the mechanism. This was confirmed by European Commissioner for Economic Affairs Valdis Dombrovskis during a press conference following the Eurogroup meeting. Dombrovskis highlighted that starting from 1 January next year, Bulgaria will adopt the euro, and the ESM’s decision marks a significant advancement in enhancing the resilience of Bulgaria’s economy.
ESM Chairman Pierre Gramegna stated that Bulgaria has expressed its intention to join the mechanism and will gain access to substantial financial protection starting next year.
The ESM is a fundamental component of the euro area’s financial stability framework, offering financial assistance to member states facing difficulties or financing risks.
Established by an intergovernmental treaty on 2 February 2012, the ESM commenced operations later that year. Headquartered in Luxembourg, the ESM acts as an intergovernmental organization under international public law, with euro area nations as its shareholders. It finances loans and assistance to member states by issuing debt instruments.
The European Financial Stability Facility, created in 2010, was succeeded by the ESM to provide loans under macroeconomic adjustment programs, purchase debt in both primary and secondary markets, offer precautionary financial support through credit lines, and finance recapitalizations of financial institutions by lending to governments within the mechanism.
During the Annual Dinner of the European Stability Mechanism in Luxembourg, Bulgarian National Bank Governor Dimitar Radev remarked that “Bulgaria is currently facing political tensions and public pressures. These dynamics are part of democratic life and spark intense public debate. However, despite these changes, the strategic orientation towards the euro remains intact.” Radev emphasized that the adoption of the euro demands both political responsibility and public trust, alongside technical readiness. (11 December)
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