Steve Hanke Warns: Eurozone Entry Could Be a Mistake for Bulgaria!

Steve Hanke, known as the "father" of the Bulgarian Currency Board, recently shared his insights on Nova TV. Hanke, who has been honored with eight honorary doctorate degrees—including three in Bulgaria—has served as an economic advisor to various heads of state and was a senior economist under President Ronald Reagan. In 2018, he was named one of the 25 most influential people globally by World Trade Magazine. During the interview, he discussed Bulgaria's ranking in his "Misery Index."

Hanke's survey of 157 countries last year placed Bulgaria at 117th, indicating a relatively poor economic situation. He noted that the countries with the highest misery levels are Argentina, Venezuela, and Lebanon, while those performing best include China, Malta, Switzerland, Japan, and Thailand. The index considers unemployment rates, giving double weight to this factor, alongside inflation and bank loan interest rates.

Looking ahead, Hanke predicts an improvement in Bulgaria's position due to a significant drop in inflation. "I believe Bulgaria will rank better than it did in 2023," he stated.

However, Hanke warned that Bulgaria's entry into the Eurozone could lead to dire consequences. He highlighted a divide between the political elite advocating for euro adoption and the general population, which prefers to maintain the lev and the existing currency board system. "Public opinion favors keeping the lev because it works; changing it would be unwise," he argued.