It's fixed to the Deutsche Mark. Which obviously became the Euro. I see this remark all the time; it's the main argument used by politicians, pro-European clowns etc., etc as it works, people can just about grasp this concept "Ah, we are already pegged to the Euro, how bad can it be"
Most people don't understand that︀ Bulgaria has a currency board that limits the amount of money one can have based︁ on foreign currency reserves. Thus, there's a hard limit on how much debt the government︂ can accrue, which is why Bulgaria has the lowest debt/GDP ratio in Europe.
Once the︃ Euro comes in, those controls are gone, so the government can borrow money in vast︄ quantities, and they will; government spending will skyrocket.
None of that money will translate into︅ productivity, leading to more inflation, and eventually, the debt will become unsustainable. Then you get︆ a Greece, Irish, Spanish, or Portuguese bailout.
It's unsurprising that politicians are the biggest proponents︇ of the Euro, as it will make them rich while the average Bulgarian gets poorer.︈
I can't believe the court said no to a referendum despite 400k signatures I hope︉ Bulgarians wake up; they will lose the two most important aspects of control - money︊ supply and interest rates. The public needs to get these clowns out of office and︋ get a statesman in there who wants Bulgaria to do well, which it can certainly︌ do with its own currency and strategic interests, not be some EU vassal.
