The financial system in Bulgaria is so distinct that there is no other like it in Europe.

A so-called currency board is in place that curbs the powers of the Bulgarian National Bank (BNB) considerably, but also exercises a rigorous financial discipline. But what is most important here is that the national currency, the Lev is pegged to the euro – at a rate of approximately two Leva a euro. Viewed from this angle, this means it makes no difference whatsoever what currency prices are set in or payments made in. In practice, however, that is not entirely true because no shopkeeper in a Bulgarian store would ever agree to accepting payment for any product in euros or in any other foreign currency. Only in Leva! In business relations things are somewhat different and each party can decide for themselves whether they prefer payment in euro or Leva.

Ten years ago, when Bulgaria joined the EU it signed the clause in the accession agreement that obligates the country to introduce the euro as a national currency once certain criteria and requirements are met. This has not been done to date, and as outgoing Finance Minister Vladislav Gortanov says, over these past 10 years the country has covered no more than 20 percent of its road leading to the Eurozone. According to the BNB on the other hand, in the space of one year, it will have tackled all pending bank problems that stand in its way to the Eurozone. In reality, the only asset the Bulgarian authorities have in their not too active efforts to persuade the monetary union countries to let the country inside, is financial stability. Bulgaria’s foreign exchange reserves are now 160 percent of the currency board law requirements and stand at 24 bn. euro. Unlike many within the Eurozone itself, the government has attained a budgetary surplus and there can be no question whatsoever of any deficits. The Maastricht criteria which are a must for the introduction of the euro (though rarely complied with in practice) have been met long ago.

There are many similarities with Schengen here. As all countries in the Schengen area of free movement acknowledge, Bulgaria meets all conditions set down. It meets all requirements set down in writing, but does not seem to be good enough for some west European leaders and they have been showing no sign that they may, finally, accept Bulgaria to be part of Schengen. The parallel with the euro is evident – on paper everything is just fine, in practice all people anything within the Eurozone depends on have been looking the other way and  busying themselves with other, more important affairs.

All this is humiliating for Bulgaria as it would be difficult to come up with a clearer demonstration of the second-tier position the country is being designated within the EU. One of the pillars underpinning united Europe since its very foundation is solidarity. Nowadays it is a word heard less and less often. But developments in the EU have taken such a turn and have been galloping ahead at such a speed that there may well come a day when being outside Schengen and the Eurozone could be seen as a good thing.