Bulgaria, Croatia take vital step to joining euro

Bulgaria and Croatia have been accepted into ERM-2 mechanism, a mandatory stage for joining the euro and beginning the currency bloc’s first expansion in half a decade, the European Central Bank said.

Following the approval from euro zone finance ministers and ECB officials, the two eastern European nations will also join the bloc’s banking union, putting their biggest lenders under the ECB’s supervision from Oct. 1, the bank said in a statement.

The two nations must spend at least two years in ERM-2 before starting the practical preparations to join the euro, a process that takes roughly another year, making 2023 the earliest year for their membership.

The decision “represents an important milestone in Bulgaria and Croatia’s efforts to join the euro area,” the European Commission said.

Source: Reuters (2020)

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