Iran war may boost already rising support for euro in Bulgaria: Central banker

Bulgaria suffered only a small inflation
bump when it adopted the euro on 1 January and public support for the common
currency is now rising quickly, with the war in Iran offering a potential
boost, Central Bank Governor Dimitar Radev said.
Public support for
the euro was relatively low in the lead-up to the currency switch and
Bulgaria's former president, seen as a favourite to become prime minister after
an election on 19 April, has been an outspoken critic, arguing that prices
would rise, making one of the EU's poorest countries less affordable.
"Our analysis
suggests that the impact was limited and largely one-off, in the range of 0.3
to 0.4 percentage points, broadly comparable to Croatia's experience,"
Radev, now a member of the ECB Governing Council, told Reuters in an interview.
Bulgaria's inflation actually slowed in
January, to 2.3% from 3.5% in the previous month, and stood broadly in line with
the euro zone figure in March.
The mild inflation
impact helped boost support for the euro, albeit from relatively low levels,
and Radev said the war in Iran may actually raise support further as households
see the shield it provides.
"Household
support stood at 45% before accession and has since risen to 54%," he
said. "In the business community, support was already strong and is now in
the 70s."
"The current
environment is likely to make the benefits more visible, as more people
recognise the value of being part of the union rather than remaining outside
it," Radev said.
















