Balgarianovinite.com In the conditions of ongoing political instability, the resilience of the state depends on the stable functioning of its core public institutions, said Bulgarian National Bank (BNB) Governor Dimitar Radev in an interview with BTA. According to him, the central bank plays a key role in maintaining economic and financial stability, including during periods of severe political crises. Radev stressed that he would not accept the position of caretaker prime minister, as this would call into question the independence of the bank. He also noted that the prospect of joining the euro area creates a stricter and more predictable framework for economic governance and is viewed positively by financial markets.
In the interview, Radev also commented on the issue of extending the current budget into 2026, stating that under the circumstances this is “the most adequate possible option,” as it allows for the maintenance of fiscal discipline and the preservation of relative economic stability.
Here follows the full text of the interview.
Q: Mr. Radev, we have found ourselves with an outgoing government once again within a short span. This time it is days away from Bulgaria entering the euro area. What is your comment?
A: The state is not limited to the framework of specific governing mandates. Its resilience is based on the functioning of its core public institutions. When they operate in a stable and predictable manner, even significant political crises can be overcome without major economic shocks. The current situation represents a test for the institutional framework, which still has certain deficiencies, but I am convinced that the BNB is a key institution with the capacity to withstand it.
Q: People often associate political instability with economic risk. Is this justified?
A: Not automatically. The real risk arises when political instability is combined with a lack of responsible and consistent decision-making. In our case, the problem is not the rules themselves, but their inconsistent application. This once again highlights the importance of institutions and the ability of the political class to build a stable and predictable institutional framework.
Q: What is the role of the central bank in such a situation?
A: Its role is to ensure stability and predictability, even when the political environment is unstable. We do not interfere in the political process, but we ensure that the fundamentals – the monetary system, the banking sector, and the confidence of citizens and businesses in them – remain stable. This is how relative calm is maintained during periods of heightened uncertainty.
Q: Does joining the euro area change things?
A: Definitely. The euro area limits the scope for political and economic improvisation and requires a higher degree of discipline. This reduces the impact of domestic political fluctuations and global uncertainty, while at the same time creating a clearer and more predictable institutional framework for economic governance.
Q: The extension of the budget is often perceived as a weakness. What is your opinion?
A: The absence of a regular budget is not desirable, but in the current situation it is the most adequate possible option. It allows for the preservation of relative fiscal discipline amid political turbulence. The budget should serve the stability and sustainability of the state, not short-term political goals.
Q: Can institutions make up for the lack of political stability?
A: To a certain extent, yes. They can provide time and relative calm, but they cannot replace political responsibility. Ultimately, strategic decisions must be taken by those to whom society has entrusted that role.
Q: Under the Constitution, you are among possible caretaker prime ministers. Would you accept?
A: Absolutely not. The independence of the central bank is a fundamental principle. Calling it into question would undermine trust not only in the BNB, but in the entire institutional system, especially at a moment of historic change of the monetary regime.
Q: How do financial markets view Bulgaria in the current situation?
A: Financial markets are pragmatic. They assess whether there are clear rules, whether institutions function effectively, and whether the strategic direction is credible. The prospect of euro area membership has a clearly positive effect in this regard, regardless of the current domestic political challenges.
Q: What are the broader implications from what is happening today?
A: Stability is not a given. It is maintained through discipline, strong institutions, and long-term thinking. When these elements are absent, the cost is ultimately borne by society as a whole.
Q: What is your message ahead of the holidays?
A: The state has a foothold even when politics is in crisis. This does not solve all problems, but it provides grounds for relative calm and moderate optimism.
On the eve of the Christmas and the New Year holidays, I wish everyone health, peaceful holidays, and time with their loved ones. May the new year bring confidence, reason, and stability. BNB Governor: State Has a Foothold Even When Politics Is in Crisis 2025 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2025-12-23 07:50:01 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law
