Balgarianovinite.com In an interview for BTA, International Monetary Fund (IMF) Managing Director Kristalina Georgieva praised Bulgaria’s smooth accession to the eurozone, as well as its policy in response to the energy crisis that followed the military conflict in the Middle East. Following the spring meetings of the IMF and the World Bank in Washington, she outlined the implications for Europe and the possible changes in global economic patterns resulting from the conflict.
Georgieva said that even though many believed that Bulgaria’s adoption of the euro would shock to national economy, the benefits of Bulgaria’s accession to the monetary union are already evident, as reflected in the country’s increased appeal. The next goal should be to translate this appeal into actual investments.
The head of the IMF praised Bulgaria for taking the right, targeted measures in the current context of an energy crisis, as it provides support to citizens and companies in need, while recognizing the need to shift budget priorities from short-term to medium- and long-term goals.
According to the IMF Managing Director’s assessment, Bulgaria is currently in a very good position, but more can be done to achieve progress by capitalizing on Bulgarians’ propensity for entrepreneurship and innovation, a prime example of which is the success achieved in the IT sector. “I am optimistic because Europe as a whole, and Bulgaria in particular, possess exceptionally high human capital, as well as the potential to convert savings into investments, which has not yet been fully utilized,” she said.
Challenges facing Europe
For the world, the crisis in the Middle East came as a massive shock. The global economy lost about 20% of the oil and gas it relied on, and such an imbalance between supply and demand inevitably puts upward pressure on prices, Georgieva noted. For the European economy, the immediate impact of the crisis is reflected in the sharp spike in fuel prices. The IMF Managing Director’s recommendation is to attempt to curb demand in order to reduce the scale of the imbalance.
Another step that can be taken is to soften the blow on the most vulnerable segment of the population. What must be avoided are measures that benefit both the poor and the rich. “Bulgaria is a good example in this regard because it has introduced measures that help people who truly need this assistance,” Georgieva said.
If the measures taken increase demand when supply is tight, it would be like pouring oil on the fire – it would only make the fire bigger, meaning the inflationary process would intensify, the head of the IMF chief warned.
A third factor that requires vigilance is the emergence of risks of financial instability. In this regard, Europe is in a good position, as the banking sector is very stable, and policies across individual countries are coordinated and prudent, according to IMF assessments.
The US economy is the only major economy where labour productivity is growing at a faster rate than economic growth. Europe lags behind in terms of labour productivity, and there are three reasons for this. The first is the lack of a capital market that is sufficiently deep and liquid, ready to take on greater risk. Because of the insufficient market in Europe, for example, EUR 300 billion of European investors’ money is transferred to the US and works for the American economy, Georgieva noted.
The second reason is greater innovation in the economy and the establishment of businesses that become sources of goods and services. The third is that in America, it is not shameful to start a business and fail. When it is difficult to exit a business if you go bankrupt and then return with another initiative, this reduces entrepreneurial activity, she added.
The world after the crisis
“I believe that every crisis leads to change, and some of these changes are extremely positive,” Georgieva said against the backdrop of ongoing uncertainty surrounding the conflict and hopes that the ceasefire will lead to a lasting peace. In her view, the current crisis could spur the development of three processes.
First, a renewed interest in energy efficiency measures and the diversification of energy resources. The energy intensity of the global economy is decreasing, and when there is a crisis-driven impetus, this process accelerates.
Second, greater attention is expected to be paid to the issue of energy security, especially in countries that are dependent on energy imports.
The third expected change is that more attention will be paid to how, during periods of economic growth, resources can be created to help cushion the next potential blow.
Georgieva said: “In recent years, we have experienced the COVID-19 pandemic, the war in Ukraine and its impact on the global and regional economies, followed by inflation, which led to rising interest rates, and then a trade war. Each of these shocks has reminded us that the world has changed. It is not only multipolar but also much more vulnerable to such external shocks. How can we adapt to this world full of external shocks? Individual countries cannot influence external shocks, but they can build a stronger system of protection.”
She emphasized that the IMF’s primary mission is to help its 191 member states navigate these conditions and strengthen their own capacity to weather shocks, as well as to work more intensively to foster regional and interregional ties and cooperation. IMF Managing Director Praises Bulgaria for Anti-Crisis Measures amid Energy Crisis 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-04-22 05:28:00 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