November 27, 2009
Guy Verhofstadt proposes that the East European EU countries which are still oustide the eurozone adopt the euro as a parallel currency. The proposal concerns Poland, the Czech Republic, Hungary, Estonia, Latvia, Lithuania, Bulgaria and Romania.
I’m not sure this is a very good idea. If the euro was introduced as a parallel currency in the country I know best (Bulgaria), this would result in hiking prices. The national currency, the Lev, is worth 50 cents. I’m sure that overnight many goods costing one lev will cost one euro. Also, a lot of cheating will take place, for instance when you get change in leva after paying in euro, or vice versa. At the end people will end up paying twice the price of what they are buying.Georgi Gotev