Former status symbol tarnished as debt crisis rages on
BRUSSELS (MarketWatch) — The European Union’s poorest members, who once eagerly looked forward to shedding their own currencies to adopt the euro, are now steering clear of the shared currency, underlining the euro zone’s slide from a prestigious and stable club to a radioactive region of financial contagion.
Emerging economies like Bulgaria and Poland are keeping their distance due to fears that euro membership would drag them down and require them to contribute to the rescue of struggling neighbors.
Just last week, Bulgarian Finance Minister Simeon Djankov told Financial Times Deutschland that although Sofia meets the criteria for joining the 17-member euro zone, it will wait to see what shape the bloc takes.
“Are you surprised? The euro zone is disintegrating, so what is the purpose of joining?” asked Leon Podkaminer of the Vienna Institute for International Economic Studies.
Unlike counterparts around Europe, the Bulgarian finance minister hasn't shied from public speculation about a euro collapse. “I think there is a great chance that within six months the euro zone will no longer exist,” Djankov told a Bulgarian TV channel in November 2011.
Now, the southeastern European country’s finance minister says that before making a decision, Bulgaria wants to see if the euro area will agree to the common issuance of debt.
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