What can Bulgaria learn from NMS-8 accession What can Bulgaria learn from NMS-8 accession? Joint BNB – IMF Seminar Bulgaria – From Transition to Convergence: The challenges ahead Sofia, 2 May 2007 Norbert Wunner European Commission Directorate General for Economic and Financial Affairs
Introduction NMS-8 Common challenges … but substantial diversity
2004 accession – what has been the experience? EU accession has been a catalyst for institution- building reforms Economic convergence has been boosted
2004 accession – what has been the experience?
2004 accession – what has been the experience?
2004 accession – what has been the experience? EU accession has been a catalyst for institution- building reforms Economic convergence has been boosted Successful disinflation
2004 accession – what has been the experience?
2004 accession – what has been the experience? EU accession has been a catalyst for institution- building reforms Economic convergence has been boosted Successful disinflation … but signs of overheating in some countries
2004 accession – what has been the experience?
2004 accession – what has been the experience? EU accession has been a catalyst for institution- building reforms Economic convergence has been boosted Successful disinflation … but signs of overheating in some countries Improving labour market situation
2004 accession – what has been the experience?
2004 accession – what has been the experience?
2004 accession – what has been the experience? EU accession has been a catalyst for institution- building reforms Economic convergence has been boosted Successful disinflation … but signs of overheating in some countries Improving labour market situation Fiscal consolidation
2004 accession – what has been the experience?
2004 accession – what has been the experience?
Possible lessons for Bulgaria Convergence takes time …
Possible lessons for Bulgaria
Possible lessons for Bulgaria Convergence takes time…, … cannot be taken for granted, … and depends on sound economic policies and good governance EU transfers can help sustain convergence … … but are no panacea.
Conclusions EU accession has been an economic success story for the new Member States Bulgaria has started to benefit from accession already during the pre-accession preparations Reaping the full benefits of accession requires sound economic policies, good governance and sustained commitment to reform