Market News

BELGRADE (Reuters) -Bulgaria's accession to the euro zone as of January next year will bring higher economic growth and higher living standards for the people, Prime Minister Rosen Zhelyazkov said on Thursday.

On Wednesday, the European Commission approved Bulgaria's request to adopt the euro currency as of January next year.

"The accession to the euro area will guarantee better growth, better purchasing power for the people, this means better convergence with the European living standards," Zhelyazkov said after meeting European Union Commissioner for the Economy Valdis Dombrovskis in Sofia.

Bulgaria, a Balkan country bordering the Black Sea, joined the European Union in 2007 and it is set to become the 21st country to adopt the euro on January 1, 2026.

Many fear that the accession will bring price hikes as it was the case with some other countries.

Zhelyazkov said that he presented Dombrovskis the measures the government was taking to raise awareness and transparency and also to protect vulnerable groups and the elderly who fear the cost of living will rise with the introduction of the euro.

He said there will be no tight deadline and no commission fees for those who want to convert their savings from the lev to the euro.

"We will avoid the hastiness," Zhelyazkov said.

The conversion of the local currency into euros, which will be done at a fixed exchange rate, will be supported by market players and overseen by regulators who will monitor market prices, he said.

With an average monthly salary of 2,443 leva ($1,420.76), Bulgaria is the poorest country in the European Union.

(Reporting by Ivana SekularacEditing by Tomasz Janowski)