Bulgaria and Croatia still have work to do in fixing their economies and improving their institutions before joining the euro, European Central Bank board member Fabio Panetta said today.
The reforms undertaken by the two will not fix all the imbalances and vulnerabilities they are facing, and more progress is needed to improve governance, their legal framework, and the overall quality of institutions, Panetta said in speech.
The two nations were admitted to the ERM-2 mechanism on Friday, a waiting room to enter the euro, and could join the currency union as soon as 2023.
