THE REFORMS IN THE EMU TOWARDS BANKING AND CAPITAL UNION: CONSEQUENCES AND CHALLENGES TO THE FINANCIAL SECTOR IN BULGARIA

The еconomic and financial integration of Bulgaria to the European Union (EU) since the start of its official membership in 2007 coincided with the worst Global financial and economic crisis for the last seven decades and with the European sovereign crisis in the European Moneraty Union (EMU) as the “core’ of the EU integration. The paper discusses the adjustment of the Bulgarian economy to the integration process in the EU which has been challenged by the deep institutional reform process as crucial for overcoming the crisis by making the normative power of the EU stronger. The macroeconomic performance of Bulgaria is revealed with regard to the compliance with the macroeconomic convergence criteria for the EMU. The financial sector reform is discussed to outline its ongoing reform with the EU law and regulation. Conclusions are summarized for the EMU’s entry as a challenge and opportunity for further integration of Bulgaria the EU