SOFIA, Sept. 17 (Xinhua) -- Ivan Iskrov, governor of the Bulgarian National Bank, said Monday that his country should not join the European banking union at this stage.
Under the banking union proposals, made by the European Commission last Wednesday, the European Central Bank (ECB) would get the power to monitor all eurozone banks and others in the wider European Union (EU) that agree to the oversight, before the establishment of a fund to close troubled banks and the formation of a scheme to protect citizens' deposits across the eurozone.
"Based on the proposals, Bulgaria's accession to this banking union will be reduced mainly to significant unilateral transfer of national sovereignty to Brussels and Frankfurt, but in return our country will get nothing," Iskrov said at the University of National and World Economy in Sofia.
Moreover, a general guarantee scheme for deposits and a general framework for the restructuring of banks should be created together with the uniform control, Iskrov said. But this was missing in the proposal, he added.
However, Iskrov said the Bulgarian National Bank, the country's central bank, generally supported the deepening of integration and governance within the eurozone, including fiscal union, banking union and political union.
"Because of the substantial imbalances accumulated in the eurozone, this is probably the only way to stabilize it," he said.
Bulgaria has been a member of the European Union since 2007 but has not joined the eurozone.