16.12.2021

ROMANIA HAS POSTPONED ITS GOAL OF JOINING THE EUROZONE UNTIL 2029

The next report on when Romania plans to adopt the euro will target 2029, said Florin Georgescu, deputy governor of the central bank. Another shift back in time reflects the current situation with the macroeconomic indicators, which requires time and significant adjustments to meet the criteria of the single currency area.

"The lack of political will on the part of the governments that ruled Romania since joining the EU in 2007 is demonstrated by the number of times the date has been changed," Georgescu explained.

The review of deadlines is usually done once a year and is included in the Convergence Report submitted by the Bucharest authorities to the European Commission. Initially, the target for adopting the euro - an obligation under the EU Treaty - was set in 2014. But then the deadline was changed to 2019, then to 2024, and now it is moving for another five years.

Romania had some chance to apply for the preparation mechanism for the adoption of the euro ERM II in 2015-2017, when it technically met the Maastricht criteria for price stability, sustainability of public finances and debt, stable exchange rates and long-term interest rates. Currently, the country does not meet these criteria.

Croatia and Bulgaria expect to adopt the euro in 2023 and 2024, respectively, and according to Raiffeisen economists quoted by bne IntelliNews, there will probably be a long pause in eurozone enlargement because of the arguments for accepting the Czech Republic, Hungary, Poland and Romania did not look convincing.