EIU: Romania might postpone the adoption of the euro until 2016 or 2017

Romania might postpone the adoption of the European single currency until 2016 or 2017, as the current target will be revised by the government formed after the elections of this autumn, jointly with the National Bank of Romania (BNR), Joan Hoey, senior analyst with the Economist Intelligence Unit (EIU) said, quoted by In his turn, Professor Daniel Daianu, state counsellor with the prime minister’s working apparatus, mentioned that he never considered 2015 as a realistic target. Romania’s accession to the eurozone would require a competitive economy, Daianu said, reports. The opinion is shared by Joan Hoey, who also believes that BNR should keep the exchange rate under control. Romania may have trouble meeting the convergence criteria set by the European Central Bank, i.e. the criteria regarding inflation, fiscal deficit and long-term interests, in view of adopting the euro in 2015, Hoey explained.According to the EIU analyst, in its convergence programme for 2011-14 the government confirmed its intention to adopt the euro in 2015 and join the European Exchange Rates Mechanism (ERM2) in 2013-2014. “As economies must stay for at least two years within ERM2 before moving to the euro, its adoption in January 2015 would imply the commitment to join ERM2 in 2013. However, the formally announced deadline is a sign that the adoption of the euro might be postponed until December 2015.”Hoey added that the government which will emerge from the parliamentary elections of November 2012, for a 4-year mandate that will run until the 2016 elections, will revise the 2015 target jointly with the National Bank of Romania.The accession to the eurozone is decided when several conditions are met, set through the Maastricht Treaty: the stability of the currency, the level of state debt and budget deficit, inflation and interests.

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