\nWhile
\nRomania is still to join the euro officially, the single European
\ncurrency is de facto the country’s currency. The Central Bank of
\nRomania has for the last few years maintained an exchange rate of 5
\nlei for one euro, which makes it easier for the population and
\npolitical decision makers to make future plans. The costs of the
\nmajor infrastructure projects presented by the authorities are
\nestimated in euros. The price of land and property is published in
\neuros, even though real estate transactions are signed in the
\nnational currency, the leu. When writing about the plum jobs the
\npoliticians in power, across the spectrum, secure for their party
\nclientele, the media usually take the euro as a reference point.
\nLooking at the prosecutor’s indictments in anti-corruption cases,
\nwe also note that most corrupt officials receive their bribes in
\neuros. The millions of Romanians living and working in western Europe
\nsend money to their relatives in their home country in euros.
\n<\/p>\n
<\/p>\n
\n
\n
\n
\n<\/p>\n
<\/p>\n
\nDespite
\nthis, Romania is not fulfilling at the moment any of the conditions
\nto join the eurozone. In keeping with the Maastricht Treaty of 1992,
\nthese conditions are stability of prices, solid and sustainable
\npublic finances, exchange rate stability and long-term convergence of
\ninterest rates. Moreover, according to the latest convergence report
\npublished by the European Commission on Wednesday, of all of the 27
\nEU member states, Romania is the only one to be subject to the
\nexcessive deficit procedure. Bulgaria, the Czech Republic, Hungary,
\nPoland and Sweden, while also not members of the eurozone, are all
\nbetter rated by the Commission. Despite joining the European Union in
\n2013, six years after Romania, Croatia may be able to adopt the euro
\non 1st January 2023, if the Eurogroup and the European
\nCouncil support the Commission’s proposal.
\n<\/p>\n
<\/p>\n
\n
\n
\n
\n<\/p>\n
<\/p>\n
\nThe
\nparadox noted by commentators was that back in 2016, Romania did meet
\nthree of the four conditions for joining the eurozone. The only
\ncondition still to be met was that referring to the exchange rate, as
\nwell as an additional condition imposed by the European Commission,
\nnamely legislative compatibility. In other words, the economic
\npolicies of the governments that came to power afterwards, both on
\nthe right and on the left, single-party and coalitions, only eroded
\nRomania’s compatibility with the eurozone.
\n<\/p>\n
<\/p>\n
\n
\n
\n
\n<\/p>\n
<\/p>\n
\nIt’s
\ntrue that the Covid-19 pandemic brought about two years of utter
\nconfusion in the economy and in society, and uncertainties still
\npersist following Russia’s invasion of Ukraine. In recent months,
\nprices have exploded, interest rates are constantly going up and
\npublic finances are far from being solid and sustainable, while the
\ncountry is borrowing at a pace described by the media as dizzying. (CM)<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
Romania is not ready to adopt the European single currency.<\/p>\n","protected":false},"author":105,"featured_media":79589,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[29103],"coauthors":[],"class_list":["post-64128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-euro"],"acf":[],"yoast_head":"\n