Romania and the Euro

Report on the National Plan to Adopt the Single Currency, presented at the Romanian Academy

Ştefan Stoica, 17.04.2019, 13:43

Romanias switching to the Euro is a national project whose success requires the support of the entire society, PM Viorica Dancila said upon the presentation of the substantiation report for the National Plan to Adopt the Single Currency. Just like the accession to the European Union and NATO, the countrys accession to the Euro zone is a nation-wide priority, the head of the Romanian Government believes. According to her, this will benefit the Romanian society, but the success of this endeavour requires the support of the academia, civil society, political parties, social partners and the key public authorities.

Proper preparation for the first stage of this process, namely the adoption of the European exchange rate mechanism, as well as governmental measures to enhance competitiveness and ensure sustainable economic growth, are of vital importance in this respect.

Viorica Dancila: “I firmly believe that, through measures aimed at stimulating the economy and supporting competitive sectors, and through open and constant dialogue with social partners, we can pave the way for Romania to be able to meet the key requirements for adopting the euro by 2024.

The President of the Romanian Academy, Aurel Pop, emphasised that Romanias EU membership has been essential and the countrys embracing the Unions values has been redemptive for the Romanian society.

In turn, the Governor of the National Bank of Romania, Mugur Isarescu, supports a cautious approach, because in his opinion switching to the Euro, in and by itself, does not solve the problems of an economy, but, on the contrary, it may even deepen them. The central bank official believes that Romania should look at how the other countries in Central and Eastern Europe have handled this change. In his opinion, the relevant example for Romania is the way Poland, the Czech Republic and Hungary have tackled this process. Adopting the Euro remains a commitment that the country stands by.

Mugur Isarescu: “The switch to the Euro is a matter of when, and not a matter of if. Romanias commitment to joining the Euro zone is unquestionable, and is an obligation that the country has taken under the EU Accession Treaty. But beyond the formal and judicial obligation, the commitment to adopting the single currency also reflects Romanias strong affiliation to the European project. In other words, fully embracing Romanias European future includes the accession to the Euro zone.

Mugur Isarescu also mentioned that this is not a strictly technical matter, a mere replacement of a set of notes and coins with another, but a highly complex process, whose proper unfolding and successful completion require very careful management and close cooperation between all the institutions involved.

(translated by: Ana-Maria Popescu)