Romania and the Euro Zone
Should Romania join the Euro zone?
I. Introduction
Normally, according to the commitments and timetable agreed with the European Union and the European Central Bank, Romania has scheduled to join the single European currency (Euro) in 2010-2013. As can be clearly seen the term it is not available anymore, due to the global and national economic developments. Therefore the Romanian Government and the National Bank of Romania (NBR) has set a new deadline to adopt Euro as national currency in 2015.
Romanian Government showed no sign of freezing plans to join the euro area. However, given the instability of European economic situation, neighbors to the south, Bulgarians, announced plans to freeze membership.
Romania maintains its target of joining the euro zone in 2015. Two years in ERM II - exchange rate mechanism, called Euro zone waiting area - will help officials to ascertain whether Romania has the ability to effectively convert to the euro and could withstand the impact of such change.
NBR officials found 2015 to be a realistic time frame although some advised voices fairly warned that Romania again will not be able to achieve the minimums requirements that the European Central Bank impose to a country for the euro adoption.
But NBR continued to march on the 2015 term, citing (actually right seen from a point of view) that keeping a relatively close period of time will lead to the mobilization of all factors involved in achieving this goal and finally achieving this objective of national interest.
II. The importance of Euro adoption for Romania
Euro Currency in Romania: Why is a unique currency necessary?
Using a single currency has the following results: * Cutting out conversion charges from a national currency to another * Dropping out the exchange risk on commercial trades with other euro zone members * Increasing the efficiency of financial and monetary markets * Transparency of prices of goods and services within the
I. Introduction
Normally, according to the commitments and timetable agreed with the European Union and the European Central Bank, Romania has scheduled to join the single European currency (Euro) in 2010-2013. As can be clearly seen the term it is not available anymore, due to the global and national economic developments. Therefore the Romanian Government and the National Bank of Romania (NBR) has set a new deadline to adopt Euro as national currency in 2015.
Romanian Government showed no sign of freezing plans to join the euro area. However, given the instability of European economic situation, neighbors to the south, Bulgarians, announced plans to freeze membership.
Romania maintains its target of joining the euro zone in 2015. Two years in ERM II - exchange rate mechanism, called Euro zone waiting area - will help officials to ascertain whether Romania has the ability to effectively convert to the euro and could withstand the impact of such change.
NBR officials found 2015 to be a realistic time frame although some advised voices fairly warned that Romania again will not be able to achieve the minimums requirements that the European Central Bank impose to a country for the euro adoption.
But NBR continued to march on the 2015 term, citing (actually right seen from a point of view) that keeping a relatively close period of time will lead to the mobilization of all factors involved in achieving this goal and finally achieving this objective of national interest.
II. The importance of Euro adoption for Romania
Euro Currency in Romania: Why is a unique currency necessary?
Using a single currency has the following results: * Cutting out conversion charges from a national currency to another * Dropping out the exchange risk on commercial trades with other euro zone members * Increasing the efficiency of financial and monetary markets * Transparency of prices of goods and services within the