Policies for the euro adoption in Romania

AuthorDumitrescu, A. - Tache, I.
PositionPhD. Student, Lucian Blaga University of Sibiu - Dept. of Marketing, Tourism and International Relations, Transilvania University of Brasov
Pages201-206
Bulletin of the Transilvania University of Braşov • Vol. 6 (55) No. 1 - 2013
Series V: Economic Sciences
POLICIES FOR THE EURO ADOPTION
IN ROMANIA
A. DUMITRESCU
1 I. TACHE2
Abstract: This paper ana lyses the policies for the eu ro ad option in
Romania. For Romania, a dopting euro as national curr ency seemed to be, a t
least until very recently, a prior ity objective, fact suggested by the rush in
entering the EMS II system. A major r egime chan ge, a s the monetary
unification, is clear ly made when there a re strong motivations given by
benefits, but such a cha nge involves costs, risks and difficulties. The adoption
of the unique currency in a n unsuitable time can have more bad
consequences than positive ones.
Key words: Monetary Union, convergence criter ia, national ta rget.
1 PhD. Student, Lucian Blaga University of Sibiu.
2 Dept. of Marketing, Tourism and International Relations, Transilvania University of Braşov.
1. Introduction
All Member States of the European
Union, except Denmark and the United
Kingdom, are required to adopt the euro
and join the euro area. To do this, they
must meet certain conditions known as
'convergence criteria'.
All EU Member States are part of the
Economic and Monetary Union, which
means they coordinate their economic
policies for the benefit of the EU as a
whole. However, not all EU Member
States are in the euro area only those
having adopted the euro are members of
the euro area.
Of the Member States outside the euro
area, Denmark and the United Kingdom
have 'opt-outs' from joining for reasons of
economic sovereignty. These two countries
can join in the future if they so wish.
Sweden is not yet in the euro area, as it
has not made the necessary changes to its
central bank legislation and it does not
meet the convergence criterion related to
participation in the Exchange Rate
Mechanism (ERM II). However, under the
Treaty, Sweden is required to adopt the
euro.
The remaining non-participating
Member States acceded to the Union in
2004 and 2007, after the euro was
launched.
At the time of their accession, they did
not meet the conditions for entry to the
euro area, therefore their Treaties of
Accession allow them time to make the
necessary adjustments they are Member
States with a 'derogation', as is Sweden.
These Member States have committed to
joining the euro area as soon as they fulfil
the entry conditions. When this is the case,
the 'derogation' is 'abrogated' by a decision
of the Council, and the Member State
concerned adopts the euro. [1]
The fact that euro became a currency in
its own right appear to have two
implications. First, that it is a currency, the
currency of particular countries. Secondly,

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