The adoption of the Euro by Romania - theoretical considerations

• Author: Ioana-nely Militaru
• Position: Department of Law, Bucharest University of Economic Studies, Romania, ioananelimilitaru@yahoo.com.
• Pages: 158-163

The adoption of the Euro by Romania - theoretical considerations

Associate professor Ioana-Nely MILITARU1

Abstract

The paper contains, first of all, aspects of the convergence r eport drawn up by the

Europea n Commission and the Europea n Centra l Bank on the level of readiness of a Member

State to join the eur o area when there is a n express request for it. The second pa rt refers to

several pr oposals for actions tha t Romania thinks should follow in order to adopt the eur o,

starting with the Convergence Report of the European Commission and the European

Central Ba nk of May 2018.

Keywords: euro, convergence r eport, convergence criteria , harmonization.

JEL Classification: K23, K33

1. Convergence Report of the European Commission2

The name "euro" was elected in 1995 by the European Council in Madrid.

The convergence report is the basis of the EU Council3 decision on the

fulfillment by a Member State of the necessary conditions for joining the euro area.

The adoption of the Euro by Romania is currently conditioned by the Convergence

Report (Commission) of May 2018, which highlights: the assessment of the progress

made by the Member States towards the adoption of the Euro, including Romania4.

The progress made is, in fact, the measure of meeting the necessary

conditions (criteria) for joining the Eurozone.

Convergence reports are published every two years or when there is an

explicit request from a Member State to assess its level of readiness for joining the

euro area, as was the case for Latvia in 2013.

The UK and Denmark are exceptions, while all other Member States have

the obligation to adopt the euro and to join the euro area. Therefore, the United

Kingdom and Denmark are not the subject of the report.

Those Member States which do not yet fulfill the necessary conditions for

the adoption of the euro are referred to in the TFEU as "Member States with a

derogation". These Member States have negotiated non-participation clauses under

1 Io ana Nely Militaru – Department of Law, Bucharest University of Economic Studies, Romania,

ioananelimilitaru@yahoo.com.

2 European Commission - Information Sheet 2018 Convergence R eport: Evaluation of the progress

made by Member States towards the adoption of the euroBrussels, 23 May 2018;

http://europa.eu/rapid/press-release_MEMO-18-3827_ro.htm, consulted on 1.10.2018.

3 Radu Ştefan Ptru, Anumite consideraiuni privind personalitatea juridic a Uniunii Europene în

urma Tratatului de la Lisabona (Some Consider ations on the Legal Personality of the European

Union following the Treaty of Lisbon), in „Consilier European”, edited by the Department for

European Affairs no. 1/16 April 2010, p. 12 -16.

4 https://www.dcnews.ro/romania-zona-euro-comisia-europeana-romania-risc-major_545959.html,

consulted on 1.10.2018.