Why is Romania still outside the euro zone?

• Author: Dovleac, L. - Broju, A.
• Position: Dept. of Marketing, Tourism and International Relations, Transilvania University of Brasov - PhD. Student, Dept. of Accounting, Academy of Economic Studies of Bucarest
• Pages: 187-192

Bulletin of the Transilvania University of Braşov • Vol. 6 (55) •No. 1 - 2013

Series V: Economic Sciences

WHY IS ROMANIA STILL OUTSIDE

THE EURO ZONE?

L. DOVLEAC

1 A. BROJU2

Abstract: This paper includes a presentation of Romania’s situatio n as a

Europea n Union member wishing to adopt the euro. Along with other 7

countries in the same situation, Romania is trying very hard to meet the

convergence criter ia set by the Maastricht Trea ty. But the ana lysis of various

economic, financial a nd social indicator s representative for our country

shows that we are not r eady to adopt the euro in 2015, as it was esta blished.

Key words: Eurozone, convergence criter ia, inflation, exchange rate .

1 Dept. of Marketing, Tourism and International Relations, Transilvania University of Braşov.

2 PhD. Student, Dept. of Accounting, Academy of Economic Studies of Bucarest.

1. Introduction

Romania joined the European Union on

1 January 2007 and has committed itself to

adopt the euro once it fulfils the mandatory

conditions.

Adopting the single currency is a crucial

step in a Member State's economy. Its

exchange rate is irrevocably fixed and

monetary policy is transferred to the hands

of the European Central Bank, which

conducts it independently for the entire

euro area.

Changing over to another currency is a

major operation which requires massive

preparations in order to ensure a smooth

transition. Preparations affect all parts of

the economy and all levels of society, and

are the responsibility of the national

government. Both the private and the

public sector must adapt their

administrative, financial, accounting and

invoicing systems. Finally, the country

must adopt the necessary laws governing

the introduction of the euro, and amend the

existing national legislation where needed,

notably to adapt references to monetary

amounts.

Timely and effective communication is

another essential task for any EU country

preparing to introduce the euro, and

experience shows that it is critical to a

successful changeover. Communication

campaigns on the introduction of the euro

must strive to ensure that people are able to

recognise and use the new currency with

full confidence and are fully informed

about the consequences of the changeover.

The practical preparations in the EU

countries which have not yet adopted the

euro are monitored by the Commission,

which reports regularly on their current

status.

This paper analyses the current situation

of Romania and its level of compliance

regarding the acceptance criteria in the

euro area. While it have been made efforts

for the conditions’ fulfilment, it seems that

Romania will not adopt the euro in 2015,

as expected.