Adopting the euro: Romanian perspectives in the context of the global financial crisis

Abstract

The objective of this paper is to examine Romania’s capacity to fulfil the nominal convergence criteria in the current context, in order to follow the calendar proposed for euro adoption in 2015. The paper analyzed the evolution of all five criteria under the impact of the current financial crisis and also looked at the forecast provided by national and international authorities. The study was conducted considering the relative situation with the euro area. The main finding is that the actual target for euro adoption could be complied with, provided further progress is made. We have also fond that the target should be achieved as it would represent a strong stimulus for the local government to implement additional measures to reduce public indebtedness and inflationary pressure.