As has previously been the case, the European Commission considers that Romania does not fulfil the conditions for the adoption of the euro.
The EC has made its usual periodic assessment, based on legal compatibility and on the fulfilment of the convergence criteria, and taking into account the additional factors relevant for economic integration and convergence, reports Agerpres.
The decision is made together with the European Central Bank.
The conclusion is presented in the 2024 Convergence Report, which provides an assessment of the progress non-euro area member states – Bulgaria, the Czech Republic, Hungary, Poland, Romania and Sweden – have made towards adopting the euro.
The EC report pointed out that Romania’s legislation in particular is not fully compatible with the compliance duty under Article 131 TFEU. That means that the problems which led to Romania not fulfilling the criteria include:
- Price stability
- Public finance
- Exchange rates
- And the convergence of long-term interest rates.
What’s more, the ECB cited “weaknesses in the business environment, an inefficient public administration, tax evasion, corruption, a lack of social inclusion, a lack of transparency, a lack of judicial independence and/or poor access to online services”.
Institutional quality and governance were improving but still “relatively weak” in Bulgaria, Romania and Hungary, the ECB said. It cited “weaknesses in the business environment, an inefficient public administration, tax evasion, corruption, a lack of social inclusion, a lack of transparency, a lack of judicial independence and/or poor access to online services”.
At a rate of 7.6%, Romania has had one of the highest inflation rates in Europe this past year – largely due to the financial complications of the war in Ukraine, next door to Romania. The ECB has admitted that the “limited progress” was also due to these additional challenges.
Romania has previously stated that it hopes to join the euro by 2026, although the more realistic plan seems to be 2024, says Euractiv.
