28 Noiembrie 2008

Drawbacks in the road of Romanias adoption of single currency

The safety margin provided by the single European currency, amid full financial crisis, might force several countries to adopt sooner the euro, but Romania will likely stumble onto some bureaucratic problems, which might put off the introduction of euro to 2015, analysts say.

“Amid financial crisis, national currencies outside the euro area have been extremely volatile, and affected by the crisis, which is not a good sign for the economy. In return, the Euro currency, is the international safety valve, which provides an enhanced stability”, said Ionut Dumitru, senior economist at Raiffeisen Bank at CFA Romania Awards, quoted by NewsIn.

He added that countries like Poland,Czech or even Denmark, which until recently had no well-settled plan for introduction of euro, have changed their opinion. Even Italy, that planned to exit the euro zone, has re-thought its plan and the shield that the euro zone provides, it is good for the economy’s health.

Therefore, the adoption of the single currency by the countries outside euro zone might be quickened in the coming period, Dumitru concluded.

However, the senior economist of ING Bank Romania, Nicolae Alexandru Chidesciuc, said that Romania’s accession to the euro zone will be put off for no sooner than 2015, or even for later, because, “technically speaking, it is not possible, if we take into consideration that accession in ERM II will take place in 2012, it means that the valuation for adoption of the currency cannot start sooner than 2013”.

Translated by Camelia Oancea

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