Romania Contemplates Postponing Euro Adoption Until 2016/2017

04.12.2011 By Florentina Dragu

Romanian authorities consider adopting the European single currency with a delay of one to two years to allow for a better fiscal consolidation, according to a government document.

Romanian authorities consider adopting the European single currency with a delay of one to two years to allow for a better fiscal consolidation, according to a government document.

The Eastern European country wants to adopt the euro in January 2015, but its plans might be put off because of weak economic performance.

"Romania must be prepared to adopt the euro and it has to consolidate its monetary and fiscal policy so that the exchange rate at the time of the adoption is stable," the mentioned document noted.

The central bank's governor Mugur Isarescu said late last year that Romania needs coherent fiscal and economic policies and continued reforms if it wants to adopt the European common currency sometime near the 2015 horizon.

However, the country shouldn't give up its self-imposed target on euro adoption, he added.

"The target has to remain, even if it could be revised along the way, because the appetite for reforms must not be diminished," Isarescu said.