Greek Crisis Delays Romania's Eurozone Plans

Romania's membership of the single currency area will not be possible in 2019, as planned, and further delay must be taken into consideration as the euro project's solidity is tested by the Greek crisis, Romanian analysts say.

"We can assume the EU will become much tougher with the countries wishing to join the euro area. Now, considering the debt crisis in Athens, the transfer to the single currency looks increasingly remote for Romania," economic journalist Claudia Medrega said.

Valentin Lazea, the chief economist at the Romanian National Bank, BNR, said reaching real convergence is the biggest step Romania must take before it can join the euro area.

"Despite the progress it has made, Romania is far from the level recorded by the poorest countries on their entrance to the euro area. Under the current terms, adopting the euro in 2019 is an impossible target," Lazea said.

In February 2014, Romania set 2019 as the new deadline to join the single currency area, after the authorities abandoned the previous target date of 2015.

A European Commission report on euro-area convergence, released in June, said Romania and some other EU member states, Bulgaria included, were not ready to  join the single currency.

While the two Balkan countries met some of the macroeconomic criteria needed to join the euro zone, their economies continue to experience macroeconomic imbalances in terms of public finance and long-term interest rates convergence.

Their business environments also underperform compared to most eurozone member states.

Romania has reduced its public deficit below the level of 3 per cent of GDP, which is one of the key conditions for joining.

On the other hand, inflation in recent years has been well above the 1...