Romania and the euro

The current account of payment balance registered during Q1 of 2020 a deficit of 2.549 billion Euro, against 990 million Euro during the period of January - March 2020, according to the data published on Friday by the National Bank of Romania (BNR).

The low per-capita income on average represents the biggest issue regarding Romania's real convergence in view of joining the Eurozone (EZ), however, it's not a a formal criterion for euro accession, experts with the European Central Bank (ECB) believe.

The National Bank of Romania (BNR) has a balanced approach to the adoption of the euro, BNR governor Mugur Isarescu said on Tuesday, mentioning that this requires a high real convergence, as well as keeping the pace after Romania joins the eurozone.

The euro turned 20 years old on January 1, 2019. On January 1, 1999, after years of preparations, 11 member-states of the European Union agreed to use the same currency in all monetary transactions among themselves, an initiative that marked the official launch of the euro. The euro's introduction in physical form, as coins and banknotes, however, took place on January 1, 2002.

Bulgaria could join the Eurozone in early 2022, said European Commission Vice President for Eurozone and Social Dialogue and Financial Stability, Financial Services and Capital Markets Valdis Dombrovskis told a reporter at the Bulgarian National Radio, quoted by Dnevnik.

In its latest Convergence Report released on Tuesday, the European Central Bank (ECB) concluded that Bulgaria does not fully comply with the euro convergence criteria.

Apart from Bulgaria, the report examine the six other member states which do not participate in the exchange rate mechanism (ERM II), namely the Czech Republic, Croatia, Hungary, Poland, Romania and Sweden.

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.

President Klaus Iohannis said a "national consensus" was needed in Romania about joining the eurozone, as was "a rigorous calendar of economic, monetary, legislative and institutional measures.

"That's why we should soon start consultations with all political parties to reach a consensus on this issue," he added.

Prime Minister Victor Ponta says Romania wants to join the Eurozone in the second half of 2019 and for that to happen it takes a political consensus.

National Bank of Romania Governor Mugur Isarescu restated on Friday his support for the adopting of euro by Romania.