Romania delays joining the eurozone once again

Romania does not currently meet the criteria for joining the eurozone and the measures taken to prop the economy during the COVID-19 pandemic have already increased macroeconomic imbalances. [Shutterstock/Per Bengtsson]

Romania’s government will again delay the calendar for eurozone entry, citing the need to re-balance its macroeconomic indicators because of the COVID-19 pandemic context.

Romania does not currently meet the criteria for joining the eurozone and the measures taken to prop the economy during the COVID-19 pandemic have already increased macroeconomic imbalances.

However, the country was already running a high deficit even before the first cases of COVID-19, which prompted the European Commission to start an excessive deficit procedure.

The Commission said it would not take further steps under the procedure, due to the exceptional situation but will continue to monitor and ask for corrective measures to bring the fiscal situation “onto a sustainable path.”

Moreover, Romania’s public debt is expected to grow rapidly in the current context, while its inflation rate is among the highest in the EU.

The information is acknowledged in a recent document published by the finance ministry, stating that the government will first focus on restoring macroeconomic balances and fighting the coronavirus pandemic, adding that it will only later draw another timetable for joining the euro-area.

The centre-right government that took office at the end of 2020 said it will focus on the efficient use of the recovery and resilience funds in the near-to-medium term. In that same time period, it will also focus on associated reforms to improve the quality of life and to contribute to sustainable development.

In 2019, the socialist government announced a calendar with the aim that Romania should adopt the euro in 2024. (Bogdan Neagu | EURACTIV.ro)

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