German MEP: Romania is not ready to adopt euro

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Romania has set on January 1, 2019 as the target for joining the euro area, although the initial target was 2015. “Setting an ambitious euro target for 2019 could have a positive effect on mobilizing the country but it also takes a consistent political effort,” Governor of Romania’s central bank, Mugur Isarescu said this summer. Unfortunately, the authorities in Brussels are not so optimistic.

Romania is not, nor will be ready to adopt euro in the next five years, MEP Joachim Starbatty, member of AFET Committee on Foreign Affairs of European Parliament said on Saturday attending the press conference “The future of the euro” in Cluj.

He warned that joining the single currency before the budget deficit to remain consistently below 3 percent of GDP would put Romania in Greece, Spain situation, where unemployment has exceeded 20 percent, informs. According to Starbatty, total public debt must be below 60 percent. “Romania must be careful to achieve these conditions which depend on monetary and financial policy. Politicians must realize that these conversion conditions must be attained and that means you must have a healthy monetary policy and a good financial standing.”

The largest eastern EU members, including Poland, the Czech Republic and Hungary, have abandoned euro-adoption targets as their economies reeled from the global economic crisis and confidence in the currency was shaken. Romania is setting out to follow Slovenia, Slovakia, Estonia and Latvia into the bloc, while Lithuania is aiming to join next year.

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