Romania Must Set Realistic Date For Euro Adoption – President

Early August, central bank governor Mugur Isarescu said the institution should reexamine its self-imposed target for euro adoption to see whether the deadline was still feasible.

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

In March, the International Monetary Fund said Romania could adopt the European currency later than planned, adding that the country needs to consolidate its monetary and fiscal policies to stay on track.

The European Commission also said Romania is not yet prepared to join the euro area, citing a series of legal incompatibilities along the mandatory criteria for adopting the European common currency.

In its 2010 convergence report, the Commission noted the 12-month average inflation rate for Romania has been above the reference value since EU accession in 2007, adding that it may remain above in the near future as well.

Romania’s central bank estimates the year-end inflation would reach 8% in 2010, after a 5 percentage-point increase in the value added tax level drove the rate up to 7.6% in August.