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Greek Crisis Weighs Down Romania Euro Adoption – MEP

The prospects in Europe to join the euro area have changed after the Greece’s financial crisis and Romania will adopt the European common currency later than scheduled, Romanian MEP Theodor Stolojan said Friday.
Greek Crisis Weighs Down Romania Euro Adoption - MEP
23 apr. 2010, 12:42, English

„Those who want us to join the euro area later will be happy, because the situation in Greece will delay the euro adoption. The prospects to join the euro area have changed and, unless Romania proves that is able to fulfill the medium-term criteria, we won’t adopt the euro,” Stolojan told a conference.

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

Late March, the International Monetary Fund’s head 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.

Delaying the euro adoption by one or two years might even be a good thing for Romania, IMF Managing Director Dominique Strauss-Kahn said at the time.

Stolojan, a former prime minister and finance minister of Romania, didn’t speculate as to when Romania will be able to join the eurozone, but said the country should focus on increasing productivity and competitiveness.

„Any other subterfuge can only do us harm,” he said.

The MEP added that the recession in Romania will be very difficult to overcome, because the Eastern European country was unprepared.

Romania’s only chance is to implement monetary and fiscal reforms, Stolojan said.

„Romania hasn’t got the time to delay vital reforms any longer. The country’s current fiscal resources are at 31%-32% (the fiscal revenue ratio to the gross domestic product – e.n.), while the EU average is at 39%-40%,” he added.