THE EURO ADOPTION – A RECENT CHALLENGE, BUT WITH A FARAWAY RESULT
THE EURO ADOPTION – A RECENT CHALLENGE, BUT WITH A FARAWAY RESULT

Summary/Abstract: This work has the purpose to analyse the level of Romanian preparation in the process of adoption of a sole European currency and to seek answers to three questions: ”Is Romania ready to adopt the euro?, What involves the adoption of the euro?, Which are de benefits and risks of euro adoption in Romania?”. Real convergent criteria are analysed and have the goal and the necessity to fulfil ex-ante criteria from Maastricht, inclusively through the durable tax consolidation, which can lead to the maximization of the probability that Romania could limit the duration of the participation to exchange rates ERM II to the 2 obligatory years. The ERM II is a newly introduced system to reduce the variation of exchange flow which has the purpose to obtain economic stability in Europe. The entrance in ERM II is the precedential step to adhere to the euro area, the step in which the national currency needs to fluctuate between an interval of 15 % from the euro. Romania did some important progress during the last years both in terms of nominal convergence, as well as real, yet they are necessary hereinafter for the economy to be up to a sole monetary area. Balancing the advantages and disadvantages for euro adoption, the work states out the fact that euro adoption does not need to be treated as a sole purpose, the moment of adherence being a Romanian decision according to the efforts which the country will consign to achieve the level of development which can allow the sole monetary adoption.

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