Romania & Croatia Also Looking For Euro Adoption

The three poorest European Union countries now have euro adoption in their crosshairs.

The latest is Romania, which said last week that it would present its strategy by the end of the year, rekindling an idea it shelved in 2015. It joins Bulgaria and Croatia in seeking a path to joining the currency bloc.

Doing so may help the Balkan nations stay close to the EU core as questions arise over the future distribution of crucial development funds.

“After Brexit, being outside the euro area might make you an outlier,” said Juraj Kotian, a Vienna-based economist at Erste Group Bank. “If you look at the prepared EU budget you’ll see there’s much more emphasis on the euro area. The European Commission wants to have this convergence facility for joining the euro, so countries need to take advantage of that.”

The three countries’ plans contrast with richer parts of the continent’s ex-communist east. While Slovenia, Slovakia and the Baltic nations of Estonia, Latvia and Lithuania all use the euro, Poland, the Czech Republic and Hungary have no firm plans to follow suit.

Greece’s experience of what can happen when independent monetary policy is surrendered hasn’t helped. But for the EU’s least affluent members, development funds may be needed for years to come as they seek to bridge the wealth divide.

Bulgaria’s preparations are the furthest advanced. The EU’s poorest nation, which holds the bloc’s rotating presidency, has already pegged the lev to the euro and wants to join the exchange-rate mechanism – the precursor to adoption – this summer. Croatia plans to switch to the single currency in five to seven years, while Romania – the most-populous of the three with 20 million people – has yet to reveal its new target date.

Romania wants to reach 70 per cent of the euro region’s average gross domestic product per capita by 2020, up from about 60 per cent now, according to the latest convergence programme approved on Thursday. “Setting a concrete euro-adoption date requires first an in-depth analysis, especially of the real, structural and institutional convergence,” the government said.

Read More

Eurohold Bulgaria’s Revenues Rise By 31%

Financial and insurance group Eurohold Bulgaria said on Tuesday its consolidated operating revenue increased by 31% year-on-year to 786.5 million levs ($450.0...

85% Of Graduates In Bulgaria Find A Job Withing 1 Year

Nearly 85% of graduates in Bulgaria aged 20-34, who graduated last year, have found a job and have successfully acquired the knowledge, show data from...

Ministry Of Pleven To Tackle Illegal Storage And Treatment Of Waste

A large-scale operation against the illegal storage and treatment of waste is carried out by the Ministry of Interior and the Prosecutor's Office in the city Pleven and the region...

Recent

Monbat Batteries To Buy 66.66% of Italian Competitor

Bulgarian car battery maker Monbat said on Friday that its board has approved the acquisition of a 66.66% stake in Italian...

Croatia’s Atlantic Grupa To Start Testing Autonomous Vehicles

ZAGREB (Croatia), March 28 (SeeNews) - Croatian food, drinks and distribution company Atlantic Grupa  opened a new logistics and distribution centre worth 20 million...

Philip Morris Opens Call Center In Bulgaria That Will Create 100 Jobs

Philip Morris International, the manufacturer of the iQOS tobacco heating unit, will invest in the creation of a call center in Bulgaria,...