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

Borissov To Examine Trakia Highway Repair Work In May

Prime Minister Boyko Borisov inspected the Thrakia motorway repairs, aiming to make sure that for the beginning of the summer season, June...

Banks In London Are Flocking To Frankfurt

Banks which are seeking for a new European financial centre after Brexit have so far turned their preferences to Frankfurt, according to a study by German...

China Pours Billions In Southeast European Infrastructure Projects

Infrastructure projects in the Western Balkans have attracted billions of dollars of Chinese investments under Beijing's Belt and Road Initiative (BRI) over...


ABB Opens New Factory Plant In Petrich Creating 420 Jobs

The industrial giant ABB opens its newest plant in Bulgaria on September 17th. The new facility is the company's second investment in Petrich and the fifth manufacturing facility...

Bulgaria And North Macedonia To Collaborate On Tackling Corruption

Bulgaria and Northern Macedonia must work together to create an environment of intolerance for corrupt practices. The interior ministers of the two seniors, Mladen Marinov...

Bulgaria’s Population Problem

Bulgaria is a country in Eastern Europe, more specifically the Balkans, it is currently going   through major economic changes. The country is the poorest...