The European Commission’s recent Convergence Report sheds light on the progress of several EU member states aspiring to adopt the euro, including Romania. While the euro is already the official currency for 20 EU nations forming the Eurozone, most other EU countries, except Denmark, are legally bound to join. Romania is among the six nations actively striving towards this economic integration.
This bi-annual report evaluates each country’s readiness based on stringent criteria encompassing price stability, sound fiscal policy, exchange rate stability, and convergence of long-term interest rates. The latest assessment indicates advancements across all six nations—Bulgaria, Czechia, Hungary, Poland, Romania, and Sweden—yet none currently satisfy all prerequisites for Eurozone entry.
Specifically for Romania, the 2024 Convergence Report highlights a mixed bag of progress. While Romania has demonstrated fulfillment in certain areas, it, like its counterparts, still needs to meet all benchmarks to qualify for euro adoption. Bulgaria, for instance, meets the exchange rate criteria and, along with Sweden, fulfills the public finances criteria. Sweden also achieves price stability, while Bulgaria, Czechia, and Sweden satisfy the long-term interest rate criteria.
These convergence reports play a crucial role in the Eurozone enlargement process. Issued every two years, or upon a member state’s request, they inform the Council of the EU’s decision on whether a country is eligible to adopt the euro. Croatia was the most recent nation to join the Eurozone in 2023, demonstrating the ongoing evolution of the currency area.
The euro’s significance extends beyond the Eurozone, as the second most-used currency globally, facilitating daily transactions for nearly 350 million people. Interestingly, a recent survey reveals that a majority of citizens in non-Eurozone EU countries anticipate positive impacts from euro adoption for their nation and personal finances. Overall, 58% of respondents expressed support for their country embracing the euro. For Romania, aligning with this trend and continuing progress towards meeting the convergence criteria remains a key focus for future economic policy and integration within the European Union.
For further details on the convergence process and the euro, refer to the following resources:
Press release: Convergence Report reviews Member States’ progress towards joining the euro area
