Is Romania Ready for Adopting Euro?

Abstract

The common monetary policy is applyed in all member states of the Economic and Monetary Union(EMU), having a common institutional system, common European currency and system of regulations that helps them coordinate the banking activities in all EMU. The application of this policy has brought remarkable results so far, settling the monetary market in the euro zone. But, the new European Union member states have to apply these common rules and regulations in order for them to accede to EMU, which could produce both positive and negative effects, especially given that most of their economies are not yet ready for this king of changes. It is Romania’s situation as well, having had the target set on acceding this by 2014. But is the Romanian economy ready for such a change? And how close is Romania to achieving the convergence criteria?