Adopting the euro is now “out of the question” by 2015 for Romania, according to the country's Central Bank (BNR) governor Mugur Isarescu. Quoted by the New York Times, Isarescu also said that in Romania “EU accession was seen as a panacea. The dreams were too high.” However, the BNR governor added that meeting the economic criteria for membership of the eurozone was a useful exercise and that keeping the budget deficit below 3 percent of GDP was good discipline.

Romanian business news service Ziarul Financiar spoke to BNR's Chief Economist Valentin Lazea about eurozone accession. According to Lazea, the timetable for adoption of the euro will be discussed by the new government following the December elections, but pointed out that this will make joining the Exchange Rate Mechanism (ERM) in January 2013 unlikely. Accession to the eurozone requires a minimum of two years' membership of the ERM before adopting the euro. The timeline makes 2015 membership improbable, but, Lazea added, the readiness of the eurozone to take on new members as well as the wisdom of rushing to join the euro, given the ongoing financial crisis, is questionable.

BNR governor Mugur Isarescu also pointed out the greater freedom Romania has had in implementing economic policies while keeping its own national currency. This independence has given Romania choices that countries such as Greece and Spain simply haven't had, such as adjusting interest rates, controlling liquidity and allowing the leu to depreciate.

The New York Times reports on a general cooling in enthusiasm for the euro across Central and Eastern Europe; the Czech Republic will hold a referendum on membership in 2020, Hungary has ruled out joining until 2018 at the earliest, while Poland's Prime Minister has recently described the euro as “completely unattractive.” Romania, like all the other new EU member states in the region, pledged to eventually join the euro as part of the accession agreement.

Liam Lever, liam@romania-insider.com