The Romanian Finance Ministry announced that official plans for EUR adoption in 2019 have been scrapped, leaving the decision regarding the new target up to the next government, which will be formed following the election later this year, the report also reads.
ING analysts view this news as positive for the longer-term outlook as it will give Romania more time for the structural reforms necessary to make EUR adoption a success story.
Romania has officially dropped 2019 as its target for euro adoption, according to the 2016 convergence program approved by the government Wednesday. The country maintains its goal to adopt the single European currency but a new target will be set by the next government and included in the 2017 convergence report.
Finance Minister Anca Dragu said Romania must reach real converge before adopting the euro, meaning people’s income should reach 70-80% of the eurozone average, while Romania is currently at 55%.