Ro­ma­nia’s rul­ing party says no euro de­ci­sion has been made

Malta Independent - - BUSINESS -

A se­nior Ro­ma­nian politi­cian has down­played spec­u­la­tion that the coun­try is plan­ning to adopt the euro as its cur­rency by 2022, say­ing fur­ther eval­u­a­tion work is re­quired be­fore any de­ci­sion is made.

Liviu Drag­nea, chair­man of the rul­ing So­cial Demo­cratic Party, said Tuesday that the gov­ern­ment had not had a “se­ri­ous anal­y­sis” about re­plac­ing the leu with the euro, which is cur­rently used by 19 Euro­pean Union coun­tries. His com­ments fol­low a sug­ges­tion last week from For­eign Min­is­ter Teodor Me­les­canu that Ro­ma­nia could start us­ing Europe’s sin­gle cur­rency by 2022.

Drag­nea said a study needed to be con­ducted in­volv­ing the cen­tral bank, the gov­ern­ment and par­lia­ment, be­fore any de­ci­sion is made.

The for­eign min­is­ter said later Tuesday he had sim­ply been ex­press­ing an opin­ion about when Ro­ma­nia would be ready to change its cur­rency. He noted that the bud­get deficit is fore­cast to be 3 per­cent of Ro­ma­nia’s an­nual GDP this year — in line with euro rules — and in­fla­tion is low. He also said that in­tro­duc­ing the cur­rency could have “a so­cial im­pact ... es­pe­cially for those on low in­comes.”

Ro­ma­nia has one of the fastest­grow­ing economies in the Euro­pean Union. It’s ex­pected to ex­pand by 5 per­cent this year, more than dou­ble the an­tic­i­pated rate for the eu­ro­zone.

De­spite that growth, Ro­ma­nia re­mains one of the poor­est mem­bers of the 28-coun­try EU.

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