Eurozone Crisis: 'Don't Laugh' But Romania Still Wants The Euro

Romaniaeuro

Huffington Post UK   First Posted: 11/11/2011 11:20 GMT Updated: 11/01/2012 10:12 GMT

Politicians rarely begin their economic announcements by imploring the audience not to mock them, but Romanian President Triain Basescu told reporters in Germany on Thursday that despite the ongoing speculation that the single currency area is on the verge of splitting up, he still wants to join.

"Please don't laugh," Basescu said. "We want to join the eurozone in 2015."

The country is currently working to meet the entry criteria, which include having inflation no more than 1.5% higher than the EU's best performing members; a government budget deficit of less than 3% and a debt-to-gross domestic product (GDP) ratio of less than 60%; long term interest rates no more than 2% above those of the three member states with the lowest inflation.

Romania joined the EU in 2007, and under the 1992 Maastricht Treaty, which created the single currency, should also join the euro once those criteria are met. The country's inflation and budget deficit are some way off, and it is yet to sign up to the European Exchange Rate Mechanism (ERM), a preliminary step towards entering the monetary union.

The country was hit hard by the financial crisis, experiencing a deep recession. It received a $17bn credit line from the International Monetary Fund (IMF) in 2009.

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Politicians rarely begin their economic announcements by imploring the audience not to mock them, but Romanian President Triain Basescu told reporters in Germany on Thursday that despite the ongoing s...
Politicians rarely begin their economic announcements by imploring the audience not to mock them, but Romanian President Triain Basescu told reporters in Germany on Thursday that despite the ongoing s...
 
 
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02:21 PM on 11/13/2011
This is good news that Romania will join the euro countries. They should have maybe (perhaps) a better economic future.
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JPalka
09:38 PM on 11/12/2011
Well, the countries joining now, will be on a lot better footing (by themselves) than the ones joining from the beginning. I do not think the Greece MO can repeat, so this should be on a lot better footing if it happens. Romania will be advantaged to be allowed in but EU will benefit too, and the risk of default will still be with the countries already in, now.
04:33 PM on 11/12/2011
"Don't laugh", nobody is mate, but we can see how Greece benefited from joining the Euro with their fabricated balance sheets, no doubt our heroes are in some back room trying to have us deeper in the quagmire of Europe and its currency when all we really want is a say in the subject. The whole reason the commonwealth has been divorced from this country for years was so we could only trade in this common market at increased expense, we're being robbed of our roots and former friends all so that the french and germans can lord it over us without firing a shot, some bloody democracy we have with this lot about, let Romania have the Euro, let us have a referendum and some honest politicians for a change.
07:40 AM on 11/12/2011
Romania is a country looking to the future not the past.
02:25 PM on 11/13/2011
It's important to see the future , because they can change the present and they will have life better.
02:25 PM on 11/13/2011
You have reason.
06:31 PM on 11/11/2011
Actually it makes sense for countries like Romania to join the Euro. Their borrowings will already be in Euros and the oft quoted benefit of devaluation would be an illusion because any stimulus through lower currency would be outweighed by the effective increase in debt.

Latvia was in such a position and it maintains an exchange rate linked to the Euro and had all its borrowing denominated in Euros. When it got into trouble it recognised the foolishness of devaluation and it continued its exchange rate policy with the help of the IMF and Scandinavian neighbours . It got over its recession and has now been able to raise finance again on the international market.
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HUFFPOST SUPER USER
OPeixe
Shouldn't we move beyond the ideas?
05:27 PM on 11/11/2011
The Euro Zone will grow, it's the only way for European countries to compete in the 21st century economy, it has nothing to do with not going to war with each other, that's a very British 20th century mindset, but it's not the truth of Europe.

Now Britain and others in the EU that are not in the Euro Zone are really scared, because they know that Euro Zone will start handling the economy for their own interests which will probably not be the interests of the countries outside, the UK and Denmark are the only ones that can stay in the EU without joining the Euro. But in the next decade they will face a real hard position if they don't. Let's see what can Uncle Sam do for you then.
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European1919
I am the PigmⒶn
01:48 PM on 11/11/2011
Did you think after your ratings agencies (all of them US companies) have all but destroyed several European economies by their downgradings, people would suddenly fall in love with your dollar? A currency completely based on thin air? No one can be that stupid.
11:21 AM on 11/12/2011
The U.S. do not want to be overtaken by China
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European1919
I am the PigmⒶn
08:01 AM on 11/14/2011
So invade China, but leave us alone. If this is the way you treat your "friends" we can well do without you.