Romania Embraces the Euro as its Official Currency in 2029

In a significant milestone, Romania has made the momentous decision to adopt the euro as its official currency in 2029, becoming the 22nd member state of the European Union (EU) to do so. The move follows the footsteps of Bulgaria (2024) and Croatia (2023), as Romania diligently worked towards fulfilling the stringent criteria set by the EU for eurozone membership.

Upon joining the EU in 2007, Romania embarked on a path to strengthen its financial standing, ensure stability, and enhance flexibility to meet the requirements for euro adoption. By 2014, the country had made notable progress, successfully fulfilling four out of the seven necessary criteria

However, in subsequent years, Romania faced various setbacks that posed challenges to its euro adoption aspirations. The European Commission's Convergence Report of 2020 highlighted the country's inability to meet criteria related to price stability, public finances, exchange rate, and long-term interest rates

Undeterred by the setbacks, Prime Minister expressed confidence that Romania could join the eurozone by 2027 or 2028. As a precursor to full euro adoption, Romania joined the EU's exchange rate mechanism (ERM II), which required addressing concerns regarding the budget deficit to GDP ratio, inflation rate, long-term interest rate, and compatibility of legislation.

  After diligently meeting all the criteria and demonstrating two years of stability, Romania's entry into the eurozone was finally approved. The leu, Romania's national currency since 1867, is set to be replaced by the euro in 2029, marking a significant milestone in the country's economic integration into the EU.