Romania Secures Euro Adoption Agreement Amid Ongoing Government Uncertainty

Romania has reached a political agreement to adopt the euro as its national currency, according to President Nicusor Dan. The agreement was made despite the failure of centrist parties to agree on a new government following the Social Democrats' attempt to overthrow Prime Minister Ilie Bolojan.

The agreement includes maintaining Romania's fiscal trajectory and preparing the 2027 budget before the end of this year, regardless of the composition of the future government. Additionally, the roadmap for switching to the euro will be drawn up by the future government and the National Bank (BNR).

Romania had previously set a target of adopting the euro in 2029, with the goal of entering the EU's Exchange Rate Mechanism II (ERM II) in 2026. However, the country remains far from meeting most of the economic conditions required for adoption.