Why is it so important for a non-EUR EU member to adopt EUR currency?

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I live in a non-EUR EU member (Romania) and I keep hearing for several years about the aim for EUR adoption. Technically, there are several criteria (EUR convergence criteria) that must be met in order to be able to adopt the European currency.

According to this Wikipedia article Romania has more than 10 years of discussions about EUR adoption, with many delays of target adoption year (currently it is 2022).

the foreign minister of Romania has declared on the 28th of August 2017 that, as they "meet all formal requirements", Romania "could join the currency union even tomorrow". However, he thinks Romania "will adopt the euro in five years, in 2022"

Also, this answer illustrates numerous disadvantages generated by having a global currency - e.g.:

  • trade deficit
  • bad policies in one area get exported to other areas
  • countries can't devalue their currencies so as to increase employment

Question: considering above arguments, why is it so important for a non-EUR country to adopt the European currency? There are clearly some advantages (e.g. easier trade), but there are also numerous disadvantages.

Alexei

Posted 2017-10-06T11:36:10.513

Reputation: 43 325

Question was closed 2017-10-08T19:33:15.053

2The number one goal of the euro is to ensure ever tighter political integration, which would eventually lead to a full scale federation. Economic considerations are secondary concerns. – JonathanReez – 2017-10-06T11:38:35.090

1@JonathanReez - yes, but this is mostly EU politics, not a specific country politics. I am mostly interested in why the specific country politicians are promoting this, especially when there are quite some disadvantages from country's perspective. – Alexei – 2017-10-06T11:42:12.400

Could you clarify the question to make it explicit whether you're asking "why is EUR adoption so important for the country in question" or "why is EUR adoption by more countries so important for the EU"? – Peter Taylor – 2017-10-06T11:42:17.033

1@PeterTaylor - for the country in question (which is currently outside of EURO zone, but within the European Union). For the EU, I think JonathanReez' comment is applicable. – Alexei – 2017-10-06T11:44:14.377

1Advantages for adopting the euro: 1. Having a stable currency. Many countries pre-euro had high inflation and while that has some advantages a devalueing currency isn't great news for people who actually have savings in that currency. Also many smaller countries are essentially at the mercy of traders/speculators who could easily crash those small currencies if they wanted. There is a reason many smaller countries actually had their currency pegged to those of larger european economies even before joining the euro. Being part of the euro gives you some sort of protection of those problems. – OH GOD SPIDERS – 2017-10-06T12:38:29.537

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  • Economic advantages through integration: I work in a small company (< 30 empl.). We simply do not have the manpower to deal with currency conversion in our it systems. The € is one of the reasons that allows us to operate outside our home country (The EU harmonized tax rules etc. are another big reason). We also work together with some polish partners, but that is only possible because they agreed that everything is priced in € and they basicly take all risks/work that comes from the currency conversion. Basicly: If you join the euro you are more likely to get orders from €-Countries.
  • < – OH GOD SPIDERS – 2017-10-06T12:51:54.393

    3@OHGODSPIDERS - you should consider developing your comments into an actual answer. – Alexei – 2017-10-06T12:53:52.183

    1And last but not least: 3. Its a status symbol. Joining the Euro allows polticians to claim that they have now advanced their economy enough to be considered part of "the big boys". – OH GOD SPIDERS – 2017-10-06T12:54:54.577

    @Alexei I might do that later, but currently I'm kind of short in time so i just wanted to scribble those points down without having to think to much about sources and/or good phrasing. – OH GOD SPIDERS – 2017-10-06T12:56:47.780

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