Not Only Economics: The Political Economy of Euro Adoption in Romania



The multifaceted interplay of economic and political factors in the process of euro adoption suggests the opportunity to take a political economy perspective on this complex issue. In this sense, a number of key political-economy related issues can be distilled in relation to the process of euro adoption, which will structure the following analysis. What are the key national winners and losers of this possible event? What role has interest groups pressure played in this process? Under what circumstances may bureaucracies such as the central bank body of experts act as a deterrent for the political end that is the single currency adoption? How are internationally exposed companies expected to behave and to promote their interests in relation to this event? What is the relative importance of the internal politics dynamic for euro adoption? We rely on process tracing to approach these questions for the Romanian case. Policy documents, newspaper articles, academic articles, economic indicators, and elite interviews are used to create an analytical narrative based both on a one-point-in-time description of the situation and on a timeline that lists the sequence of some relevant events. We argue that a specific combination of economic and political factors led to the failed euro adoption in Romania.

Full Text:



Actmedia (2018, Dec. 3). Report recommends 2026 as the year for Romania's accession to the euro zone. Retrieved from

Bernhard, W., Broz, J.L., & Clark, W.R. (2002). The political economy of monetary institutions. International Organization, 56(4), 693-723. doi: 10.1162/002081802760403748.

Bagus, P. (2010). The tragedy of the euro. Auburn, Alabama: Ludwig von Mises Institute.

Broz, J.L., & Frieden, J. (2001). The political economy of international monetary relations. Annual Review of Political Science, 4, 317-343. doi: 10.1146/annurev.polisci.4.1.317.

Business Review (2014, June 16). Parliament votes on BNR’s new management: Mugur Isărescu, confirmed for 5th governor term. Retrieved from:

Caleaeuropeana (2013, May 8). Exclusive interview with the Romanian President Traian Băsescu. Retrieved from

Constitution of Romania (1991). Retrieved from

Chiriac, M. (2015, May 29). Romanian president urges consensus on euro. Balkan Insight. Retrieved from

Collier, D. (2011). Understanding process tracing. PS: Political Science and Politics, 44, 823-830.

Dandashly, A., & Verdun, A. (2015). Boarding the euro plane: euro adoption in the Czech Republic and Slovakia. Review of European and Russian Affairs, 9(2), 1-26.

Dandashly, A., & Verdun, A. (2018). Euro adoption in the Czech Republic, Hungary and Poland: Laggards by default and laggards by choice. Comparative European Politics, 16(3), 385-412. doi: 10.1057/cep.2015.46.

EC (2018). Convergence report. European Commission. Brussels, Belgium.

EC (2011–2018). Introduction of the euro in the member states that have not yet adopted the single currency. Flash Eurobarometer 329, 349, 377, 418, 440, 453, 465. European Commission. Brussels, Belgium.

Eichengreen, B., and Frieden, J. (1993). The political economy of European monetary unification: an analytical introduction. Politics & Economics, 5(2), 85-104. doi: 10.1111/j.1468-0343.1993.tb00069.x.

Europuls (2019). Ghidul alegătorilor români informați [The guide of informed Romanian voters]. Retrieved from

Feldstein M. (1992, June 13). The case against the euro. The Economist.

Feldstein M. (1997). The political economy of the European economic and monetary union: political sources of an economic liability. Journal of Economic Perspectives, 11(4), 23-42. doi: 10.1257/jep.11.4.23.

Frankel, J.A., & Rose, A.K. (1998). The endogeneity of the optimum currency area criteria. Economic Journal, 108(449), 1009-1025. doi: 10.1111/1468-0297.00327.

Frieden, J. (1998). The euro: who wins? Who loses?. Foreign Policy, 112, 24-40.

Frieden, J. (2002). Real sources of European currency policy: sectoral interests and European monetary integration. International Organization, 56(4), 831-860. doi: 10.1162/002081802760403793.

Friedman, M. (1997, Aug. 28). The euro: monetary unity to political disunity?. Project Syndicate. Retrieved from

Georgescu, F. (2017). Convergența reală – criteriul fundamental de aderare la zona euro [Real convergence – fundamental criterion for joining the Eurozone]. Presentation at the EU-COFILE seminar. November 22. Sinaia, Romania. Retrieved from

Gheorghe, G. (2017). Grindeanu: Romania will adopt euro after Romanians’ incomes reach EU level. Business Review. April 10. Retrieved from

Haughton, T. (2010). Vulnerabilities, accession hangovers and the presidency role: explaining new EU member states’ choices for Europe. Working Paper Series 68. University of Birmingham, UK.

Isărescu, M. (2007). România: drumul către euro [Romania: the path to the euro]. Paper presented at the conference organized by Colegiul Academic al Universității Babeș Bolyai. Retrieved from

Isărescu, M. (2008). Probleme ale convergenţei reale în drumul spre euro [Problems of real convergence on the path to the euro]. Bucharest: Academia Română. Retrieved from:

Isărescu, M. (2013). România și zona euro [Romania and the Eurozone]. Presentation at the international conference ESPERA. December 11. Bucharest, Romania. Retrieved from

Isărescu, M. (2015). Nominal convergence versus real convergence. Presentation at the conference Romania’s Path towards Euro. April 20. Bucharest, Romania. Retrieved from

Johnson, J. (2006). Two-track diffusion and central bank embeddedness: the politics of euro adoption in Hungary and the Czech Republic. Review of International Political Economy, 13(3), 361-386. doi: 10.1080/09692290600769245.

Johnson, J. (2008). The remains of conditionality: the faltering enlargement of the Eurozone. Journal of European Public Policy, 15(6), 826-841. doi: 10.1080/13501760802196564. (2011, Nov. 11). ‘Don't laugh’: Romania still wants to join the euro. Retrieved from:

Marinas, R.S. (2018). Romania’s ruling party congress votes to join euro in 2024. Reuters. March 10. Retrieved from

Mediafax (2009, Feb. 25). Romanian gov’t plans to speed up euro adoption. Retrieved from

Mundell, R.A. (1961). A theory of optimum currency areas. American Economic Review, 51(4), 509-517.

National Commission for the Development of the National Plan to Adopt the Euro Currency (2018). The National Plan for the Adoption of the Euro. Retrieved from

Romania Insider (2017, Oct. 3). Car industry is the Romanian economy’s engine. Retrieved from:

Șimandan, R., Leuștean, B., & Dobrescu, R. (2017). Romania and the euro. The state of the debate. International E-Journal of Advances in Social Sciences, 3(8), 450-458. DOI: 10.18769/ijasos.336975.

Triandafil, C.M. (2011). The analysis of the convergence criteria. Empirical perspective in the context of the sustainable character highlight (No. 111205). Working Papers of National Institute of Economic Research. The Romanian Academy.

Voinea, L. (2017). România în zona euro: când și cum [Romania in the Eurozone: when and how]. Paper presented at the Annual Reunion of the Romanian Diplomacy. August 31. Bucharest, Romania. Retrieved from


  • There are currently no refbacks.

Copyright (c) 2019 Management Dynamics in the Knowledge Economy

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

© Faculty of Management (SNSPA)

Creative Commons License
This work is licensed under CC BY-NC

The opinions expressed in the papers published are the authors’ own and do not necessarily express the views of the editors of this journal. The authors assume all responsibility for the ideas expressed in the materials published.

ISSN 2392-8042 (online)