Euro Adoption Amid Reshaping EMU : The Case of Romania

Adopting the European single currency is reevaluated amid changing environment of the existing euro area. In this paper we are mapping those divergences among member countries that challenge the optimal currency area (OCA), at least from a theoretical perspective. Nevertheless, the decision to join the European Monetary Union (EMU) should be based on balancing the advantages versus disadvantages. This paper focuses in particular on competitive advantages among member countries and factors that stay behind the accumulated imbalances and cross-country differences. Three alternative scenarios of EMU and of Romanian accession are also discussed