Adoption of the euro by Romania
Romanian National Bank has a balanced approach on the matter.
06 Iunie 2019, 00:15
Adoption of the euro by Romania has been a topic for debate on Tuesday at a conference on the issue. Governor of Romanian National Bank, Mugur Isărescu, pointed out that the convergence criteria need to be met, namely: price stability, inflation below 1.5%, solid and sustainable public finances, a deficit of less than 3%, stability of the exchange rate and a convenient long-term interest rate.
It is equally important to keep pace with the adoption of the euro, Mugur Isărescu said, stressing that the approach of the National Bank on the matter is a balanced one.
Mugur Isărescu: "To be successful in adopting the euro, you have to be a marathoner rather than a sprinter. I would like to say (…) that the Latin proverb "Festina lente" perfectly fits our approach. Taking time on the path of convergence means getting a sustainable medium and long- term rhythm. In addition, we should be aware that the convergence process is a continuous one that will also take place after joining the Eurozone".
Jeffrey Franks, Director of the International Monetary Fund – Europe Office, stressed at the same Eurozone conference that countries like Romania and Bulgaria aspiring to join the EU must meet certain criteria, have robust and supervised financial sectors, and institutions quality.
Jeffrey Franks: "I think that the key element here is the quality and governance of the institutions. It will be a determining factor. When I hear people in Romania attacking the Central Bank's independence, I think this does not put you in the direction of getting closer to becoming a member of the Eurozone. When we see a series of values which are not positive for other institution indicators, they show some areas where there is still work to be done".
In order to create a more resilient Eurozone, the IMF representative said that a centralized fiscal capacity, more determined steps towards the union of capital markets and strengthening of the fiscal rules would be needed, as RRA Reporter Iulian Olescu said.
Source:RRA.Translated by Miruna Matei
