Romania meets the Maastricht criteria since 2015, central bank Governor says

Romanian economy cumulatively meets the Maastricht criteria for adopting the euro, unceasingly since 2015, the National Bank Governor Mugur Isarescu said on Friday, during the session “Romania in the European Union” at the Romanian Academy.

“In regard to the stage and prospects of Romanian economy’s convergence, it’s worth mentioning that it meets the Maastricht criteria, unceasingly, since July 2015. It was the time when we were approaching the eurozone. It’s a notable performance, achieved following sustained efforts for years. It’s very important that economic policies of Romanian authorities ensure the meeting of these criteria further on. The fact that today we meet them does not mean we’ll have the same situation in a year of two, if we do not apply the adequate policies,” Mugur Isarescu said.

The BNR governor claims sustainability is needed, stressing it matters how fast an economy grows as well as the way it grows.

Isarescu said the economy’s potential is affected by the delay in public investments and in carrying out structural reforms. He opined a priority should be the solving of problems that hamper the fast development of these sectors.

In his view, adopting the euro without meeting a high convergence level of income per capita is counterproductive, as a too large gap of real convergence brings risks, including in complicating the management of economic cycles, in the absence of an independent monetary policy.

Isarescu said that, after ten years since joining the European Union, the balance sheet is positive, although the pathway of Romanian economy hasn’t been as smooth as intended. The central bank Governor says we should not abandon the project of joining the eurozone, but we should approach it cautiously, in a responsible and comprehensive manner.

Mugur Isarescu underscored the importance of understanding the importance for us, as Romanians and Europeans altogether, of consolidating the European Union.