ECONOMY FINANCE&BANKING

BNR’s Isarescu: Romania must adopt at one point euro currency; problem is when and not if

Romania has to adopt at one point the euro currency, the problem is when, and not if, because we don’t have the opt-out option, Governor of the National Bank of Romania (BNR) Mugur Isarescu stated on Thursday at the “Good Governance Summit.”

“From a judicial perspective, adopting the euro currency it’s something that has been done, because, excluding UK and Denmark, Romania doesn’t have the opt-out option of the economic and monetary union. This means Romania must adopt at one point the euro currency. For Romania the problem is not if, but when, because we don’t have the opt-out option,” Mugur Isarescu stated.

He underscored that the management of the euro adoption process is left to the discretion of states, despite the de jure commitment of adopting this currency.

According to Isarescu, Romania meets the nominal criteria of Maastricht, but, besides these, there is a need of real convergence.

Moreover, the Governor mentioned that the states which adopted euro, namely Latvia, Lithuania, Estonia, Slovakia, Slovenia, are small countries, that have a different geopolitical situation from Romania and a different level of real convergence. Larger states, with a flexible exchange rate regime, such as Hungary, Poland, the Czech Republic and Romania are more careful in respect to adopting the euro currency, and their situation is different. None of these countries have once announced the implementation of the euro currency,” Mugur Isarescu added.

The BNR Governor drew attention over the fact that an area with a single currency isn’t a place for economies with competitiveness problems and that there is a need of completed structural reforms in order to be successful.

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