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Report: EC economic recovery plan could help Romania apply measures beneficial to convergence process
The economic recovery plan of the European Commission has the potential to help Romania apply structural reform and correction measures at macroeconomic level, which will have beneficial effects on the convergence process and preparation for joining the euro area, according to the report “Romania – Euro Zone, Monitor.”
The document points to the fact that Romania has become, once the procedure of excessive deficit was triggered, the only EU member state which no longer observes any of the Maastricht criteria in a substantial way.
“Romania's government maintains, according to provisions of the Convergence Plan 2020, its engagement to join the euro zone. However, in the context of Covid 19 pandemic, efforts are made mainly to reduce its negative effects and to implement measures of economic relaunch, the attention of authorities being focused on adopting euro as soon as macroeconomic balance is re-established. In this context, the EC Plan for economic recovery has the potential to help Romania apply structural reform measures and macroeconomic correction, which will have beneficial effects on the process of conversion and preparation to join the euro zone,” the report shows.
According to the document, it is important to complete foreign support with domestic economic approaches for the development of a robust economy, with reduced deficits, considering that the euro zone has its own insufficiency.
The report mentions that BNR was deeply involved in the elaboration of the report substantiating the accession to euro zone and of an action plan, documents which were made in 2018. Governor Mugur Isarescu is vicepresident of the National Commission which guided the elaboration of the report and action plan. The National Commission, headed by the president of the Romanian Academy and the prime minister of the Romanian Government also included representatives of the Romanian presidency, of political parties, unions, business circles and civic organizations.
BNR experts, next to specialists from other public institutions and researchers from the Romanian Academy, participated in the elaboration of documents mentioned. This is the context which led to making the Euro Group within BNR. This group focuses on the way in which Romanian economy joins demands of nominal, real, structural, juridical and institutional convergence with the euro zone.
Euro Group can be seen as a follow up of the activity of the National Commission. This action materialized in a periodical analysis “Romania – Euro Zone Monitor”, prepared for the leaders of the National Bank of Romania and other decision makers in Romania.