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Minister Dragu: Romania does not access euro in 2019, real convergence is necessary
Romania does not assume 2019 as the year of euro accession, the real date needs a political and social consensus and a better understanding of the necessary efforts to reach this objective, the Convergence Programme 2016 shows, which was approved on Wednesday by the government.
‘The government keeps its commitment to access the euro zone. A concrete date will be established after the schedule is made, to be finalised before the next edition of the convergence programme’ stated at the end of the meeting of the government the minister of finances Anca Dragu.
She mentioned that it is important that Romania has a real convergence to euro, namely the income of the population to be 70-80 percent of the average of the monetary area, and in Romania this indicator is 55%.
‘We are talking about the GDP per inhabitant, the income of the whole society, the income of the population and we think that we need flexibility and competitiveness in the Romanian economy’ the minister said.
She mentioned that the government continues the necessary reforms for the growth of economy.
‘In the present budgetary planning we estimate a budgetary deficit in ESA terms of 2.95% of GDP and a deficit of 2.9% of GDP for next year. We expect a deviation from the budgetary target for medium term in 2016 and 2017 mainly as a result of the tax reductions approved in the new Fiscal Code and by the increase of some social assistance rights decided in 2015’ Dragu said.
‘The programme of convergence edition 2016 relies on the provisions of the Fiscal-budgetary strategy and the updated macroeconomic framework for 2016-2019. The economic growth estimated is 4.2% in 2016 and 4.3% in 2017. By the present national budgetary planning we estimate that the budgetary deficit will not surpass the reference rate of 3% of GDP in 2016 and 2017 and will go back on track in 2018 -2019. At the same time, a deviation from the target regarding the objective on medium term in 2016 and 2017 as a result of the measures in the new Fiscal Code and the salary increase approved in 2015. Starting 2018, this trend will change’ the press release of the government shows.