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Isarescu:The criteria of convergence connected to inflation and interest rates will be achieved this summer
Inflation and interest rates to the national currency will be achieved this summer, within the limits established by the criteria in Maastricht for the adoption of the single European currency, stated on Monday the governor of the National Bank of Romania, Mugur Isarescu, in a seminar ‘ Changes in the Romanian economy’.
‘Finally we got into the group, in the group of those who hope a nominal convergence at accession to the euro zone. We expect that at the end of this spring and the summer of this year the criteria of nominal convergence connected to inflation and the interest rates be achieved. It is not our message that we will jump to state that we will get into the euro zone in a few years. We get there when we are ready. This is a political decision. But the message is that we are not behind the others, and this should be discussed’ the BNR governor said.
Referring to 2018 as advanced by premier Victor Ponta as the target for the euro adoption by Romania, the head of the central bank said that this project must be accepted, either in a written document as it happened in the case of the accession to the EU in 2000 or even in a more conflicting manner as it happened with the agreements with the international financial institutions after 2008.’Romania needs a fixed term for euro adoption. Some say: look, the premier said 2018 which seems to be a motivating target – 100 years since the formation of the Great Romania. Yes, there is one condition beyond this aspect. Beyond the project and the target, at least for a part of us, economists and political people to understand that. If we understand differently, each one piece, the project is unachievable.’ Mugur Isarescu said.
He said that the economy registered over the last period remarkable progress. ‘We got in the area of a deficit of current account, which is financially feasible, less than the capital inflows or autonomous funds’ Isarescu said.
He added that, if foreign direct investments are joined with European funds, there comes a larger sum than the deficit of current account. ‘This means something sustainable. If this happens even the issue of sustainability of the criteria of convergence, including the inflation is one which we could consider solved’ the BNR governor explained.
He referred to the positive evolution of industry. ‘If we see the synthetic figures we notice that in the 90’s the share of industry in the GDP dropped from 40% to 25% and now it went back to 31%. The industrial orders increased in February by 20% against last year and the last 12 months met with an increase of 15%. In 2013 we had growth of 8%, which is very much’ Mugur Isarescu said.