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Lazea, BNR: we don’t have another alternative but accession to the euro zone, although there are some problems
Romania has no alternative from the economic point of view but accession to the euro zone, although it does not function well, stated on Friday Valentin Lazea, the head economist of the National Bank of Romania (BNR) .
‘Although the euro zone does not function well, Romania has no other alternative from the economic point of view. We can stay on the outskirts of the EU as some think, but it is not a solution. Accession to the euro zone means four sets of criteria: real convergence, judicial convergence, required by the EU Treaty ( more independence of the Central European Bank), nominal convergence and most importantly, cultural convergence. There is a Balchan-Mediterranean space where it is acceptable not to honour your promises and not pay your debts. Not the same thing happens in the central European space’ stated on Friday Valentin Lazea, the head economist of the BNR at the scientific session ‘ Romania in the EU’ organised by the Romanian Academy.
He showed that, in the area where we belong, economic growth relies on fiscal incentives, while in the west this relies on productivity.
‘This is a marathon and not a 100 metres one. Otherwise we will have what Greece had. They relaxed and look where they got’ Lazea said.
According to the Treaty for the functioning of the European Union there are four economic criteria for convergence which a member state has to observe to access the single European currency: stability of prices (the inflation rate cannot be over 1.5 percentage points over the rate of the three member states which have the best results), solid and sustainable public finances ( budgetary deficit cannot be over 3% of GDP and the public debt cannot be over 60% GDP) stability of the exchange rate (the candidate state has to take part in the mechanism of exchange rate (ERM II)for a period of at least two years without significant deviations from the central rate ERM II and without a devaluation of the bilateral central rate of their own currency against the euro during the same period) and the interest rates for long term ( the interest rate on long term should not be higher than two percentage point over the rate of the three member states which record the best results as regards the stability of prices).