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Olteanu, BNR: Romania must establish targets to access euro zone

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Romania should establish a series of intermediate annual targets for domains and reforms until the accession to the euro are, so that competitiveness, the real convergence of economy and the capacity to cope with euro zone conditions should increase, the BNR deputy governor Bogdan Olteanu said.

“We know when we join the euro zone, it is a political decision. When the decision was made the political dimension disappears. If establishing a calendar is a decision of representatives, carrying out conditions, especially about competitiveness, the real convergence of Romanian economy, our capacity to live there, to produce and consume there, without diverging from the positive European model means to increase out competitiveness. Here we must reach a consensus to establish a path which supposes a series of intermediate targets,” said Olteanu on Tuesday at a seminar on economic topics.

In his turn, the president of Bucharest Stock Exchange, Lucian Anghel considers that the target of adopting euro currency in 2019 is very ambitious, but not impossible to achieve and says that clear objectives should be set.

 

“Following the public announcement the detailed plan is very important because it should ensure the basis of a better living standard for the Romanians, as it means the increase of per capita GDP, it means we are more efficient, therefore it will be normal to have higher salaries. That is the most important thing coming after the public announcement. It is not the date itself that is important but the fact that we have this project with detailed deadlines, with responsible institutions,” Anghel said.At the same time he considers that Romania should not extend too much the period of remaining within ERM II.

Olteanu reminded that the country has problems concerning the economy to which the state is shareholder, immigration reform or the aging population , having as options a higher borth rate or the labor force import.

 

“We are an aging society and if we and those who come after us do not decide to have more kids, as the French have decided, we will have to invite other people to work in oru country, as the Germans have done. It is a reality we have to assimilate, socially, culturally and then institutionally, but it is a reality we have to prepare as of now because we risk to wake up too late,” Olteanu pointed out.

The deputy governor considers that the structure of the people’s occupations should be reformed, so that people from the rural area should work in the urban area, joining the people from industry and services.

 

“We must back the development of infrastructure, especially crossing the mountains and the reform of education and we should offer those areas qualified labor force,” the BNR official said.

As for bank disintermediation he said BNR sees its effect as natural after capital incomes, but Romania’s joining the European Banking Authority may bring disintermediation or the reverse.

“I would say there are two effects joining EBA could have: one refers to capital flow and the other to costs,” Olteanu mentioned.

 

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