Romania needs economic growth higher by 2 pp than Eurozone's to adopt euro in 10 years

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Romania needs an economic growth higher by 2 percentage points than the Eurozone's to be able to adopt the European joint currency within a time horizon of 10 years, Fiscal Council Chairman Ionut Dumitru said in an interview with AGERPRES.

Photo credit: (c) Cristian Nistor / AGERPRES FOTO

"We need an economic growth of 3 — 4 percent per year, so as to reach a satisfying level of real convergence in a reasonable time horizon. If we stagnate as regards the real convergence, if the economic growth keeps steady at around 2 percent and the Eurozone economic growth is the same, I believe the case is closed," Ionut Dumitru said.

He pointed out that Romania is obliged, given its EU membership, to adopt the euro, but there is no precise deadline in this respect. This decision belongs to each state and depends on the fulfillment of the convergence criteria.

"The toughest area for us is the real convergence, as we still have to make massive progress to come closer to the Euro zone standards. Our GDP per capita is around 45 percent of the EU average, quite far from what we want to achieve and from what it should be to meet the requests and exigencies of a joint currency. If we take a look at the experience of the countries that have adopted the euro in the previous waves, the poorest country was Latvia, which joined the Euro zone in 2014, with a GDP per capita at around 62 percent of the EU average," Dumitru also said.

At present, the Romanian authorities have no precise deadline as far as the Euro zone accession is concerned. National Bank of Romania Governor Mugur Isarescu has recently mentioned the 2018-2019 time horizon as a date for Romania's accession to the Eurozone, but he pointed out that the entire country has to be well prepared.

"Bucharest can join the Eurozone tomorrow, but the entire Romania has to be prepared," Isarescu stressed. AGERPRES

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