Central bank governor: Not skeptical, just trying to stay realistic about joining euro

Romania is not skeptical about joining the euro, but we are trying to be realistic and to ensure a certain amount of time for this moment, governor of the National Bank of Romania (BNR) Mugur Isarescu told a specialist conference on Thursday. 

"With regard to the differences among the countries' strategies, some might find it amazing that Bulgaria considers joining the euro even faster than Romania, Hungary, Poland or the Czech Republic. It's true that these neighboring countries have much in common, yet there is also an element that differentiates them. Bulgaria has a Monetary Council and it is natural for Bulgaria to consider joining the eurozone. The adoption of this mechanism, more than two decades ago, means that more than half of the steps towards joining the euro have already been made. Having a Monetary Council in place means having a fixed exchange rate system. By contrast, Romania has a floating exchange rate and a direct inflation targeting regime, just like Poland, Hungary and the Czech Republic. This is why the approach is different. This does not mean that Romania, Hungary or Poland are skeptical about switching to the euro. At least in our case, we are not skeptical, we are just trying to be realistic. One needs a comprehensive approach, this means ensuring an adequate timeframe for this moment and successfully joining the euro," Isarescu said. 

According to the BNR governor, joining the euro by the new member states is a matter of "when," not of "if." 

Isarescu also mentioned that sustainable convergence is needed, and Romania must be aware that several key requirements must be fulfilled in order to truly benefit from joining the euro, and that it's not just nominal convergence that is key to the sustainability of the single currency's adoption, but also structural or institutional convergence. 

The National Bank of Romania organised on Thursday in cooperation with the European League for Economic Cooperation - Romania the conference 'The Danube Triangle' on 'Convergence towards euro enlargement'.