Joining the eurozone in two steps: 2024 and 2026

By Jerom Bolt
Romania could enter the exchange rate system, a pre-chamber of the eurozone, in 2024, where it must remain for at least two years until the adoption of the single currency, Mugur Isărescu, Governor of the National Bank of Romania (BNR) announced on Wednesday.
Isarescu stressed that 2024 is a reasonable entry horizon in the exchange rate system.
“The reasonable horizon to enter the exchange rate system is 2024. From there, the road is just ahead, it takes two years or more,” the governor said.
Earlier, the Finance Minister had indicated 2024 as the date for joining the single currency, which implied entry into the exchange rate system by 2022 at the latest, News.ro writes.
“It is not as the governor wants, one or the other, is a political decision, but it is a decision of great responsibility,” Isarescu added.
In May 2018, the Government announced that it had approved by memorandum the convergence program 2018-2021, which continues its commitment to euro area and economic growth support policies, with a budget deficit of 3% of the product Gross Domestic Product (GDP), and involves the implementation of measures aimed at increasing the competitiveness of the Romanian economy and reducing the differences from the rest of the European Union (EU) states.
However, the government stressed that setting a tangible date for joining the eurozone means “carrying out in-depth analyzes, especially regarding real, structural and institutional convergence, and taking into account the sustainability of fulfilling the nominal convergence criteria.”
The document highlights that the preparation of Romania’s entry timetable in the supervision and adoption mechanism of the euro, as well as the necessary actions for the preparation of the economy and the society, fall within the competence of the National Commission to substantiate the National Plan for the adoption of the euro, activity in April.
The Commission is headed by two presidents – the Prime Minister and the President of the Romanian Academy – and by two vice-presidents – the NBR governor and the Deputy Prime Minister for Economic Affairs.
“In the medium term, the document forecasts that Romania’s economy will continue to perform, taking into account the positive impact of the measures envisaged in the Governance Program on the business environment and purchasing power, the economic and social progress recorded in 2017 and the first months of 2018, but also the favorable European and global context, “the press release said.
From the point of view of real convergence, as measured by the gaps compared to the European average (EU-28) per capita GDP, the document approved by the Government requires Romania to reach 70% of the European average in 2020 compared to only 57 , 1% in 2015 and 58% in 2016.
The convergence program details the general framework and economic policy objectives for the period 2018-2021, presenting the measures already implemented, but also measures that the Government envisages in the field of fiscal policy, focusing on predictability and improving the collection rate of taxes; taxes.