Romania is still aiming to accede to the Eurozone in 2014, provided that inflation is cut and the current-account deficit narrowed, Governor of the National Bank of Romania (BNR) Mugur Isarescu told AFP news agency in a recent interview.
“Romania switching over to the single European currency in 2014 is still possible and the important things we have to do to this end is to cut inflation at the same time with narrowing the currentaccount deficit,” says Isarescu. In order to be allowed in the Eurozone, any aspiring member has to observe 5 convergence criteria, including among the most important keeping inflation under check and following strict discipline in public spending.
According to Isarescu, BNR might downwardly adjust the inflation projections this year after in August it upwardly adjusted them from 6% to 6.6%. July 2008 inflation reached a record 9.04% year on year. “There could be a pleasant surprise in stock for us at the close of the year in the form of inflation going down to 6%,” said Isarescu, explaining that the 6.6% estimate was made when the crude barrel was worth about $140.
The 1992 Maastricth Treaty provides that countries seeking to switch over to the single European currency have to meet some criteria, including membership of the ERM-2 European exchange rate mechanism. Romania said it wants to switch over to the euro in 2012-2014, and it may join ERM 2 somewhere between 2010 and 2012.