He believes that the convergence process can continue, but with a big switch in emphasis, from inflation and interest rates to the matter of public deficit.
‘The most important problem that has to be tackled is the unsustainable structure of Government spending,’ say Isarescu.
The governor also says that Romania’s state is rather comparable with Hungary’s, which recorded excessive deficits in the past years.
Romania should switch over to the euro in 2014 and one of the main conditions is a Government deficit of under 3 percent of the Gross Domestic Product (GDP).
The Romanian Government is expecting a 2009 deficit of 7.3 percent of the GDP.