Romania's political class should assume target to join the Eurozone in 2014, governor says

Romanian politicians should start taking responsibility over the country's target to join the Eurozone in 2014 in order to meet the deadline and take into consideration that a nominal convergence is not sustainable without a real one, central bank governor, Mugur Isarescu said.

Isarescu explained that assuming the target to adopt the sole European currency does not imply a written pledge, instead the government should establish some adequate objectives and policies.

President Traian Basescu last week said that Romania must assume explicitly the target to adopt euro in 2014. However, the target is realist only in the event authorities manage in a responsible manner the public spendings and introduce coherent planning and budget mechanisms, Basescu warned.

The nominal convergence to the Eurozone regards strictly the criteria established at Maastricht and Romania must comply with them. The criteria are about the inflation level, long term interest rates, variation of the exchange rate, the percentage of budget deficit and government debt in the gross domestic product (GDP).

The real convergence refers to the GDP per capita and population's purchasing power.

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