Gov't: Until euro adoption, intense period in reforms needed

The members of the National Committee for substantiating the National Euro Adoption Plan stated on Tuesday that the period before the adoption of the euro will have to be "intense in reforms, development and modernization to reach the real convergence thresholds", according to a Government press release, issued for AGERPRES. 

The new meeting of the said National Committee took place on Tuesday at gov't's seat Victoria Palace, with the participation of Romanian Academy's President Ioan-Aurel Pop and the Governor of the National Bank of Romania, Mugur Isarescu. 

The Government informs that at the meeting, Professor Aura Socol PhD presented the Substantiation Report, a document structured on two levels and including seven chapters. The report analyzes in detail how the Eurozone works, how can Romania's entry into the Eurozone influence it and the degree of preparation of the Romanian economy for the implementation of this objective. 

"As to the degree of preparation of the Romanian economy for joining the Eurozone, the results of the research show that Romania has made much progress from the perspective of convergence," the press release said. 

At the same time, Aura Socol presented three scenarios showing the period when Romania could reach a critical mass of real and structural convergence of 70pct, 75pct and 80pct respectively, depending on two annual average growth rates: a rate of a 4pct increase, based on the average real GDP growth rates in the period 2000-2017, and a more optimistic rate of 5pct based on the assumption that Romania will improve the contribution of production factors to the potential growth and will implement structural reforms favorable to economic growth. 

"In the case of a target of 70pct of the Eurozone 19 average, Romania may reach this level in 6 years if it has an average growth rate of 4pct per year or 4 years with a 5pct growth rate. In the scenario in which Romania intends to reach 75pct of the average Eurozone 19 (the most appropriate level for Romania's economy, as shown in the Report), this can be achieved in 9 years (if the average rate of historical increase of 4pct per year is kept), or in 6 years in the context of an increase with an average rate of 5pct per year," reads the press release.