Loading ...'Romania should not hurry to join the Eurozone before being ready to take this step. Before that we need a fiscal and budgetary reform, as well as structural reforms, besides being able to achieve the required levels of the specific indicators. For instance, Romania is failing to achieve the Government deficit level, the inflation standard, the interest rate standard, but it meets the average exchange rate indicator,' Executive Director of the Applied Economics Group (GEA) Liviu Voinea told in an exclusive statement.
'We would rather set a target but not turn it into a fetishism. The two-year stay with the ERM II exchange rate mechanism will not be curtailed, and it would not be good if it did, because that is the time needed to see what the balance exchange rate is at which the local currency will be irrevocably pegged against the euro.
If we get a wrong exchange rate, our competitiveness may be hurt in the process,' said Voinea. Moroever, Voinea added, there is also inflation generating by exchanging RON prices into EUR prices; a long time will adjust the inflation, while a shorter time will flame it up. When Romania enters the Eurozone it gives up its own monetary and forex policy. So, it will be better for Romania to enter there when its economy can do without these two levers, Voinea concluded.
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