In this vein, I must specify that, once Romania joined the European Union and the National Bank of Romania became a member of the European System of Central Banks, we are not only entitled, but also bound to present our viewpoint where we see that fundamental equilibria of the economy may be jeopardised by a particular development. Hence, I will refer to the NBR’s objective to ensure and maintain price stability and bring inflation rate down to a level compatible with its capacity as a member of the Eurosystem. Generally, a lower inflation rate is associated with a slower economic growth and even with recession. However, this phenomenon occurs only when there is a contradiction in the economic policy mix and when subdued inflation is not the primary objective of other policies, particularly fiscal and income policies. When the policy mix is balanced, inflation rate may be curbed while maintaining a sustained growth pace. Behind this development stand mainly foreign direct investment inflows which enhance the productive capacity of the economy and ensure the sustainable financing of a relatively high external deficit. In Romania’s case, the experts working with the central bank as well as the independent analysts estimated that the national economy may further rise at a fast clip amid alleviating inflationary pressures, even in the context of a current account deficit of 8-10% of GDP. Nevertheless, in order for capital inflows to continue, Romania’s economy must stay attractive.
Christian Noyer: Views on the Capital Markets Union project Speech by Mr Christian Noyer, Governor of the Bank of France and Chairman of the Board of Directors of the Bank for International Settlements, at the Paris Europlace International Financial Forum, Paris, 9 July 2015. *  *  *  Ladies and Gentlemen, It is my great pleasure to be here today at the Paris Europlace International Forum and I am particularly thrilled to exchange views on the Capital Markets Union project with one of its major architects, Olivier Guersent. This project indeed echoes many concerns tackled at the Central bank level, in particular how to achieve a better balance in the funding structure of the economy, and improve access to funding for businesses, notably SMEs and infrastructures, while ensuring financial stability. Although this initiative was announced only a year ago, it has soon become topical with the public consultation launched in February by the European Commission. The Banque de France was committed to answering this public consultation, which constitutes a milestone in the construction of a Capital Markets Union. Let me briefly share with you our vision. I welcome and support the CMU initiative as a promising avenue for growth. However, I believe that three major pre-requisites have to be met in order to make it a successful endeavor: (i) a clearly defined framework focused on a limited set of operational deliverables, (ii) the right articulation between market-based financing and bank financing, (iii) the necessity to ensure financial stability in the long run.