The efforts seem to have already paid off – the year 2013 marked a turnaround in Romania’s economic development: economic growth of 3.5% driven mostly by robust export and industrial output on the supply side; a small current account deficit; historically low inflation; while the fiscal deficit was kept well below 3%. And I have every reason to believe that Romania will see further growth in the years to come. And that, unlike in the pre-crisis period, this time sustainability will be the name of the game, as hopefully we all have learned our lessons from our previous mistakes. As they say, no one really learns but from his own mistakes…  BIS central bankers’ speeches  1  Talking about sustainable economic growth, one needs to put things into perspective in order to ascertain whether the economy is on the right track. This means that short-term policies must be harmonised with the long-term vision and goals. Euro adoption could serve as such a long-term goal. And Romania has chosen to use it as an anchor. Let me say a few words about this subject. In the post-crisis period, all non-euro area EU countries in Central and Eastern Europe with floating exchange rate regimes (Czech Republic, Hungary, Poland and Romania), as well as Bulgaria, shifted to a wait-and-see approach as regards euro adoption, even though, in some of them, Maastricht criteria were already fulfilled or within reach.
First and foremost, the project itself is still work in progress and it is always advisable to partake from the inside in the construction of a mechanism that we will eventually have to join anyway. Secondly, with the Banking Union in place, the domestic financial system will be affected regardless of whether Romania is a member or not, so it is better to have a say in the decision-making process that generates such effects, since the latter will impact us one way or another. Besides, Banking Union membership is expected to benefit participating countries through the removal of an incentive for deleveraging on the part of foreign banks, more effective supervision by improving access to information and eliminating the possibilities of jurisdictional arbitrage, as well as the creation of a more competitive market by reducing distortions and entry barriers. Given the share of foreign capital in Romania’s banking system, it makes even more sense to support the project. In light of the above, Romania aspires to be part of all three pillars of the Banking Union. It is our view that adhering to this European project will strengthen financial stability, further increase confidence in the national banking sector (through the harmonisation of supervisory practices and deposit guarantee schemes), as well as foster sustainable lending and economic growth (by reducing the fragmentation of the European financial markets). I shall stop here, thanking you for your attention. I wish you a fruitful outcome of the conference, and hope you enjoy your stay in Bucharest!