Nazare: Romania wants the euro by 2035, but must exit excessive deficit by 2030

Romania's interim Finance Minister, Alexandru Nazare, explained on Tuesday, at the launch of the volume "Financial Sustainability – from Deficits to Nominal Convergence", held at the National Bank of Romania, what conditions must be met for the country to adopt the euro.

According to Nazare, if Romania wishes to join the eurozone by 2035, the country must exit the excessive deficit procedure by 2030, as the preparation process for adopting the European currency takes several additional years thereafter.

The Minister stressed that certain "red lines" should be established in economic policy and upheld regardless of changes in the political cycle.

"Consolidation is not being imposed on us; it is not being demanded by the Commission, nor by ratings agencies, nor by any other external factors. It is about our own ambition to have a stronger economy, to play a role in this economic region we have been talking about for years. But we must also act on it. And that cannot come from outside. It always comes from within. And for this, we need more courage and more consensus, a broader understanding that certain elements of economic policy do not, and should not, fall within the realm of extreme political conflict. That we need certain red lines to hold, regardless of what happens within the political cycle," said Alexandru Nazare, as quoted by News.ro.

The official asked rhetorically how much longer Romania wants to remain subject to the excessive deficit procedure: "These things are very important if we are to make the next leap forward, and we are at a very significant crossroads for our consolidation. How long do we want to stay in the excessive deficit procedure? We will probably be in it for 10 years. How long do we want to stay? 15 years? Have we not had enough – how much have we been penalised for remaining in this procedure? With what credibility do investors – we want investment, but with what credibility do investors look at Romania, which persists in this procedure?"

Regarding the timeline for accession, the Minister stated: "We want to join the euro within the next decade – by 2035. In order to join the euro, we must exit the excessive deficit procedure by 2030 and will, of course, need several years to prepare for eurozone accession."

Nazare also explained why he considers euro adoption a more valuable objective than fiscal consolidation alone: "Why is euro accession a far better national target, a far more important anchor than consolidation in itself? Because it also drives economic competitiveness. It forces us to look at how we strengthen competitiveness, and not merely at how we achieve consolidation, which is a necessary but not sufficient condition for economic growth."