Romanian Ctrl Bkr Urges Politicians To Pledge For 2014 Euro Adoption

“I’m glad steps have been taken in this direction. I welcome President Traian Basescu’s efforts,” Isarescu said during a financial seminar.

Romania’s President Basescu said Friday Romania needs to commit to adopt the single European currency in 2014, but added this timetable is realistic only with disciplined public spending and coherent multiannual budget planning schemes.

Isarescu said special laws aren’t required to smooth the euro adoption, but warned the country’s future governments must implement appropriate policies over the next seven years.

In February, the central bank governor warned Romania might not meet its euro-zone entry timetable if the country’s soaring inflation rate doesn’t diminish in the next few years.
Romania’s annual inflation rate accelerated to 8.62% in April, almost its highest level since January 2006.

Romania’s central bank has set an inflation target of 2.8%-4.8% for 2008, but expects it to exceed the target range, reaching 6% by year-end due to persistent inflationary shocks from last year.