Romania Must Commit To 2014 Euro Adoption – President

In a news conference on the application of the Lisbon strategy in Romania, also attended by European Commissioner Leonard Orban, finance minister Varujan Vosganian and foreign affairs minister Lazar Comanescu, Basescu said the enforcement of the Lisbon strategy is a very important issue for the country’s future, but fairly unknown to some politicians and most citizens.

Basescu said Romanians need to be told that the Lisbon strategy targets economic growth, productivity and competitive wages. The president added the strategy also implies more competent and honest politicians, secure pensions and assistance to the needy.

Basescu said Romania’s most important goal is to achieve improved absorption of European funds.

“Romania’s next major target is euro adoption, which we need to achieve in 2014. But this is a realistic goal only if we show responsibility in public spending and if we introduce coherent multiannual budget planning schemes,” Basescu said.

Earlier this year, Romania’s central bank governor Mugur Isarescu expressed concern that Romania might not meet its euro-zone entry timetable, unless the country’s soaring inflation rate does not go down in the next few years.

Romania’s consumer price index rose in April, but at a slower pace of 0.52% on the month, on lower telecommunications prices, while consumer prices rose 8.62% on the year, almost the highest level since January 2006, the National Statistics Institute said in a statement.

The monthly inflation rate slowed from March and February, when prices rose 0.67% and 0.7% on the month, respectively. In March, the country’s annual inflation rate stood at 8.63%, which was the highest level since January 2006 when the rate was 8.89%.

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.