Instead of continuing to send warnings about public policies, the vast majority of which are ignored by a political class too little anchored in economic reality, the governor of the National Bank of Romania, Mugur Isărescu, should prioritize joining the euro, negotiating flexible conditions for joining, practically removing us from the influence of the iz fanariot policies from Bucharest.
The adoption of the euro primarily brings reduced inflation PHOTO Pixabay
The longest-serving head of a national bank in the EU has this obligation. Do not leave us prey to politicians convinced that only by increasing taxes, through the progressive tax and other fiscal artifices can Romania's financing problems be solved.
Isărescu has this obligation at least morally. To lobby for an accession to the euro under more flexible conditions.
The problem of the budget deficit will be solved faster than we expected. Exchange rate stability can be achieved and inflation will be overcome from 2027.
What remains for us to accomplish? The problem of interest rates, the budget deficit and the public debt. All these targets can be negotiated, if Isărescu wants it, if he comes with a concrete country project, with an impact study, with concrete proposals to modify the Maastricht Treaty.
Are we able to lobby for this country project? Do we want this? Bulgaria's neighbors have made the adoption of the single currency an absolute priority. And now they are starting to reap the rewards. Foreign investors no longer see in the neighboring country only an emerging market with cheap labor, but a safe territory, fully integrated into the financial mechanisms of Brussels and Frankfurt.
This status gives companies the guarantee that their assets will not be devalued by local currency shocks and that country risk is minimized.
Lobby package with Hungary
In essence, Romania can no longer afford the luxury of passively waiting for the indicators to be corrected through traditional, lasting methods. We need an aggressive diplomatic offensive at the European level.
I think we should join forces with Hungary, another major regional economy facing similar barriers, to build a strong lobby group in Brussels and at the headquarters of the European Central Bank.
If we are not able to hire a lobbying firm in this case as well, as in the case of the relationship with the US.
In a Europe threatened by fragmentation and external pressures, the rapid monetary integration of the Eastern Flank becomes a major theme of continental security, not just a mathematical calculation of deficit.
We must have the courage to “burn the steps” and propose an extremely ambitious but vital objective: the effective transition to the single currency in the next 2-3 years. This controlled forcing of the calendar would act as a lifeline for the entire economy.
What does joining the euro mean?
The adoption of the euro primarily brings a structurally reduced inflation and the elimination of the risk of devaluation of the leu. For ordinary people, for the business environment, the most tangible advantage will be access to loans with much lower interest rates, similar to those in Germany or France, eliminating the current burden of high financing costs in lei.
Moreover, the presence under the umbrella of the ECB will impose an iron rigor on Romania's fiscal policies, practically prohibiting budgetary waste and economic populism.
The euro zone is not only a club of rich countries, but represents the only mechanism capable of offering Romania total protection in the face of financial crises and guaranteeing a constant flow of foreign direct investments, essential for long-term development.
