Mugur Isărescu: Romania needs macroeconomic balances for growth and euro adoption

Romania can continue its economic growth and move closer to Western living standards only if it maintains macroeconomic stability, National Bank of Romania Governor Mugur Isărescu said on Tuesday at the launch of the volume “Financial Sustainability – From Deficits to Nominal Convergence.”

Isărescu stressed that sustainability is essential both for a solid economic path and for euro adoption. He warned that inflation and the budget deficit must be sustainable, not merely compliant with convergence criteria at a given point in time. The governor recounted the case of a country whose entry into the ERM II mechanism was postponed because these indicators were not considered sustainable.

Against the backdrop of economic and geopolitical uncertainties, macroeconomic policies should mitigate economic fluctuations, not amplify them. Isărescu called for avoiding pro-cyclical policies—namely, stimulating the economy during periods of growth—and for preserving resources for potential downturns.

The NBR governor also said that the fiscal and budgetary consolidation process is essential for Romania’s credibility. He advocated predictable, carefully calibrated and credible economic policies, warning that trust is hard to earn and can be quickly lost.