Alexandru Nazare calls for Romania to exit the excessive deficit procedure by 2030 to join the euro area in 2035

Acting Finance Minister Alexandru Nazare said Tuesday at the National Bank of Romania that Romania must exit the excessive deficit procedure by 2030 if it wants to adopt the euro in 2035. He made the statement at the launch of the volume “Fiscal Sustainability – From Deficits to Nominal Convergence.”

Nazare argued that Romania needs long-term economic objectives and “red lines” that must be respected regardless of political changes. The minister criticized the country’s prolonged inclusion in the excessive deficit procedure and questioned the credibility Romania enjoys in the eyes of investors.

According to the minister, fiscal consolidation should not be viewed solely as an obligation imposed by the European Commission, rating agencies or other external factors, but as a domestic ambition for a stronger economy and a more important regional role.

Nazare explained that joining the euro area could represent a more effective national target than fiscal consolidation itself, as it would also boost the economy’s competitiveness. Exiting the excessive deficit procedure would be a necessary step, followed by several years of preparation for adopting the European currency.