Romania is sticking to plans to adopt the euro in 2014 if the government is able to curb inflation and reduce its current account deficit, the head of the central bank said today.
'Adoption of the euro in 2014 is still possible,' Mugur Isarescu said. But he added that it was 'important to make progress toward reducing inflation along with a reduction in the current account deficit.'
To join the euro zone, a candidate country must meet five convergence conditions, among them a controlled inflation rate and strict public spending discipline.
Isarescu said his August inflation projection of 6-6.6% this year could soon be revised downward. Annual inflation in Romania hit a record 9.04% in July.