Romania maintains its goal of joining the euro zone in 2015 by joining the ERM II mechanism in 2013 or 2014, after which it must reduce the structural deficit to under 0.7 percent of GDP in 2014, according to the Convergence Program for 2012, adopted by the government.

This reduction illustrates Romania’s ability to meet the medium-term budgetary objective set by the Stability Pact from 2013. Over 2013-2015, the convergence program proposes a macro-economic forecast framework that puts GDP growth between 3.1 percent and 3.9 percent, about one point above potential, due to the contribution of investment and funds from Europe. This year, domestic demand is predicted to be the main engine of economic growth. Inflation is expected to reach about 3.5 percent at the end of the year.

On the medium term, Romania should gradually reduce its budget deficit to 2.3 percent of GDP in 2012, 1.5 percent of GDP in 2013, 1.2 percent in 2014 and 0.9 percent in 2015, with figures calculated according to ESA methodology. The convergence program aims to achieve improvements in investment policies, continue reduction policies, prevent arrears and improve corporate governance.

The Diplomat