“The 2019 target date for adopting the euro is still just a verbal target. We believe it should be at least in the shape of a strategy adopted by all the political parties, same as with the target date for the EU accession back in 2000,” Isarescu told participants in the 2014 Annual Scientific Conference of Romanian Academic Economists from Abroad.
“I am a firm supporter of two major projects for Romania, namely the euro adoption and joining the European Banking Union. The problem is not if, but when they will materialize,” he said.
The central bank’s chief said joining the European banking union would help slowing down the deleveraging process of foreign banks, which have reduced their exposure to the country by some 35% since the global economic and financial crisis first hit in late 2008.
“Joining the Single Supervisory Mechanism and the Banking Union is a natural choice for Romania, as eurozone banks hold more than 70% of the net assets and the capital in the local banking system,” Isarescu said.
He said around half of the post-crisis bank deleveraging in Romania took place in 2013.