Mugur Isărescu: Romania, the EU and the euro area Opening speech by Mr Mugur Isărescu, Governor of the National Bank of Romania, at the "The Future of the Euro Area and its Enlargement" Conference, Bucharest, 17 October 2017. * * * Professor Sapir, Ladies and gentlemen, The National Bank of Romania’s Board and I are honored to extend a warm welcome to all of our distinguished guests attending the conference this morning. Allow me to wholeheartedly welcome our speaker, Professor André Sapir. It has become quite a tradition here, at the National Bank of Romania to invite well-renowned lecturers to address the audience on important topics of the day. This morning, we are privileged to listen to Prof. Sapir’s lecture on The Future of the Euro Area and its Enlargement. Please, allow me to briefly introduce to you Prof. André Sapir. He is a well-known name among European economists. He is an active member and Senior Fellow of Bruegel Institute in Brussels. Prof. Sapir has a rich academic career and important contributions in the field and study of economics. I wish to express my appreciation for his diligent work dedicated to the strengthening of the conceptual underpinnings of the European Union and the Euro Area’s economic and financial systems. For those of you who are not familiar with Bruegel Institute in Brussels let me pinpoint a few facts. Bruegel was set up in 2005 and has emerged as an important independent and non-doctrinal European think tank focused on economics.

SMEs can enjoy lower financing costs offered by this scheme with a 2% reduction in financing rate. Sukuk issuers also benefit from the three year extension of the double tax deduction for additional expenditure incurred for sukuk issued under Ijarah and Wakalah principles. Other cost savings for sukuk issuers include reduction in professional fees relating to due diligence, drafting and preparation of prospectus; and various fees charged by Securities Commission Malaysia and Bursa Malaysia. Islamic finance is anchored on sustainable values beyond profit The unique propositions of Islamic finance are drawn from its underlying Shariah principles that have universal applications, which fundamentally advocate the prevention of harm or attainment of benefits. All Islamic finance transactions must reflect Islamic values which are ethical and fair. Any financial conduct or transaction relating to goods or services that are contrary to Islamic principles are prohibited, thus promoting fairness, equality and justice. As such, Islamic finance practitioners are duty-bound to observe the norms of high ethical conduct to uphold the values and the sanctity of Shariah. Businesses can therefore take assurance that their financial needs are well served, managed and protected. For the halal industry, players could benefit greatly from appropriately raised funding and protection, which ultimately nurture an end-to-end halal ecosystem. Beyond this, the Islamic financial system also promotes Value-based Intermediation (VBI). Through VBI, Islamic financial institutions are encouraged to adopt more structured frameworks to assess how they create value and impact, particularly in response to changing economic, social and environmental conditions.