The rationale for this decision is that such an objective – feasible, yet ambitious – could act as a catalyst for coherent policy action. At this point in time, Romania is fulfilling three out of the four Maastricht criteria, namely the sustainability of the fiscal position, convergence of long-term interest rates and exchange rate stability (although we are not technically in ERM II). Meeting the price stability criterion is  2  BIS central bankers’ speeches  probably just a matter of months, until the recent low inflation numbers feed into the 12-month average rate used as a reference. But, we are fully aware that we still have a long and difficult road ahead, as several years of relentless efforts are needed in order to ensure a lasting fulfilment of the Maastricht criteria, to make further progress in the catching-up process in the area of real convergence, as well as to push forward the structural reforms required for enhancing the resilience and flexibility of the domestic economy. Closely linked to the euro adoption approach is the decision on participating in the Banking Union, which is supposed to break the negative feedback loop between sovereigns and banks. Euro adoption automatically implies Banking Union membership and therefore, since the changeover target date has already been set, joining the Banking Union is merely a matter of timing: should it occur on the euro adoption date or as soon as possible? In my opinion, there are strong arguments in favour of rapidly joining the Banking Union.

Five major trends are having a significant bearing on the future development of the global sukuk market. Firstly, the bond market is now becoming key to meeting the funding requirements for both the public and private sectors in emerging market economies. This is particularly the case for the Middle East and Asia, which are among the fastest growing regions in the global economy. This includes financial needs of the private sector following the privatisation and implementation of infrastructure projects. The development of the Islamic Bond Market, the Sukuk Market will provide opportunities for the corporate sector, the government agencies, multinational corporations and multinational development institutions to raise funds through the issuance of sukuk to meet their financing requirements. The sukuk market also serves as an important platform, complementing the conventional bond market, in enhancing the effectiveness and efficiency for the mobilisation and allocation of funds within the domestic financial system, as well as in the international financial system. Secondly, while there has been growing interest in the issuance of sukuks by corporations, sovereigns and multinational corporations, the demand for sukuks significantly exceeds the supply. Today, the global sukuk market, denominated in international currencies, is estimated to exceed USD50 billion. Although the size of the market is modest by global standards, the sukuk market is experiencing remarkable growth, increasing at an average rate of growth of forty per cent per annum. The significant demand for sukuks have been spurred by the high levels of surplus savings and reserves in Asia and in the Middle East.