mugur isarescu : convergence towards euro enlargement opening speech by mr mugur isarescu, governor of the national bank of romania, at the european league for economic cooperation ’ s ( elec ) monetary conference, national bank of romania, bucharest, 4 june 2019. * * * as prepared for delivery your excellency baron snoy, dear members of elec, ladies and gentlemen, it is a pleasure for me to open this elec conference, which is the 9th taking place in romania and hosted by the national bank. it all started in 2011 with “ renewable energy and transport infrastructure in the black sea region ”. one year later we talked about “ eastern europe and the emu : finding the optimal path for introducing the euro ”. in 2013, there was the 3rd edition of the danube financing dialogue. the following year the dialogue focused on “ agriculture and environmental protection in central and eastern europe and their contribution to growth and employment ”. in 2016, we discussed “ how the eu can generate a virtuous circle in the black sea region – the case of food and energy security ” and in 2017 we debated on “ the challenges for eastern europe in the present turmoil in the eu and emu – persevering in the reforms and investing for the future ”. the topic of the last year, “ convergence towards euro enlargement ”, is approached again today, which is more than welcome, given the importance attached to this issue. the debate on convergence and euro adoption is broad - based and complex. the topic has been addressed in yesterday ’ s dinner speech by academician daniel daianu. you will discuss it extensively today in two panels, moderated by wim boonstra and servaas deroose. i am looking forward to listening to your views on the matter. however, i would briefly refer to three ideas. first of all, the nbr ’ s approach to euro adoption is a balanced one. on the one hand, we are fully aware that a higher degree of real convergence is needed – at least 70 – 75 percent of the eurozone average in terms of gdp per capita at ppp. otherwise, we would be insufficiently developed and, therefore, vulnerable to asymmetric shocks and unable to synchronise our business cycle with that of other euro area economies. on the other hand, however, a high enough level does not mean that we are so ambitious as to aim for a convergence level of 90 % of

tradition fostering public policy progress and development related to the monetary policy and the banking sector in romania, in partnership with the academia, shaping a solid foundation. 1 / 2 bis - central bankers'speeches today, as it was back in 2014, we convey encouragements to approach the specific economic issues of the romanian economy and society in your researches, to take stance in public debates on topics of high economic relevance, to include viewpoints from the local academic environment, as well as from the institutional policy makers, to have a holistic view and a wide angle on key aspects for economics and society overall. practical experience and economic expertise are gained only via a strenuous work, diligence and acumen on the relevance of research for public policy decision making. national bank of romania has always supported the endeavours for quality research as a credible source of economic policy advice. our economists have always contributed with valued results of their research, focused mainly on aspects that are particular to the romanian economy. the program of the conference is paramount to central banking. the papers on inflation drivers, on econometric modelling, on foreign exchange rates, on corporate finance and investments, on fiscal rules, on the economics of the green transition carbon neutral footprint, on central bank independence and implications for the fiscal - monetary interplay, as well as on new digital assets, among other topics on the agenda, open wide avenues for research. the conference is also a forum of exchanging ideas. the social networking and the side events will give you the opportunity to explore romania more closely, to discover, rediscover and connect with the romanian society. on this note, allow me to conclude by saying to our romanian fellows welcome home and to wish every future success for the ermas conference on the occasion of this anniversary and to you all, fruitful debates and a memorable time in romania! 2 / 2 bis - central bankers'speeches