approaching real convergence not as a race where the fastest track is also the right one, but rather as a complex process giving the steady runner ( a marathoner rather than a sprinter ) the opportunity to reap most of the potential benefits, while avoiding excessive risks. speaking about risks, it is worth noting that relatively sizeable current account and fiscal deficits may erode the very foundation of this edifice that is the national economy. it is therefore much wiser to adjust them in a gradual manner than leave market forces to cause a sudden correction. fiscal discipline, consistent economic policies and an ambitious, yet viable, calendar should make a successful euro adoption possible, so that the economy adequately withstand competitive pressures within the euro area. equally important is to reduce the still overly large disparities across romania ’ s development regions, as it takes the entire country to join the euro area, not only bucharest and ilfov county. economic growth is not enough, it should be accompanied by lasting economic development. before ending my speech, instead of my personal view about the future, let me quote a recent column in financial times by tony barber 2 relevant for the state of affairs in the region : “ nevertheless all is not well in the region. why? one reason lies in the model that western governments in the 1990s prescribed for the east ’ s transition to free - market democracy. as it shed its communist past, the east was told to embrace not just liberal democracy but globalisation, open borders and the lightly regulated financial capitalism that the west viewed as the touchstone of its own economic success. this model ’ s flaws were exposed in the 2008 financial crisis and the european refugee and migrant emergency of 2015 – 16. [ … ] eu membership, too, has brought more pluses than minuses. access to the single market, regional aid and, from ordinary people ’ s viewpoint, europe - wide freedom of movement are cherished gains. [ … ] this resentment has much to do with the western model grafted on to the east. in 1989, as during europe ’ s 1848 revolutions, the people wanted civic freedoms and, in many cases, liberation from foreign overlords and their first independent states of modern times. but after 1989 the adoption of the western model — complete with eu membership, global capitalism and a liberal political philosophy — created tensions between liberalism allied to internationalism and the assertion of a newly acquired national sovereignty. [ … ] now central and eastern europe is experiencing its own contest between populist

leonardo badea : on financial ( in ) stability and systemic risks in a world with high uncertainty and multiple disequilibria closing remarks by mr leonardo badea, deputy governor of the national bank of romania, at the15th edition of the seminar on financial stability issues " on financial ( in ) stability and systemic risks in a world with high uncertainty and multiple disequilibria ", sinaia, 4 october 2024. * * * distinguished guests, esteemed colleagues, ladies and gentlemen, first of all, allow me to express my sincere regrets for not attending the seminar in person, due to an overlap with the last meeting of the national bank of romania's board, in the current mandate. i am, however, pleased to have had the opportunity to join you virtually today, following the stimulating discussions that took place in sinaia. as we conclude the 15th edition of the seminar on financial stability, i wish to express my sincere appreciation to all of you for your active engagement and valuable contributions. over the past few days, there were explored a wide range of critical issues that shape the stability of the global financial system, from the main challenges faced by policymakers in the current geopolitical context, to the evolving risks of digital finance or the vulnerabilities in the real estate sector. financial stability today goes beyond managing traditional risks such as liquidity, credit or real estate booms ; it now requires an understanding of technological advancements, climate change, and geopolitical uncertainty. moreover, mounting fiscal imbalances and high levels of both public and private debt in many countries represent other elements to closely monitor. the first panel provided an excellent coverage of the key systemic risks we are currently facing, along with the challenges they pose to financial stability. with that in mind, the natural question arises regarding the appropriate measures to implement. in this context, the second panel took a deep dive into the topic by exploring the effectiveness of macroprudential policy. considering the vulnerabilities observed in housing markets across the globe, we gained valuable insights from the panel's examination of potential spillover effects from the real estate sector on financial stability. lastly, i found the dynamic discussions on emerging challenges particularly engaging, especially regarding the interaction between the rapid advancement of ai technologies and the stability of the financial sector. as emphasized in today's panel, artificial intelligence has the potential to fundamentally transform financial systems and is swiftly 1 / 3 bis - central bankers'speeches evolving into a