THE NECESSITY OF CONVERGING ROMANIA TO AN EFFICIENT ECONOMIC MODEL
THE NECESSITY OF CONVERGING ROMANIA TO AN EFFICIENT ECONOMIC MODEL

Summary/Abstract: Romania faces three main challenges over the medium - and long-term to assure sustainable economic growth: First, policies must be put in place to assure the resolution of the macroeconomic imbalances generated in the run-up to the crisis. Second, as with other new member states of the EU, Romania has the medium-term objective of accession to the euro area which requires nominal convergence to the Maastricht criteria. Third, nominal convergence should be coupled with real convergence - that is to say sustainable growth to bring Romanian living standards more into line with EU averages. For both nominal and real convergence, Romania must improve the flexibility of the economy and increase its potential growth rate through structural reforms in labor, product, and investment markets, and increase investment - particularly in infrastructure.

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