Wednesday, February 27, 2008

Official: Romania might miss adoption of euro in 2014

BUCHAREST, Feb. 26 (Xinhua) -- Romania might miss the adoption of the euro in 2014, if inflation remains at a high level, Mugur Isarescu, governor of Romania's National Bank, said Tuesday.

"I'm afraid the adoption of the euro in 2014 might be missed if inflation does not keep at sustainable levels," said Isarescu at a conference on "Romania, an attractive location for investments, or economic overheating?"

He said that Romania, during 2008-2009, should take tough measures to curb inflation.

"If we do not manage to bring it down, it means the anticipations have no grounds any longer, they will be set at a higher level and we will need another two-three years to take the inflation from 8 percent to 4 percent and then to 2 percent," he said.

He said the strength of the national leu currency last year had had an impact on inflation, with the its appreciation having been over-rated amid a high current account deficit.

The inflation rate stood at 0.9 percent this January, while the figure for Jan. 2008-Jan. 2007 climbed to 7.26 percent, up from 6.57 percent last December, according to figures published by the National Institute of Statistics Tuesday.

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