ROMANIA: CLIMBING THE LADDER FOR A BETTER FUTURE. WHEN WILL IT REACH EU AND EURO AREA?

In this paper we assess the evolution of Romania’s economic convergence with the European Union (EU) and Euro area, during the period 2000-2010. In order to determine the number of years required to reach the EU and Euro area average, we employ an economic convergence index, made up of real and structural convergence indexes. The analysis shows that Romania has been climbing the ladder in the process of catching-up with the EU and the Euro area until 2008 when, because of the international crisis, the economic convergence index started decreasing. We report that Romania will reach the EU average in April 2056 and the Euro area average in September 2062.As revealed by the analysis, it will take decadesto attain the European levels of economic convergence, this being the most important challenge for Romania on the long term.