ROMANIA'S REAL CONVERGENCE TO THE EUROPEAN UNION
   Dragoş Mihai Ungureanu , Permanent Representation of Romania to the European
                                      Union
          Ruxandra Dana Vilag, Romanian-American University Bucharest
          George Horia Ionescu, Romanian-American University Bucharest
             Florian Bogdan Stoian, “Lucian Blaga” University of Sibiu

ABSTRACT: In the process of European integration, switching in 1999 to the third stage
of Economic and Monetary Union, has intensified the need to coordinate economic and
sectoral policies of the Member States. The process of coordination is necessary to
harmonize national economic policy objectives in order to minimize the negative impact
of economic policy measures taken by some member countries to other member countries
and reduce the temptation for Member States to have behavior riders. Real Convergence
is an essential goal of Romanian integration into the European Union. Attenuation of the
development gaps maintained between Romania and the EU can not be achieved solely
through the use of market forces. Economic transformations occurring globally and
increased risk aversion contributed to a signifiant reduction of capital flows to Romania,
increased pressures upon exchange rate.

Key words: Real convergence, nominal convergence, integration, European Union

JEL codes: F36, F33, O52