The integration in the Organisation for Economic Co-operation and Development (OECD) offers Romania a reference framework for structural measures which can bring an additional increase of approximately 0.8% - 1% of the GDP, First Deputy Governor of the National Bank of Romania (BNR) Leonardo Badea believes.

'The OECD integration offers Romania a robust reference framework for structural measures which can bring an additional increase in potential growth of approximately 0.8% - 1% of GDP, but this depends on the institutional capacity to internationalize these standards and maintain a predictable macroeconomic environment, capable of turning investors' confidence into productive long-term capital,' Badea explained in an analysis sent to AGERPRES on Wednesday.

He underscored that Romania's accession to the OECD, forecast for this year, should not be interpreted only as a diplomatic success, but as an institutional anchor which can optimize the production function of the national economy.

'For the economic decision-makers, this process represents a mechanism of structural convergence, operating through clearly defined transmission channels, the effectiveness of which depends on avoiding 'institutionalism for show',' the BNR official added.

According to him, in respect to the macro-financial dynamics and the reduction of the risk premium, the main impact vector is the compression of the risk premium.

'Membership acts as a robust credibility signal, reducing spreads on eurobond issues and optimising public debt servicing. The improvement in the country rating is directly correlated with alignment to the codes on the liberalisation of capital movements and corporate governance instruments, which reduce the volatility of portfolio flows and facilitate the transition from investments based on labour cost arbitrage to high-technology capital flows, boosting total factor productivity (TFP),' Leonardo Badea said.

He underscored that, secondly, it is about the reconfiguration of foreign direct investment (FDI) flows, with OECD membership removing barriers for major institutional investors, who channel capital towards markets that comply with rigorous transparency standards.

Moreover, beyond the volume of capital, a qualitative shift in investments towards high value-added sectors can be observed, boosting labour productivity.

'In countries such as Poland or the Czech Republic, alignment with the OECD standards has acted as a catalyst for integration into complex global value chains, essential to avoid the 'middle income trap'. By adopting best practices in public procurement and governance, the aim is to eliminate market distortions and optimise resource allocation. For a better understanding, it must be stressed that these benefits do not automatically derive from the act of accession, but are endogenous to the quality of the public policies promoted. The positive dynamic is conditional on maintaining the sustainability of public finances, in order to capitalise on lower interest rates. There is a risk of 'reforms for show', where legislative changes are not followed by a change in the functioning of the administration, and the real implementation of corporate governance standards in state-owned companies and the digitalisation of the administration are efforts that must continue after the festive moment of joining the organisation,' Badea also conveyed.

He further underlined that accession to the OECD is not merely a process that ends once acceptance is granted, but one that will continue to manifest itself just as strongly through the changes it induces and that accession will not only change laws, but will also change institutional mindsets.

'And, last but not least, securing for Romania the status of member following the completion of the process (which we hope will happen as soon as possible) will help consolidate the position in international discussions and support the broader objective of convergence with advanced economies,' the First Deputy Governor of the BNR pointed out. AGERPRES (RO - writing by: Nicoleta Gherasi; EN - writing by: Rodica State)