The European Union enlargement strategy aims at integrating new members while harmonizing the foreign and domestic policy objectives of all Member States by the steady observation and implementation of several common principles. The full assumption of these principles by Romania lays the foundation for its candidacy to EU membership.

According to the objectives pursued in preparing Romania's accession to the European Union, the National Bank of Romania acted in line with Romania's constant efforts aiming to adapt - institutionally, structurally and operationally - the Romanian economy to the EU requirements. Thus, the NBR has constantly had in view to: (i) harmonize the Romanian banking legislation with the EU acquis and (ii) strengthen its institutional capacity, by developing and increasing the efficiency of the monetary policy instruments, increasing the efficiency of banking supervision, strengthening the legislative and regulatory framework and setting up a distinct department charged with the coordination of the preparation for accession, namely, the European Integration and International Relations Department¹ that took over the tasks of a former division. By setting up the new department, the NBR aimed to ensure a more effective and transparent coordination of the adoption of the acquis communautaire in the central bank's specific fields of activity as well as a better monitoring of the commitments assumed by the NBR through the Europe Agreement and the Position Papers for the three above mentioned chapters.

In order to meet the commitments assumed by Romania through the Europe Agreement and the official Position Papers, the NBR had to implement the measures agreed under the following negotiation chapters: Chapter 3 - Free Movement of Services, Chapter 4 - Free Movement of Capital and Chapter 11 - Economic and Monetary Union.

Within the process preparing Romania's accession to the EU, the NBR participated in the elaboration of the sections included in the programming, reporting and negotiation documents elaborated by Romania, according to its tasks and competences, as follows:

• the Pre-accession Economic Program (PEP), which represents the main instrument enabling the candidate countries to participate in the policy coordination procedures prior to accession;
• the Priority Action Plan for EU Accession;
• the Report on the Progress in Preparing the Accession to the European Union, that provides the basis on which the European Commission evaluates Romania's readiness for accession and presents Romania's progress towards accession;
• the documents submitted by Romania to the EU-Romania Association Committee, the EU - Romania Sub-committee II (Internal Market) and the EU-Romania Sub-committee IV (Economic and Monetary Issues, Capital Movement and Statistics). These fora examine regularly the state of play concerning the observance of the commitments assumed by Romania and represent, according to the Europe Agreement, constant contact points between the European Commission and the Romanian institutions involved in the preparation for accession;
• the Position Papers, the Complementary Position Papers and the Supplementary Information Documents (as the case may be) drawn up by Romania in view of accession negotiations on Chapter 3 - Free Movement of Services, Chapter 4 - Free Movement of Capital and Chapter 11 - Economic and Monetary Union.

NBR's preparation for the accession to the European System of Central Banks (ESCB) is a priority for its Board. Immediately after the Accession Treaty was signed, the NBR became actively involved (as an observer) in the activities of all ESCB structures and substructures as well as in the EU structures. Consequently, the cooperation between the ECB and the NBR acquired new proportions by a concrete and pragmatic preparation of the participation in the meetings of the General Council and of the ESCB committees, working groups and task forces.

In its capacity of coordinating unit, the European Integration and External Relations Department monitors and coordinates, in a centralized manner, the preparation for the participation in the works of the ESCB structures and substructures.

Note:
1. The NBR's Board decided to set up the new department in December 2001 and it became operational in February 2002.