Implications of change management in public administration

Finances - Accounting
Single currency - the euro - eliminates these disadvantages and both benefits
the consumers and enterprises.
• The costs of foreign exchange operations at the border, so called transaction
costs, disappeared in the euro area. This reduces travel costs, whether for
business, study or tourism. Previously, a person that would have DM 1000 in
his pocket and this person is traveling in 15 countries , changing money in each
of them has less than 500 marks when returning home - without having bought
anything. Today, someone who travels with 1000 euros would return home
with the same amount in his pocket.
• Euro helps single market‟s price transparency. Consumers and enterprises can
easily compare prices for goods and services all over EU. This results in
increased competition among suppliers and maintains pressures for reducing
prices in the euro area. This transparency is favored by low and stable inflation,
since prices changes may be easily identified.
• Transaction costs can be very important - before Euro Adoption they were
estimated at 0.3 to 0.4% of EU gross domestic product, 20-25 billion.
Companies suffered most of these costs, to help the movements of goods,
persons and capital in the EU. With the disappearance of transaction costs in
the euro area, these funds are available for encouraged productive investments.
In addition, elimination of transaction costs in the domestic market makes the
euro more attractive to foreign investors.
2. Objectives
This paper will focus on changes in all aspects: formal logistics, functional of
economic system.
2.1. Convergence Methods
The euro is "fire proof" of the Romanian economy. The process of the
transition to the euro is a key objective of romanian society.
The changeover will be a complex phenomenon that depends not only on
macroeconomic indicators, but also on the social reaction, the environment office,
consumers unions, the general population, will be able and willing to adjust to the
rigors of European currency.
The literature speaks of nominal convergence and real convergence. There is an
institutional convergence, but Romania has managed, with few exceptions, to
harmonize with European legislation and institutions.
Nominal convergence criteria defined by the Treaty of Maastricht regards the
countries that will be part of the "club" of the euro .Those countries must meet the
rigors imposed so that their arrival in the “club" won‟t destabilize those that are already
present.
A high inflation in either country would only make them to order and the others
to import inflation and bring highest interest rates in the rest of the countries in the
process of monetary union.
Higher rates of a State may be tempting to capital movements. A higher budget
deficit or public debt is signs of an economy with high issues and problems.
This type of convergence criteria aimed at uniformity, cut differences to bring
economies to a common denominator in terms of macroeconomic indicators, aiming to
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