The prime minister of Latvia wants the country to join the euro on January 1, 2014, despite the current euro crisis. If this happens, Latvia will become the euro zone's 18th member. The country should get in easily, as they fit all of the criteria and have a robust economy.Much of its debt is already in euros and its currency has been pegged to the euro for ten years now, so the change will not be a drastic one. Despite their recent growth, Latvia is currently the third-poorest member of the European Union. Another concern is that currently, about half of the deposits in Latvian banks come from outside of the country (mostly from countries of the former Soviet Union). The main problem, however, is that recent polls show only one third of the population in favor of the switch because of fears of inflation. These fears stemmed from the previous switch from the rouble to the lat during the collapse of the Soviet Union. Despite concerns of citizens, economists seem to think that this change will greatly benefit the country.
http://www.economist.com/news/europe/21576416-latvia-looks-likely-become-euro-zones-18th-member-next-january-baltic-ambition
No comments:
Post a Comment