Lithuania’s PM sees 2010-2011 euro entry as realistic

December 4, 2007 at 7:15 pm 1 comment

Lithuanian Euro coinAs the BNS reported the Prime Minister Gediminas Kirkilas said on Tuesday that 2010-2011 remained a realistic target for euro adoption in Lithuania.

Kirkilas said European Commissioner for Economic and Monetary Affairs Joaquin Almunia had assured him during his recent visit to Brussels that Lithuania still had a chance of joining the euro zone in 2010-2011.

“The European Commission agrees with Lithuania’s projections that inflation will rise to 6.5 percent by the middle of next year and then start to fall. Inflation will be impacted by an increase in prices for energy resources, therefore inflation is controllable,” the premier said in an interview with Lithuanian Radio.

“I think we should not scare ourselves by getting into various, often exaggerated, discussions. Our inflation level is the lowest among the Baltic states,” he said.

Kirkilas noted that Lithuania was meeting all the Maastricht criteria for euro entry, except the inflation criterion. “If we implement our fiscal discipline plan in a consistent manner and keep to the (euro) convergence plan, I believe that Lithuania has chances of joining the eurozone in 2010-2011,” he said.

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Entry filed under: Baltic States, Economics, EU, Lithuania, Northern Europe, Politics.

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1 Comment Add your own

  • 1. lukas vitalijus  |  December 5, 2007 at 3:44 am

    The question of whether or not Lithuania (and for that matter other Baltic States, plus other major countries in the region such as Poland) will join euro zone is more associated and in fact determined by POLITICAL criteria, not pure economics. This proved true when Lithuania missed the opportunity to join euro 2007 while other candidate country Slovenia (which is seen one of the favorites among new members in Brussels). And then there are other factors such as GROUP DYNAMICS, REGIONAL Proximity to other strong economies using euro and finally STABILITY combined with the health of overall so-called ‘soft infrastructure’ (corruption levels, good governance, etc.) Lithuania is catching up but it still has lots of work to do in order to gain status of favorable nation as Slovenia or for that matter Estonia managed to do. And last but not least, it got to improve its IMAGE (no club will let the country which ‘manages’ to forge 9 million euro’s) but that goes without saying…

    Reply

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