Latvia is still willing to join the eurozone on 1st January 2014, however, before joining, it must comply with the strict Maastricht criteria, namely;

 

  1. Inflation rate should be no more than 1.5 percentage points above the rate for the three EU countries with the lowest inflation over the previous year;
  2. Budget deficit must generally be below 3% of gross domestic product (GDP);
  3. National debt should not exceed 60% of GDP;
  4. Long terms rate should not be more than two percentage points above the rate in the three EU countries with the lowest inflation over the previous year;
  5. National currency's exchange rate should have stayed within +/-15% margins set within the Exchange Rate MechanismIIfluctuation for two years before joining the euro area.

 

According to the statistics based on the situation last June, Latvia is passing 2 out of the 5 criteria. Although, Latvia still has a long way to go, year after year, the statistics are getting closer to those requested by the EU.

 


Convergence criteria

Criteria in June 2012

Latvia's achievement in June 2012

Budget balance (% of GDP)

-3,0 -3,5

Government debt (% of GDP)

60,0 42,6

Average inflation over last 12 months (%)

3,0 3,5

Government securities long-term interest rate (%)

3,9 5,5

Currency exchange (%)

+/-15

0

 

19 December 2012 - (EUObserver) Latvia to apply for euro membership in February. Latvian Prime Minister Valdis Dombrovskis has told The Guardian his country will formally apply to join the euro in early 2013, with a view to joining in 2014. "We don't think it's a sinking ship. We still see more positives than negatives," he said, referring to the fiscal crisis.

05 March 2013 - Latvia has just applied to join the eurozone

 

Source

(C) Leta

(C) EUobserver

(C) Latvia Euro Changeover Website

Views: 1253

Add a Comment

You need to be a member of euroHOBBY to add comments!

Join euroHOBBY

Comment by euroHOBBY on December 19, 2012 at 13:14

(EUObserver) Latvia to apply for euro membership in February. Latvian Prime Minister Valdis Dombrovskis has told The Guardian his country will formally apply to join the euro in early 2013, with a view to joining in 2014. "We don't think it's a sinking ship. We still see more positives than negatives," he said, referring to the fiscal crisis.

 

Source

(C) EUobserver

Comment by euroHOBBY on August 22, 2012 at 10:55

Compliance with Maastricht criteria - Latvia's data in July 2012

Convergence criteria

Criteria in July 2012

Latvia's achievement in July 2012

Budget balance (% of GDP)

-3,0 -3,51

Government debt (% of GDP)

60,0 42,61

Average inflation over last 12 months (%)

3,0 3,32

Government securities long-term interest rate (%)

3,7 5,43

Currency exchange (%)

+/-15

04
Comment by euroHOBBY on July 30, 2012 at 9:51

the currency exchange criterion includes the 2 years in ERM

Comment by numizmatik on July 30, 2012 at 8:34

2 years in ERM aren't neccessary any more?


Find us on Facebook

© 2019   Created by Creator.   Powered by

Badges  |  Report an Issue  |  Privacy Policy  |  Terms of Service