A “yes” from Brussels will help boost support for euro in Latvia

A “yes” from Brussels will help boost support for euro in Latvia - Burkhard Balz

2013-07-04, 21:29

Published in Economy

font size decrease font size increase font size
Print
Email
Add new comment

Rate this item

(0 votes)

Latvia's plans to switch to the euro from 1 January 2014 were strongly backed by MEPs during a vote on Wednesday 3 July. Burkhard Balz, who is responsible for this topic in EP, told us that support from Brussels would help to boost public support in favour of the single currency in Latvia. The latest polls show support is now about 40% and increasing. The final decision will be made by the EU's finance ministers on 9 July.

How can the introduction of the euro help a small open economy that is easily affected by global and regional developments?

I am confident that the euro will stabilise the Latvian economy further. Latvia will be fully integrated into the eurozone and benefit from being able to conduct business in euros.

It has to be mentioned though that a lot of business is done in euros already and that investment and trade links with the EU have steadily increased since the country's accession to the EU in 2004. The integration into the eurozone is a logical step and will certainly be an advantage for Latvia's competitiveness, also on the global level.

How did the consolidation process affect ordinary people and their support for the euro?

The stringent austerity measures implemented in the last few years came no doubt at a price, which primarily affected citizens through wage cuts, tax increases and rising unemployment. However, I think Latvian citizens knew it was worth it as they re-elected the government who paved the way out of the crisis.

I have to admit that at this point the lack or insufficient support for the adoption of the euro among the Latvian public is my major concern. The support is still rather low. In discussions with representatives from civil society during my visit to Riga, it became more than clear, that citizens wish to be engaged more actively in a constructive and informative public debate.

A "yes" from Brussels would be a positive and encouraging signal for Latvia and its citizens and certainly help to raise public support for the adoption of the euro.

What do you Latvia will look like in the future?

It will remain of the utmost importance for Latvia to commit itself to stability-oriented policies and to stick to its positive developments of the last few years. Sustainability will be key.

I am confident that Latvia will be a credible partner in the eurozone, encouraging stable economic and financial policies for the EU as a whole and for the eurozone in particular.

REF. : 20130701STO14762

www.europarl.europa.eu

Add comment

JComments