According to Fund's experts, membership of the euro area will ensure access to European Central Bank funds. This will reduce the risk rating of the country and will likely make borrowing cheaper. Furthermore, membership in the euro area should help the country to attract more foreign investment and open up more opportunities for local companies to join international business chains, provided the parties observe a reasonable economic policy. The IMF forecasts that the country's GDP will increase by 3.5% this year and after 2014 should gear up to 3.75%, provided sustainable investment growth is maintained, the country continues its reforms and maintains fiscal discipline.
Jeff Nelson, vice president of U.S. company Strategic Staffing Solutions, which has a staff recruitment branch in Vilnius, says that adoption of the euro in 2015 in Lithuania is a very important structural step. The euro allows international investors to save as currency exchange tax and the national currency risk are eliminated and also because common European standards are implemented in the country.
On the one hand, he does not believe that the introduction of the common European currency will somehow magically affect the country's appeal.
"I don't think investors are lining up at the Latvian border because of the introduction of the euro (the country adopted the euro in 2014 – VZ note)", Mr Nelson said. Strategic Staffing Solutions has helped recruit 2,000 specialists for international companies such as Barclays, Western Union and Call Credit in Lithuania.
According to Mr Nelson, the country's appeal is largely driven by the supply of specialists, appropriate investment infrastructure and a favourable and stable business environment.
Invest Lithuania, which is in charge of bringing FDI to Lithuania, indicates in its report that in 2013, 38 foreign companies invested in Lithuania. Once these projects are implemented a further 3,500 new jobs will be created. In 2013, according to the number of jobs per million population created, Lithuania occupies third place in Central and Eastern Europe after Slovakia and the Czech Republic.
