"As Lithuania prepares to take the first big step towards closer euro-integration – by adopting the euro in 2015 – joint effort is particularly important in implementing the proposed single market financial sector reforms and ensure sustainable economic growth, as well as the convergence of the members of the Economic and Monetary Union," said Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania, this Friday at the conference Convergence Dynamics in the EU after the Economic Crisis, organised by the Bank of Lithuania.
According to him, the recent crisis brought to light the flaws of the financial system and now it is absolutely clear that a well-functioning single market needs an integrated financial regulation and management system. Even though the crisis was overcome by the broad arsenal of measures at the European Union and member states level, the real economic growth potential still hasn't been restored. Among the major challenges in strengthening the European Union's economic and financial basis is the creation of a banking union, which would cover independent supervision, efficient bank restructuring and a reliable deposit insurance scheme.
At the conference organised by the Bank of Lithuania it was also stressed that the success of the Economic and Monetary Union also depends in large part on the economic convergence level of its members. Therefore, differences in economic expansion, which do not foster such convergence, could be a sign of future tensions.
Other guests who shared their insights on the macroeconomic and financial challenges that the EU will face were Ardo Hansson, Governor of Eesti Pank, Ewald Nowotny, Governor of Oesterreichische Nationalbank, Alan Alhearne, Member of the Commission of the Central Bank of Ireland, Mejra Festic, Vice-governor of Banka Slovenije and representatives of the European Commission, International Monetary Fund and the academic community.
The participants of the conference were welcomed by Prime Minister Algirdas Butkevicius.
Prime Minister Algirdas Butkevicius read an opening greeting. According to the prime minister, Lithuania is following disciplined fiscal policies and is ready to adopt the euro in the beginning of 2015. Butkevicius noted that by becoming a member of the EU the country anticipated to replace litas with the euro.
According to Butkevicius, Lithuania proved last year that its economy was resilient to negative external factors and remained one of the fastest growing EU economies.
The prime minister stated that in the area of fiscal policy, in order to maintain market confidence in the development of the Lithuania's economy, the country will continue to create favourable conditions enhancing productivity, attract investments, create favourable business environment and ensure rational use of state budget funds for investment.
"It is expected that in the next four years improving external economy and business environment, beneficial borrowing conditions, better than other EU countries' economic prospects and projects initiated by the Government will encourage businessmen to expand production capacity and increase investment. After all, currently 75% of the total production capacity is utilised," Butkevicius said.
