Latvia’s euro positive for Lithuania

VILNIUS - Now that the euro has been introduced in Latvia, the country may become a more attractive place for investment compared to Lithuania, reports ELTA. However, Lithuania could counter-balance this apparent advantage of Latvia if Lithuania would also move closer to adopting the euro, says Lithuanian Minister of Finance Rimantas Sadzius.
The minister stressed that Latvia was one of the key economic partners of the country; therefore, Lithuania should experience positive results related to the achievements of its neighbor.

“An increase in Latvia’s consumption, a rise in salaries, could improve the economic situation of our companies that export to Latvia,” said Sadzius on Dec. 30.
“A negative factor for Lithuania could be a withdrawal of investments from Lithuania, yet we could fight this if we are determined to adopt the euro from Jan. 1 in 2015,” said the minister.
However, the minister considered that Lithuania was only one step from the euro; therefore, the country should avoid possible negative consequences.

“At present, Lithuania already meets the Maastricht criteria; the only number that remains unknown is the general government deficit for 2013. (..) I have good reason to believe that we will not exceed 3 percent and, in April-May, we should meet all Maastricht criteria,” said Sadzius.