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Ceturtdiena 22.03.2018 | Name days: Tamāra, Dziedra

Economists: government's euro activities lack ambitions

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It is still possible to introduce the euro in 2014. The government should stick to this aim, but it calls for clear and immediate action to meet the Maastricht criteria, Olga Ertuganova, Latvijas Krajbanka economist, told in a workshop organized by the Commercial Banks Association (CBA).

Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RU«Eurozone perspective seems quite foggy at the moment, so countries willing to join it should consider «joining the club» very thoroughly. Moreover, Poland and the Czech Republic have already announced they are not goint to rush with it,» she says.

The economist adds that despite all that, Latvia should stick to this aim.

Ertuganova points out the euro introduction is a good signal to investors, as evidenced by Estonia. Now when Estonia has joined the eurozone, the gap between its and Latvia’s credit ratings is as big as seven levels, while the difference with Lithuania hits five levels.

«To such a small country as Latvia the euro is like a court ruling that we are safe for investments. Otherwise, Latvia and its businesses will lose competitiveness with Estonians,» she says.

The economist believes the government should be more determined and act more aggressively and ambitiously.

Martins Bicevskis, CBA President, agrees, saying that Latvia should keep moving towards the euro in 2014 by carrying out sustainable fiscal consolidation and inflation limiting measures.

«Slashing price gains matter not only for the euro introduction but also because of their destroying impact on the poor purchasing power and domestic consumption,» he says.

Also other economists have told BNN that Latvia should stick to its aim to join the eurozone in 2014. Thus no careless behaviour from the part of the government is acceptable.

BNN points out the society is divided in terms of the euro in 2014. Given the approaching elections, politic parties try to make use of it in their pre-election campaigns.

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