Analytics, Economics, EU – Baltic States, Forum, Latvia

Dombrovskis said he was confident that Latvia would be able to meet the criteria, stressing that that the opportunity of joining the eurozone should not be missed, as Dombrovskis' press secretary Martins Panke informed LETA.

After Latvia joins the euro area, Latvia's credit rating would increase, the cost of borrowing would reduce, there would be more money in the state budget, Latvia's competitiveness in drawing investments and the competitiveness of Latvia's exports would improve, and the concerns about a possible devaluation of the lat would be put an end to.

Latvia's residents trust the euro, which is proved by the fact that more than 80 percent of loans that residents take out in bank, and almost 45 percent of residents' deposits are in the euro currency, said Dombrovskis. During the crisis, most residents' savings were in euros, and companies that import or export goods perform around 60 percent of transactions in the euro currency.

Although Latvia's accession to the eurozone is justified and beneficial to the country, it is important to explain this to society. Residents' opinion of the euro has been affected by problems in several eurozone member states, which is why the Finance Ministry will implement a campaign to inform the people about the practical advantages of switching to the euro.

The euro is a monetary instrument, therefore it should be evaluated based on economic arguments, not emotional, added Dombrovskis.