Analytics, EU – Baltic States, Financial Services, Latvia, Legislation

The eurozone is sustainable and Latvia is making the right move by joining it, says Goldin, admitting that the economic crisis has forced "painful adaptations" upon some countries within the framework of the eurozone.

The eurozone will hold steady and there will be no drop-outs, because it is within everyone's interests, also within the interests of Germany and Northern Europe, since the transition to a new German mark would deliver a heavy blow to Germany's economy, explains Goldin.

Introduction of the euro in Latvia on January 1, 2014 is a logical step toward closer integration of Latvia in the European Union, which will also consolidate the country's macroeconomic policy and competitiveness, says a statement passed by the Baltic Assembly's (BA) Presidium yesterday.

The statement says the BA has a high opinion of Latvia's progress toward meeting the Maastricht criteria, Saeima Press Service informed LETA.

At the same time, the statement emphasizes that Latvia's switch to the euro will contribute to the entire Baltic region's economic growth, raise investment and export volumes, reduce currency exchange costs, and guarantee greater resilience to economic shocks. The euro area's official invitation to Latvia will confirm eurozone countries' readiness and wish to admit to the euro area those European Union member states that meet the Maastricht criteria.

Adoption of the euro in Estonia has been successful, as attested by Estonian society's increasing support for the European single currency; it has also achieved greater stability and support for the country's national economy, fostered the creation of new jobs, had a favorable effect on the country's exports and security, emphasizes the BA Presidium.

The BA is an inter-parliamentary cooperation organization of Latvia, Estonia and Lithuania established on November 8, 1991. The BA consists of national delegations – twelve to twenty members from each country’s parliament. The BA is a coordinating and consultative organization. It has the right to express its opinion in the form of resolutions, decisions, declarations and recommendations to the national parliaments and governments of the Baltic States and to the Baltic Council of Ministers. It also has the right to request information from these entities on how cross-border issues, which are a priority on the BA agenda, are being dealt with.