EU – Baltic States, Financial Services, GDP, Legislation, Lithuania

The Law on the Euro Adoption was passed by an absolute majority of votes: 87 MPs voted for, 7 voted against and 13 abstained. Preparation procedures for the euro adoption, exchange of Lithuanian litas to the euro, withdrawal of the national currency from circulation as well as other aspects of introduction of the new currency were determined.

As Minister of Finance Rimantas Sadzius informed, now Lithuania has to wait for the Convergence Report to be issued by the European Commission and the European Central Bank in early June. The Convergence Reports examine whether the Member States satisfy the necessary conditions to adopt the single currency.

On the basis of its assessment, the Commission submits a proposal to the ECOFIN Council which – having consulted the European Parliament, and after discussion among the Heads of State or Government – decides whether the country fulfils the necessary conditions and may adopt the euro. If the decision is favourable, the ECOFIN Council takes the necessary legal steps and – based on a Commission proposal, having consulted the ECB – adopts the conversion rate at which the national currency will be replaced by the euro, which thereby becomes irrevocably fixed.

The Bank of Lithuania will exchange litas to the euro free of charge for the unlimited period of time. Lithuanian commercial banks as well as branches of foreign banks will carry out the same operation for 6 months after the adoption. However, those wishing to exchange more than LTL 15,000 might be required to announce about this in writing at least 3 days in advance. Lithuania Post will also exchange litas to the euro for 60 days after the adoption.

The mathematical rounding rule is proposed to be applied when converting the national currency. It will be rounded down if the digit after the decimal point is lower than 5, and rounded up if the digit is 5 or higher. At the same time, a more favourable procedure would be applied in order to protect the interests of employees and beneficiaries: converting wages, pensions and other social payments, one euro cent would be added to the new value if the third digit after the decimal point is higher than zero.

Money in customers' accounts will be converted free of charge, also retaining the unique account number.

Lithuania seeks to introduce the euro on 1 January 2015.