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

Latvian President Andris Berzins and Christine Lagarde. Riga, 5.06.2012. Photo: president.lv

Lagarde lauded Latvia's accomplishments in bringing order to the country's economy, and emphasized Latvia must complete three more tasks – strive to join the eurozone, promote economic competitiveness, reduce social inequality, writes LETA.

She pointed out that Latvia must strive to join the eurozone and implement a program to achieve this goal.

Lagarde admitted that Latvia and other Baltic States must continue with their reforms to strengthen competitiveness, facilitate labor force activity and added that education and professional training must be adapted to market requirements.

The third most important task for Latvia, according to Lagarde, is active work to ensure social cohesion. At the moment, there is a considerable inequality in terms of income in Latvia's society.

By implementing its international loan program, Latvia has proven that it can be powerful and disciplined. The IMF is proud to be part of this success story, said Lagarde.

''If the European Union says that Latvia cannot join the euro-zone, then tell me which country is capable of doing so?,'' Swedish Finance Minister Anders Borg said during today's conference on the recovery of Baltic economies in Riga.

''Who has done more to prove that they can get their economy in order?'' the Swedish finance minister asked.

He pointed out that Sweden fully supports Latvia's euro aspirations.

Borgs said that if a country wishes to join the euro-zone, it must keep its finances in order. He also added that one of Latvia's main challenges at the moment is unemployment.

As reported, Latvia has set out the goal of joining the euro-zone in 2014.

At the end of May, the European Central Bank said that none of the eight countries on the waiting list to adopt the euro meets all the required membership criteria at the moment.