Latvia Becomes Latest Eurozone Member
Whilst millions across the globe celebrated the coming of the New Year, the Baltic state of Latvia ushered in a new-era by becoming a member of the Eurozone.
Despite opposition from a large section of the population, Latvia becomes the 18th and latest affiliate state of the EU states to use the Euro marking an incredible turnaround from financial ruin to economic prosperity.
From January 1st 2014 the Euro will replace Lats as the country’s official currency following a four year delay arising from the global economic crisis. A deal to move from their now former currency had been agreed back in 2010, but with a climate of on-going global recession continuing throughout Europe, the Latvian government decided to delay their move to a new currency.
High-risk lending and borrowing practices forced Euro members such as Greece, Ireland, Portugal, Spain and Cyprus to seek bailouts, and there continues to be much scepticism surrounding Latvia’s suitability as the most recent member of the Eurozone.
Having joined the EU on May 1st 2004 the government and businesses within Latvia hope that the single currency will attract foreign investors to the republic, and in the process continue their standing as one of the world’s fastest growing economies.
To commemorate the occasion of their joining the single European currency, a series of new coins have been released across countries which use the Euro with the design containing the Latvian Coat of arms. Coins will also include the traditional Latvian Maiden which became a symbol of their independence during Soviet occupation.
Changes were made almost as soon as the New Year was rung in across the country as ATM’s immediately stopped distributing Lats, and Post Offices extending their period of free exchanges to Euros for three months. In addition both Lats and Euros will be in circulation for a fortnight and all shops will bear dual pricing signs for up to six months following the adoption of the country’s new currency.
Despite some hesitancy towards the new currency, Prime Minister Valdis Dombrovskis appeared confident that growth can be assisted by the adoption of the Euro. He said: “It’s a big opportunity for Latvia’s economic development .”
His thoughts were backed by Ilmars Rimsevics, Governor of the Latvian Central Bank, who said: “(The) Euro brings stability and certainty, definitely attracting investment, so new jobs, new taxes and so on. So being in the second largest currency union I think will definitely mean more popularity.”
Despite opposition from a large section of the population, Latvia becomes the 18th and latest affiliate state of the EU states to use the Euro marking an incredible turnaround from financial ruin to economic prosperity.
From January 1st 2014 the Euro will replace Lats as the country’s official currency following a four year delay arising from the global economic crisis. A deal to move from their now former currency had been agreed back in 2010, but with a climate of on-going global recession continuing throughout Europe, the Latvian government decided to delay their move to a new currency.
High-risk lending and borrowing practices forced Euro members such as Greece, Ireland, Portugal, Spain and Cyprus to seek bailouts, and there continues to be much scepticism surrounding Latvia’s suitability as the most recent member of the Eurozone.
Having joined the EU on May 1st 2004 the government and businesses within Latvia hope that the single currency will attract foreign investors to the republic, and in the process continue their standing as one of the world’s fastest growing economies.
To commemorate the occasion of their joining the single European currency, a series of new coins have been released across countries which use the Euro with the design containing the Latvian Coat of arms. Coins will also include the traditional Latvian Maiden which became a symbol of their independence during Soviet occupation.
Changes were made almost as soon as the New Year was rung in across the country as ATM’s immediately stopped distributing Lats, and Post Offices extending their period of free exchanges to Euros for three months. In addition both Lats and Euros will be in circulation for a fortnight and all shops will bear dual pricing signs for up to six months following the adoption of the country’s new currency.
Despite some hesitancy towards the new currency, Prime Minister Valdis Dombrovskis appeared confident that growth can be assisted by the adoption of the Euro. He said: “It’s a big opportunity for Latvia’s economic development .”
His thoughts were backed by Ilmars Rimsevics, Governor of the Latvian Central Bank, who said: “(The) Euro brings stability and certainty, definitely attracting investment, so new jobs, new taxes and so on. So being in the second largest currency union I think will definitely mean more popularity.”