Today, 1st January 2014, Latvia joins the Eurozone, becoming the 18th country which uses the Euro as its currency. The small country struggled financially during the economic crises, however it is now one of the fastest growing economies in Europe.
Being a former Soviet republic, Latvia has relied greatly on Russia, but the incorporation of the Euro is expected to reduce this dependency and gain greater financial independence – credit ratings (an estimate of the ability of a country to fulfil their financial commitments, based on previous dealings) should increase and more foreign investors are expected to be attracted. Olli Rehn, the EU Commissioner, said joining the eurozone marked “the completion of Latvia’s journey back to the political and economic heart of our continent, and that is something for all of us to celebrate”.
Despite this, opinion polls have suggested approximately 60% of Latvians do not want the Euro. One Latvian, Zaneta Smirnova, said she is “against the euro” and that they should have kept the Lat. But, the governor of the Latvian central bank, Ilmars Rimsevics, 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.”
What do you think about Latvia joining the Euro?
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