According to EU Convergence Report, Lithuania is ready to adopt the euro on 1 January 2015.
European Commission published the Convergence Report which examines the progress of eight Member States towards meeting the criteria for adopting the euro.
“The countries we have looked at – Bulgaria, Croatia, the Czech Republic, Hungary, Lithuania, Poland, Romania and Sweden – have made uneven progress towards this goal. I encourage all of them to pursue policies that will help them to achieve a higher degree of sustainable convergence with the euro area,” said Olli Rehn, Vice-President of the European Commission and member of the Commission responsible for Economic and Monetary Affairs and the Euro yesterday, a press release informs, according to europa.eu.
At the same time, the Convergence Report conclusion is that Lithuania is ready to adopt the euro on 1 January 2015.
“I expect this conclusion to be discussed by the relevant EU institutions over the coming weeks, so that a final decision can be taken by the Council, probably in the second half of July,” Rehn added.
Lithuania’s readiness to adopt the euro reflects its long-standing pursuit of prudent fiscal policies and serious economic reforms, the report reads. According to Rehn, Lithuania credibly meets the five Maastricht criteria for euro adoption: Inflation is well below the reference value; the fiscal deficit and public debt are both on a sustainable path; the exchange rate has remained stable vis-à-vis the euro without any signs of tension; and long-term interest rates have converged to low levels. Moreover, the legal framework has been brought fully in line with the Treaty requirements. Also, Lithuania’s external balance has improved strongly, mainly based on gains in competitiveness. Its product, labour and financial markets are well-integrated with the euro area economy and financial supervision and regulation have been strengthened.
“Lithuania is now on track to join Latvia and Estonia to make a ‘Baltic full house’ in the euro area,” the EU official concluded his speech.