The Convergence Report issued today by the European Commission confirms that Latvia meets the conditions for adopting the euro. This is a great opportunity for the future growth of Latvia’s economy, but at the same time it imposes a greater obligation on us to continue reforms that have been commenced. So said Chairperson Zanda Kalniņa-Lukaševica during today’s meeting of the European Affairs Committee.

On Wednesday, 5 June, right after the Convergence Report on Latvia was made public, members of the Committee met with Christian Weise, Head of the Unit of the Directorate General for Economic and Financial Affairs of the European Commission, who is the official responsible for preparation of this Report.

“Membership in the euro area is merely an efficient tool for ensuring economic growth; it is not a goal in itself, nor does it provide for instant abundance. Therefore, now, after receiving a positive Convergence Report, we cannot rest and indulge in self-complacency – implementation of reforms has to continue,” said Kalniņa-Lukaševica.

The Chairperson voiced an opinion that membership in the euro area will lay greater responsibilities on Latvia and that we will be able to ensure economic sustainability and increase our welfare only by diligently pursuing our public administration reforms and adjusting the structure of our economy. “It entails diligent implementation of industrial policy, reforms in higher and vocational education, adoption of new construction regulations, as well as creation of stimuli for business, research and development,” said Zanda Kalniņa-Lukaševica. Adoption of the euro will stabilise and secure our business environment, thus enabling Latvia to attract additional investments, create new jobs and increase productivity.

Christian Weise also emphasised that implementation of structural reforms will remain one of the main challenges for Latvia. Furthermore, Latvia will have to continue developing a responsible fiscal policy and ensuring that an increase in salaries is coupled with an increase in productivity. The Commission’s representative indicated that, in general, Latvia as a small country will benefit from introduction of the euro, provided that its economy is competitive.

Zanda Kalniņa-Lukaševica indicated that membership in the euro area is of great political significance as well. “It will entitle Latvia to proactively participate in defining EU’s economic policy. It will enable us to be among the most closely integrated EU member states, the so-called core member states, and not to remain a comparatively isolated country at the periphery of the Union,” indicated the Chairperson.

Concurrently, Kalniņa-Lukaševica emphasised that now the government and the Saeima have a great responsibility to explain and justify the need for adoption of the euro by 1 January 2014 and thus to gain popular support for this process. “I expect the Ministry of Finance to be more active and efficient in educating, informing and persuading people on the need and reasons for introducing the euro,” indicated Kalniņa-Lukaševica.


Saeima Press Service