Latvia to be part of EA18

The EU Commission have recommended to the Council that Latvia be admitted as the 18th member of the Euro area from the first of January 2014. Documents here.

10 replies on “Latvia to be part of EA18”

Poor but stable, Latvia looks set to join the club
5 June 2013 Presseurop Diena, Der Standard

The European Commission has further cleared the way for Latvia’s accession to the Eurozone. In a document published on June 5, it reports that the country “has achieved a high degree of sustainable economic convergence with the euro area.” It now rests with the Eurogroup ministers to give the country the final green light to become part of the currency bloc on January 1, 2014.

Latvia “fulfils all the criteria needed to adopt the euro,” and “has made ​​the necessary legislative changes required to adopt the euro,” says Diena. The Latvian daily adds that –

The average year on year inflation rate in Latvia in April was 1.3 per cent, which is well below the required 2.7 per cent level. […] The budget deficit fell to 1.2 per cent of GDP in 2012 and is expected to be 1.2 per cent of GDP in 2013. […] Public debt dropped to 40.7 per cent of GDP in 2012 and is expected to hit 40.1 per cent in 2014.

However, with a GDP per capita of $14,800 (€11,327), “the country is one of the poorest in the EU …



In 2014, Pedro Passos Coelho (of the center-right PSD) promised 2.5 per cent growth, unemployment curbed to 12.6 per cent, a 1.8 per cent deficit and a debt to GDP ratio of 105 per cent. In fact the figures for next year are: 0.6 per cent growth at best, unemployment at 18.5 per cent, a 4 per cent deficit, and debt-to-GDP ratio 123.7 per cent.

Wot? Are Facebook, Google, et al looking for a new EZ country to filter their money through? Ireland is clearly getting too hot for them.

I wonder if Finland gave Latvia a Cardboard Baby Box to Welcome them to Euro-zone

It comes with a snowsuit, for when you’re new parents leave you out in the cold for decades. To toughen you up.

There are bathing products. Standard issue novelties to all ex-soviet wards.

Condoms are included, since we don’t want to be bring more children into the world in these trying conditions. They are also essential to avoid contagious diseases when Germany, ECB or the IMF comes a-knocking at the backdoor and won’t take no for an answer. Ask Greece or Cyprus: unprotected sex in a threesome can leave you deathly sick.

As a bonus, if needed, the box doubles as a little coffin. Sleep soundly in your new Euro crib Latvia!

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