EU Gives Green Light to Latvia's Eurozone Entry Bid

European Commissioner for Economic and Monetary Affairs Olli Rehn. Photo by EPA/BGNES

Latvia will become the 18th country to use the euro after being approved for membership by the European Commission.

In a report, the Commission confirmed that the Baltic state had met the criteria for joining the single currency.

Olli Rehn, Commission Vice-President responsible for Economic and Monetary Affairs and the Euro, said: “Latvia’s experience shows that a country can successfully overcome macroeconomic imbalances, however severe, and emerge stronger,”

“Following the deep recession of 2008-9, Latvia took decisive policy action, supported by the EU-IMF-led financial assistance programme, which improved the flexibility and adjustment capacity of the economy within the overall EU framework for sustainable and balanced growth. And this paid off: Latvia is forecast to be the fastest-growing economy in the EU this year,” Rehn added.

Latvia will start using the currency at the beginning of 2014 after meeting the criteria for membership, including low inflation and long-term interest rates, as well as low public debt.

Baltic neighbor Estonia adopted the euro in 2011. Lithuania has said it hopes to join the bloc in 2015.

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