Andris Vilks: Latvia is going to introduce the euro in 2014

Ministry of Finance, 27.01.2011

On Thursday, January 13, the Minister of Finance of the Republic of Latvia Andris Vilks within the framework of introductory visit met Hermine Poppeller, Austrian Ambassador Extraordinary and Plenipotentiary to Latvia. The parties discussed economic development trends in Latvia, Latvia's euro changeover plan, current economic situation in the European Union Member States, and further cooperation between both countries.

"The Ministry of Finance continues work at the draft fiscal discipline law to ensure strict state budget discipline. Already since 2008 the Government ensures strict fiscal discipline to decrease gradually the budget deficit down to 3% of GDP level set in the Maastricht criteria. Achievement of this goal will eliminate excessive budget deficit and ensure compliance with the Maastricht budget deficit criterion, thus laying down strong foundation for the euro changeover in Latvia on January 1, 2014," informed the Minister of Finance Andris Vilks.

During the meeting with the Ambassador the Minister also acknowledged that Latvian Government will continue implementation of already launched structural reforms in order to complete the implementation in coming years focusing on more effective work of public administration, thus attaining saving of state budget expenditure.

During the meeting H. Poppeller expressed support to the work started at implementation of structural reforms and acknowledged that currently Austria is also performing budget consolidation through structural reforms in education and health sectors.

The parties also discussed experience of Latvia in implementation of the financial sector fee. The said fee is aimed at strengthening the financial system in general in order to finance, if necessary, measures to reduce negative impact of credit institutions in difficulty on other financial market participants and also partly compensate state budget resources that were allocated to financial sector stabilisation measures and from which the banking sector in general got direct or indirect benefit.

Austrian Ambassador recognised previous mutual cooperation and the work done by Latvian Government to stabilise economic and financial situation in the state.