1st of January - Eurozone joined Latvia!

Press conference about the benefits of the euro introduction

Ministry of Finance, 03.01.2013

On Friday, 4 January, the Parliamentary Secretary of the Ministry of Finance Ms. Karina Korna, Minister Counsellor of Ministry of Finance Mr. Janis Platais and the Chief economist of the Bank of Latvia Ms. Daina Paula inform journalists about the gains from the euro introduction. They emphasize, that introduction of euro will produce the benefits for all society groups - for that reason we have to consider the introduction of euro as a common individual and national welfare target.

Joining the euro zone on 1 January 2014, it is a target that ensures a long-term growth for Latvia and due to the common European currency we will achieve higher welfare level for each person (all society). As the first beneficiaries from the introduction of the euro will be economic active inhabitants - well educated persons with professional work experience. The success in a private sector, entrepreneurship growth resulted from the foreign direct investments and additinal income from the tax payments will rise the welfare for other groups of society, for example, the salary growth for teachers, doctors, policeman, rising the pensions, minimal salary and social benefits. The calculation of the Bank of Latvia indicates that due to introduction of euro Latvia can establish additinal 33 thousand new workplaces, that ensure work for unemployed and enlarge the labour market and better precondition for planning a career for young people.

Each consumer gets benefits from the euro introduction, because of joining in euro zone will decrease the risk of price fluctuations. The price-increase will be insignificant (approximately 0.3%) as it was in other memberstates that were recently introduced the euro, even for some goods there will be opportunity to reduce prices because of the growing competition, for example, in electrical engineering products.

There will be gains also for agricultural sector - the elimination of the costs from the payments convertion costs and more favourable conditions for credits.  However, more important is that the European Union will consider us as a member of euro zone and will listen more in our arguments. Stronger integration into the European Union will give us additional opportunity to protect the interests of our country.

Presentation from the press conference available in Latvian here.