Metinė prenumerata tik 6,99 Eur. Juodai geras pasiūlymas
Išbandyti
2012 11 19

Algirdas Butkevičius warns Lithuania may become backwater country without euro

Social Democratic leader Algirdas Butkevičius warns that Lithuania risks becoming "some backwater state" if it does not join the eurozone.
Algirdas Butkevičius
Algirdas Butkevičius / Irmanto Gelūno / BNS nuotr.

Butkevičius was speaking after a meeting with President Dalia Grybauskaitė, who said that she will propose him for prime minister.

The Social Democratic leader said that Lithuania should strive to join the single currency "as soon as possible", but added that inflation will prevent it from doing so until 2015, a year later than neighboring Latvia.

"Given all macro-indicators, fiscal policy indicators, 2015 is the most realistic year for Lithuania to join the euro. We know that Latvia will introduce (the euro) in 2014. So, if we (join the eurozone) much later, then we may become some backwater state," he told reporters.

Butkevičius promised that the new government will maintain fiscal policy discipline.

The Bank of Lithuania's economists said on Monday that Lithuania is unlikely to meet the so-called Maastricht criterion in 2012 and 2013 to qualify for eurozone membership in 2014.

"We will not meet the price stability criterion either in late 2012 or in late 2013," Rūta Rodzko, the director of the Bank of Lithuania's Economics and Financial Stability Service, said at a news conference. This means that the country will not be able to join the eurozone either in 2014 or in 2015, she said.

Lithuania's bid to join the euro in 2007 was rejected because its inflation exceeded the Maastricht limit. Estonia adopted the single currency in 2011.

Report mistake

Successfully sent

Thank you

Economy

Lithuanian producers of EPS on the way to circular economy
Gilužio Rivjera by the real estate company Homa – hundreds of apartments and millions in investment
Capitalica fund successfully issued bonds amounting to EUR 5 million to finance the Verde project in Riga

Feature

State Progress Strategy 'Lithuania 2050': will Lithuania become the 'Silicon Valley' of social enterprise?
Citus Experts: Planning to Furbish or Brush Up your Home Interior? Get Ready for a Brutal Run
How do the country's most desirable employers nurture IT talents?

Opinion

Ramūnas Vilpišauskas. The president’s achievements in Brussels were modest
Laurynas Jonavičius. Will the new German government’s foreign policy coincide with Lithuanian interests?
Eastern Partnership ‘beyond westlessness’: a new momentum for the European integration

Politics

Taiwanese Minister Ming-hsin Kung – about Lithuania’s strengths and the two countries’ looming plans
The double standards of “values-based policy”: Lithuania did not join the condemnation of Turkey
Behind the scenes of ambassadorial appointments: Seimas looking for clarification on continuing questioning at the Presidential Palace