“Euro adoption would prove to foreign investors that the country is capable of managing its finances,” he said in an interview to Žinių Radijas on Tuesday.
Moreover, the single currency would contribute to the implementation of responsible financial policy, he said adding that sovereign financial risks and interbank interest rates might decline after the switchover, which, in its turn, might bring down credit costs.
“It would be advantageous for the entire Lithuanian economy,” Udrėnas said.
The current Lithuanian government has stated it will seek to introduce the euro in 2015. However, the economists warn that high inflation may be the biggest obstacle on Lithuania’s path to the euro zone. Some private experts believe that the country could only adopt the single currency in 2017 at the earliest.
