Thursday, January 1, 2015

Lithuania and the euro: the hopes and doubts – Radio Liberty

Lithuania and the euro: the hopes and doubts – Radio Liberty

from 1 January 2015, Lithuania joined the eurozone. Previously, it did the other two Baltic countries – Estonia and Latvia. From the first day of the new year will be donated Lithuanian litas, in unlimited quantities and constantly exchanged for euro at the Central Bank of Lithuania. Commercial banks are the same, as well as post offices of the country will do it for six months. Customer accounts of banks amount will be automatically converted into euros. Pay for services will be in euro and in litas until mid-January – while handing issued only in euros. From January 1, all ATMs have already started to give out money only evrokupyurami.

Following the preparation of Lithuania for the euro, the European Commission stated: everything happens correctly, successfully. The government and the central bank of the country went to the euro, despite the difficulties, the criticism of opponents and weak support for the population. Only now, before parting with the cast for the first time in all the years it became more optimistic than those who are not happy about the arrival of the euro. According to polls, 53 percent of Lithuanian residents – for the transition to the euro, against – about 40 percent.

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The first payments in Euros in stores in Riga, January 2014. Lithuania follows the same path a year later

Basically, ideological opponents euro in Lithuania bit, says sociologist Vladas Gajdis. According to him words, mostly Lithuanian opponents of the euro consider that the currency in the country should be introduced, but not now, but later. It’s more people on the background of past negative experiences afraid of any reforms. Or those who are working or studying in the UK, Sweden, Denmark and sees – this country and live safely without the euro. Interestingly, when the cool of the population of the euro Lithuania ranks first in the EU’s confidence in the EU itself.

– Is it important for people – along with financial concerns that all go up – the emotional factor, reluctance to part with the national currency?

– It certainly is, but in the background. Mark in Germany, the French franc, peseta in Spain, the Italian lira, drachma in Greece … For hundreds of years there were these currencies, there is even more difficult, perhaps, was to part with them. Our lit. remain in collections in museums. It’s nice that on one side of the coin of 2 euros minted here, a horseman Vitis with the coat of arms of Lithuania. It’s a tradition: the eurozone countries, making the coins at one side of their “nationalized”, decorate their characters.

– How do you personally prepare for the introduction of the euro?

Let’s hope that the problem of the size of the purse was in this transition biggest

– In the stores, accounts for services prices in Lithuania long pointed in two currencies, it helps people get used. How do I prepare? I will try to get rid of cash in your wallet LTL, so you do not waste time on the exchange. Major amounts of leave on the card, where on the night of January 1, they automatically “turn” in the euro.

– You have prepared a larger purse? Euro banknotes larger LTL and coins significantly harder …

– God grant that the problem was the size of the purse during this transition the biggest … – Lithuanian sociologist says Vladas Gajdis .

In Lithuania attempts to hold a referendum on the introduction of the euro, but they came to nothing. Join the European Union, urged skeptics evroentuziasty, Lithuania and so are required to join the euro zone as soon as it will allow the country’s macroeconomic indicators. Now they allow it.

a consistent critic of the transition to the euro all the time in Lithuania was an economist Valdemaras Katkus :

– No need to rush to the euro area . In addition, this country will be a lot of cost. Government, among other things, should make 300 million euros in European stabilization fund. And it turns out that Lithuania – among the EU Member States is certainly not the richest country – will be obliged to, along with other fund other state. Plus the total cost of the transition to the euro, on the recalculations. All this will inevitably affect the prices. There is a problem and psychological: I do not know how long it will until people get used to the new order numbers on the price tags. For a long time, probably will be every time to evaluate the product, mentally multiplied by 3.45 – this is the litas exchange rate against the euro. It is stressful for many people, especially the elderly.

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Former Prime Minister Andrius Kubilius

Supporters of the introduction of the euro, the former prime minister of Lithuania Andrius Kubilius – their arguments:

– Estonians and Latvians as smart as us. Having similar economic history, without an independent monetary system since 1994, all three countries are seeking to become full-fledged members of the European economic, including financial systems. Yes, it is experiencing a variety of crises, but a coherent alternative to it for us, I do not see.

Another MP, an economist at Povilas Gilis , careful assessments of:

– Poles something in the euro area are not included! Czechs think, Hungarians are very careful. This caution I like. Is there a guarantee that the euro zone itself does not break? If it suddenly happens, the costs will be enormous! I call this scenario the financial Chernobyl. And most importantly, once we introduce the euro, the more logical it would conduct a unified fiscal policy, ie a single budget in the eurozone. This requires political integration, essentially the federation. But we do not discuss it! No open conversation about whether we are ready to enter into a federation or a confederation? This is a major political issue, but for some reason he pushed aside.

People fear the new currency. We, unfortunately, monetary reform did not pass without problems, there is a bitter experience

Who Lithuania uniquely for introduction of the euro, as are employees of the banking sector. One of them – analyst Catherine Royak :

– The people fear the new currency. We, unfortunately, monetary reform did not pass without problems, there is a bitter experience. But the introduction of the euro – a transition that is already fairly well worked out. In fact, 10 years ago entered the EU, we made a promise and enter the eurozone. If you are, so to speak, came into the store naked, barefoot and dressed up, then go out again bare-naked as you do not want, and have to pay …

– Skeptics believe that the loss of the national currency is the loss of one of the most important attributes of statehood, sovereignty …

– Really all these years already lit and so was pegged to the euro. Yes, there will always be nostalgia. But I would not bind the national idea exclusively with a view bills. In general, the eurozone, it’s like a marriage – it is love, there is convenience. The main thing that the calculation was correct.

– What about the marriage contract?

– The marriage contract drawn up 10 years ago! Then we signed the accession not only in the EU but also in the euro area. In general, the choices we have not so much. In addition, there are risks that Lithuania may face, without entering into the eurozone. In today’s troubled world many destabilizing factors. Euro same – the currency stable, no matter what. This way – predictable.

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Image of the euro symbol on the building of the European Central Bank in Frankfurt (Germany)

In addition to government bodies, monitoring the activities of banking and trade institutions during the introduction of the euro and non-governmental organizations involved. Kestutis Kupschis is the Association for Consumer Protection:

– Use and foreign experience. Consulted with its northern neighbors, adopted experience on-site inspections. Conduct inspections in trade, eliminate the violations together with the sellers immediately. Accept our online platform of consumer complaints, react quickly, inform management of these enterprises, they are not all right. In general, the pessimists say, in countries in transition to the euro, along with a very small increase in the minimum retail price, after this transition began gradually increase salaries. This, I hope, will be much more important than the possible appreciation of a few cents due to rounding prices when converted.

Small countries, of course, better to stay not singly and together, including currency

Opinions passers in the streets of Vilnius:

– The euro is necessary for the authorities, who want to be favorites in international circles. Change currency always has a negative impact on people, the sellers are, cunning, speculating. It is necessary for politicians, bankers, for the prestige.

– I – for! And then had to convert, now will not be spending on it. And to borrow more cheaply. Our rating rises, the more reliable the country. I think over time settle down and be fine.

– I do not welcome. I know from friends, Latvians and Estonians, there it did not lead to a better life, many of them are unhappy. The rich got richer, the poor poorer.

– I recently became a pensioner, more free time, I travel a lot for me actual euro. There are cheap flights from Lithuania, bought a plane ticket, a couple of hours – and you’re in Paris, Brussels and Rome. Enjoy life!

– negative attitude. The main thing is not changing! How many people in litas have received little, so in the euro will be. I do not want it all, the common people, that is the majority, solid inconvenience and loss.

– The positive thing that we in the European Union for ten years, it’s time! All calm down.

– a small country of course, better to stay not alone, but together, including in foreign currency. Yes, there are advantages, there are disadvantages, but if the euro for the benefit of the state, let introduced, we need not break your head over this.

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