Lithuania joined the euro area – RBC

Lithuania joined the euro area – RBC

In the euro zone officially since January 1, 2015 entered Lithuania. The decision, which was adopted in the summer of 2014, entered into force today.

The introduction of the euro was “an opportunity to grow and be a modern European state, put new goals and look to the future with confidence,” said a New Year’s address, President Dalia Gribuskayte transmits Lithuanian television station LTV. During the New Year’s festivities in the center of Vilnius, Prime Minister Algirdas Butkevičius solemnly took the first euro at an ATM on the main square of the city.

While ATMs in Lithuania can be removed banknotes of 5, 10, 20 and 50 euros. Denominations higher rating – 100, 200, 500 euros – in the ATMs will not load, said a representative of the Bank of Lithuania Giedrius Simonaviklus.

«Joining the euro area is a very logical step in the chain of important steps for our country. Euro will help to integrate Lithuania into the single market in Western Europe. This, of course, affect the safety, as well as membership in NATO and the EU “, – told Bloomberg Finance Minister of Lithuania Rimantas Sadzius.

Lithuania received permission to enter the euro zone on the conditions of austerity to reduce the budget deficit, recalled European Central Bank President Mario Draghi. “The Council of the European Central Bank is pleased that the euro zone expanded. But Lithuania in difficult times must take exceptional measures to achieve its goal to join the single currency area. This will be beneficial for Lithuania, and for the euro area “, – he added.

The European Parliament agreed to the accession of Lithuania to the euro zone from 1 January 2015, in July 2014. For this decision voted 545 people, 116 were against, 34 abstentions.

According to the conditions under which Lithuania joins the euro zone by the end of its fiscal year deficit budget should not exceed 3% of GDP and public debt – 60% of GDP. The inflation rate should not go beyond 1.5%. Among other criteria, called a long-term discount rate to 3,6%.

This is the second attempt of Lithuania to join the euro area. In 2006 she, Latvia and Estonia have been denied this. The reason for refusal was called excess of inflation by 0.1 percentage points The European Commission then stated that prices will rise further, reminds Bloomberg. As a result, by 2008, inflation peaked at 12.5%. After that, the country experienced economic decline by 15% in 2009. Estonia joined the euro area on 1 January 2011, and Latvia – from 1 January 2014.