Gold9472
03-16-2006, 09:15 PM
Lithuania requests to adopt euro in 2007
http://www.businessweek.com/ap/financialnews/D8GCQ4K0C.htm?campaign_id=apn_home_down&chan=db
MAR. 16 12:36 P.M. ET Lithuania on Thursday formally applied to the European Union to adopt Europe's single currency next year and the EU Commission said it will reply on May 16.
Lithuanian officials are hoping for approval from the EU's finance ministers at a July 11 meeting, when the ministers will also discuss Slovenia's bid to adopt the euro.
Lithuania is asking to join the euro zone as of Jan. 1, 2007, even though it is not clear that it meets the strict economic criteria designed to keep the economies of the euro zone stable.
EU nations can only join the euro if their inflation does not exceed 2.4 percent, their annual deficit is limited to 3 percent of their gross domestic product and total public debt is not more than 60 percent of gross domestic product.
Lithuania currently has an annual inflation of 2.7 percent, but officials in Vilnius said they are confident the EU newcomer can bring inflation down to an acceptable level in less than 10 months.
"I am sure we will meet the ... criteria," Finance Minister Zigmantas Balcytis said. "In fact, Lithuania has already been in Europe's single currency zone for four years, as our national currency the litas is pegged to the euro."
All 10 countries that joined the EU in 2004 have announced they want to adopt the euro. Slovenia and Estonia also aim to join next year.
Latvia, Cyprus and Malta want to adopt the euro in 2008, with Slovakia following a year later, joined by the Czech Republic in 2010. Hungary is also due to join in 2010. Poland has not set a target date at all.
Three other EU members -- Britain, Denmark and Sweden -- have opted to stay away from the single currency for political reasons.
http://www.businessweek.com/ap/financialnews/D8GCQ4K0C.htm?campaign_id=apn_home_down&chan=db
MAR. 16 12:36 P.M. ET Lithuania on Thursday formally applied to the European Union to adopt Europe's single currency next year and the EU Commission said it will reply on May 16.
Lithuanian officials are hoping for approval from the EU's finance ministers at a July 11 meeting, when the ministers will also discuss Slovenia's bid to adopt the euro.
Lithuania is asking to join the euro zone as of Jan. 1, 2007, even though it is not clear that it meets the strict economic criteria designed to keep the economies of the euro zone stable.
EU nations can only join the euro if their inflation does not exceed 2.4 percent, their annual deficit is limited to 3 percent of their gross domestic product and total public debt is not more than 60 percent of gross domestic product.
Lithuania currently has an annual inflation of 2.7 percent, but officials in Vilnius said they are confident the EU newcomer can bring inflation down to an acceptable level in less than 10 months.
"I am sure we will meet the ... criteria," Finance Minister Zigmantas Balcytis said. "In fact, Lithuania has already been in Europe's single currency zone for four years, as our national currency the litas is pegged to the euro."
All 10 countries that joined the EU in 2004 have announced they want to adopt the euro. Slovenia and Estonia also aim to join next year.
Latvia, Cyprus and Malta want to adopt the euro in 2008, with Slovakia following a year later, joined by the Czech Republic in 2010. Hungary is also due to join in 2010. Poland has not set a target date at all.
Three other EU members -- Britain, Denmark and Sweden -- have opted to stay away from the single currency for political reasons.