ministra andra vilka uzruna latvijas eiro konferencē
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EURO - key considerations
for future perspective
Andris Vilks, Minister of Finance Republic of Latvia
MINISTRY OF FINANCEREPUBLIC OF LATVIA
EURO – key element in EU construction
Joining the Eurozone is a logical step, if we believe in EU as an construction Joining the Eurozone is a logical step, if we believe in EU as an construction
Decline of Bretton Woods
system
Werner report 1970
«Currency Snake»
system 1972
European Monetary system and ECU 1979
Jacques Delors report 1989
Maastricht Treaty1992
o The key element of EU – a united economic area (free movement of persons, goods, services and capital) requires a monetary union
o History suggests, that monetary unions without common monetary policy sooner or later fail
o Common monetary policy would imply single currency
EURO – key driving force for change in Latvia
o EURO = crisis exit strategy
o EURO = key driving force:- to put Latvian economy on solid ground
- to perform structural reforms
EURO – catalyst of EU reform agenda
o Euro has been served as indicator to reveal the hidden deficiencies in EU construction:
- market forces alone cannot exert disciplinary influence to Member States and can contribute to the financing of economic imbalances;
- EU rules are not respected (Maastricht deficit and debt ceilings, opening of Excessive Deficit Procedures).
Common monetary policy reveals the inefficiency of current fiscal policy coordination and calls for greater centralization in management of fiscal policy and greater solidarity
Latvia in euro zone – what can be expected from the new member?
a silent partner? no
focused exclusively on its short term gains/loses?
no
indifferent to common problems ?
no
cold to acts of solidarity? no
strong advocate to respect adopted rules? yes
believers to fiscal discipline? yes
ally towards the deeper integration in EMU?
yes
Improving the EMU – how far to go towards deeper integration?
o In the Eurozone Europeans formulate their views and attitudes around these concepts and the future of EU appears high on political agenda
o Support of Europeans is vital for reforms to be implemented
Joining the EURO – how far to go towards deeper integration?
«Pastāvēs, kas pārvērtīsies»«Sustain through the change”
J. Rainis 1865 -1929
«Pastāvēs, kas pārvērtīsies»«Sustain through the change”
J. Rainis 1865 -1929
In the changing environment one could use emerging opportunities for a better life
Introduction of the EURO brings these questions also into the minds of Latvians
Growth in natural for all living beings
Global development suggest that deeper integration in EU is natural
Global development suggest that Euro introduction in Latvia should be seen as natural
RETURNS TO EUROPE
NATIONAL SYMBOL OF LATVIA
FROM JANUARY 1ST, 2014
EUROZONE IS JOINING LATVIA
EURO. LATVIA GROWS!
Andris Vilks,Minister of Finance Republic of Latvia