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