- The European Commission has published its Convergence Report on Latvia and concludes that the country fulfils the conditions for adopting the euro on 1 January 2014.
The European Commission has today published its Convergence Report on Latvia. It concludes that Latvia has achieved a high degree of sustainable convergence with the euro area. Therefore the Commission proposes that the Council decide on Latvia’s adoption of the euro as from 1 January 2014. Finance Ministers are expected to take the formal decision on 9 July. The conditions for euro adoption consist of four stability-oriented economic criteria regarding the government budgetary position, price stability, exchange rate stability and convergence of long-term interest rates. The national legislation on monetary affairs must also be in line with the EU Treaty. Moreover, additional factors are taken into account in the assessment (e.g. balance of payments, market integration), as indicators that the integration of a Member State into the euro area will proceed without difficulties.
The current report was prepared upon the request of Latvia, as the next regular Convergence Report is only due next year. According to the Treaty, the Commission prepares a report every two years or upon request by a Member State with a derogation.