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Thursday, 24 July 2014 15:14

It is final! Lithuania to adopt Euro on January 1, 2015

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The 2015 Lithuanian euro coin sample The 2015 Lithuanian euro coin sample Bank of Lithuania / www.lb.lt

European leaders announced July 23 in Brussels that Lithuania will become the 19th country to use the euro, with the currency entering circulation there on January 1, 2015.

The European Council also announced the exchange rate at which Lithuania's currency will convert to the euro. It is set at 3.45280 Lithuanian litas to the euro.

Lithuania's adoption of the euro is a major achievement for the country and reflects its long-standing goal of strengthening its presence in Europe.

It also reflects Lithuania’s long-standing pursuit of prudent fiscal policies and serious economic reforms.

This reform momentum, driven partly by Lithuania's EU accession ten years ago, has led to an increase in prosperity as GDP per capita has doubled since 1995.

There are no doubts that introducing the euro will bring a range of practical benefits to Lithuanian companies and citizens, including the elimination of exchange rate risk and lower transaction costs. As a member of the euro area, Lithuania will participate in decision-making in Eurogroup and European Central Bank on issues that have already affected Lithuania during its twelve-year-old peg to the euro. The euro will also help to support the catching-up process of the Lithuanian economy, including by attracting more foreign investment.

Alongside NATO and the EU, the euro is yet another step for Lithuania to permanently become an integral part of the European political and economic system.

The euro will also bring political and security benefits.

Alongside NATO and the EU, the euro is yet another step for Lithuania to permanently become an integral part of the European political and economic system. In joining the euro area Lithuania further solidifies its presence on the political and economic map of Europe.

This becomes especially relevant and important at the time of crisis in Ukraine when another neighboring country tries to impose its dominance in the region.

Here's how Twitter reacted to the announcement that Lithuania will join Euro Zone on Jan. 1:

 

 

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