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In line with our expectations, the convergence reports by the European Central Bank (ECB) and the European Commission (EC) provide a positive appraisal on Lithuania’s readiness to join the euro area. Lithuania fulfils all Maastricht criteria with a good margin, Swedbank Macro Research wrote in a commentary.
Over the reference period from May 2013 to April 2014 the 12-month average rate of inflation in Lithuania was 0.6% – well below the reference value of 1.7% for the criterion on price stability. In 2013 the general government budget balance showed a deficit of 2.1% of GDP and was below the 3% threshold, meanwhile, the general government gross debt-to-GDP ratio stood at 39.4% – well below the 60% reference value.
Lithuania also fulfils the criterion on the exchange rates – the Lithuanian litas has been participating in the ERM II since the 28 June 2004 and Lithuania has not devalued its currency’s central rate against the euro. The average long-term interest rate in Lithuania in the year to April 2014 was 3.6%, below the reference value of 6.2%. (more)
Read the Whole story here: http://www.lithuaniatribune.com/68772/green-light-from-the-ec-and-the-ecb-for-lithuania-to-adopt-the-euro-201468772/
Source: the Lithuania Tribune