Monday, January 21, 2013

Latvians don't want the euro

Well, I am shocked, I tell you, shocked. Apparently the idea of the euro, due to be introduced in  Latvia in January 2014, is unpopular with the people of that country. What can they be thinking of?

They are thinking of two things: the fact that their currency is the symbol of their cherished independence (a questionable concept within the EU) and the equally important fact that they cannot trust their politicians to tell them the truth. How extraordinary! I dare say they might also be looking at the mess the eurozone is and wondering whether it is worth their while to be part of it.

ADDENDUM: I see The Banker has nominated Andres Vilks of Latvia its European Finance Minister of the Year 2013 [scroll down].
In the first nine months of 2012, Latvia’s economy grew 5.6%, the fastest pace of any EU country. The road to this remarkable turnaround was not an easy one, however. After entering into an International Monetary Fund (IMF)-supported readjustment programme in 2008, Latvia implemented a programme of fiscal adjustment which totalled about 15% of its GDP. The results were painful, but resulted in renewed confidence and subsequent successful bond issues.
In fact, a somewhat better result than seen in the eurozone.

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