LFMI’s position on Lithuania’s joining the euro zone: it is not the currency as such, it is its credibility that matters
The Euro, as an aspiration, is a politically regulatory factor – it strengthens fiscal discipline and lessens political risk related to currency exchange or money emission model changes. Lithuania must pursue that the EU would not implement economic stimulus policy, but rather take decisions which would ensure sustainable and long-term growth in the EU – deregulate the market, include more flexibility in employment regulation, reduce the government sector, implement structural social and healthcare reforms. Lithuania, independently from EU actions, should implement the reforms proposed on solo basis and through this lessen the threat of internal political risk to the stability of litas. We have presented this position in the international conference “The Euro Zone in Crisis: Solutions and Future Prospects.”
