Lithuania Commits to Seek Euro Adoption in 2015

Lithuania’s government and central bank agreed to seek euro adoption in 2015, pledging action to ensure inflation falls to the required level.

“We’ve agreed to seek the ambitious goal of joining the euro zone in 2015,” Prime Minister Algirdas Butkevicius said today in the capital, Vilnius, after meeting Finance Minister Rimantas Sadzius and central bank Governor Vitas Vasiliauskas.

The government will maintain fiscal discipline and state institutions will avoid raising regulated prices to bring price growth within the European Union’s limit, Vasiliauskas said. Inflation is the only euro-adoption criteria that Lithuania doesn’t already meet, he said.

The 2015 target would probably make Lithuania the last of the three Baltic nations to introduce the euro. Latvia plans to join the euro area next year, while Estonia made the switch in 2011. Lithuania missed a previous 2007 goal because inflation was 0.1 percentage point more than than the level permitted by the EU.

To contact the reporter on this story: Bryan Bradley in Vilnius at bbradley13@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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