Lithuania’s entry into euro zone may be delayed

| February 7, 2011
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Lithuania’s President, Dalia Grybauskaite, has today said its entry date for the euro zone may be delayed, citing budget and rising consumer prices for its delay in adopting the single currency.

The country’s current target date for euro zone entry is 1 January 2014 but the Baltic nation needs to trim its budget deficit (in accordance with EU rules) to 3% of GDP in 2012 from 8% in 2010.

Rising inflation is also a problem for the ex-Soviet republic – the rate soared to 3.8% in December, from -0.5% in February last year.

Lithuania‘s economy, meanwhile, expanded 4.6% in the fourth quarter on an annual basis – recovering from a tough recession that hammered growth.

Meanwhile, in a press conference, the President said: “Lithuania is and will remain a country with the goal of adopting the euro and guaranteeing stable growth but as far as dates are concerned, I would not swear on one.” .

The news comes after fellow Baltic state, Estonia, joined the euro zone on 1 January – becoming the 17th member to do so.

Meanwhile, news of the possible delay comes just a few months after Romania’s President, Traian Basescu, said its entry date for the euro zone may be delayed as it introduces tough austerity measures in order to avoid a Greek-style debt crisis.

Romania’s current target date for euro zone entry is 1 January 2015 but Mr Basescu said this could be postponed by “one or two years” as it aims to slash the budget deficit to 3% by 2012.

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  1. Nick Uselis says:

    Lithuania’s government seems incapable of doing much these days. Los of excuses, but nothing gets done.