EURO - key considerations for future perspective

1,176 views

Published on

Presentation by Andris Vilks, Minister of Finance, Republic of Latvia. Euro Conference Latvia 2013

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,176
On SlideShare
0
From Embeds
0
Number of Embeds
448
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

EURO - key considerations for future perspective

  1. 1. EURO - key considerations for future perspective Andris Vilks, Minister of Finance Republic of Latvia MINISTRY OF FINANCE REPUBLIC OF LATVIA
  2. 2. EURO – key element in EU construction Joining the Eurozone is a logical step, if we believe in EU as an construction Decline of Bretton Woods system Werner report 1970 «Currency Snake» system 1972 European Monetary system and ECU 1979 Jacques Delors report 1989 Maastricht Treaty 1992 o The key element of EU – a united economic area (free movement of persons, goods, services and capital) requires a monetary union o History suggests, that monetary unions without common monetary policy sooner or later fail o Common monetary policy would imply single currency
  3. 3. EURO – key driving force for change in Latvia o EURO = crisis exit strategy o EURO = key driving force: - to put Latvian economy on solid ground - to perform structural reforms
  4. 4. EURO – catalyst of EU reform agenda o Euro has been served as indicator to reveal the hidden deficiencies in EU construction: - market forces alone cannot exert disciplinary influence to Member States and can contribute to the financing of economic imbalances; - EU rules are not respected (Maastricht deficit and debt ceilings, opening of Excessive Deficit Procedures). Common monetary policy reveals the inefficiency of current fiscal policy coordination and calls for greater centralization in management of fiscal policy and greater solidarity
  5. 5. Latvia in euro zone – what can be expected from the new member? a silent partner? no focused exclusively on its short term gains/loses? no indifferent to common problems ? no cold to acts of solidarity? no strong advocate to respect adopted rules? yes believers to fiscal discipline? yes ally towards the deeper integration in EMU? yes
  6. 6. Improving the EMU – how far to go towards deeper integration? Economic union Monetary union Banking union Fiscal union Political union o In the Eurozone Europeans formulate their views and attitudes around these concepts and the future of EU appears high on political agenda o Support of Europeans is vital for reforms to be implemented
  7. 7. Joining the EURO – how far to go towards deeper integration? «Pastāvēs, kas pārvērtīsies» «Sustain through the change” J. Rainis 1865 -1929 In the changing environment one could use emerging opportunities for a better life Introduction of the EURO brings these questions also into the minds of Latvians
  8. 8. Growth in natural for all living beings Global development suggest that deeper integration in EU is natural Global development suggest that Euro introduction in Latvia should be seen as natural
  9. 9. RETURNS TO EUROPE NATIONAL SYMBOL OF LATVIA
  10. 10. FROM JANUARY 1ST, 2014 EUROZONE IS JOINING LATVIA
  11. 11. EURO. LATVIA GROWS! Andris Vilks, Minister of Finance Republic of Latvia

×