Against the wishes of its own people; Latvia reluctantly joins euro

Euro-monument in Riga: The Latvian government is convinced of the merits of joining the euro; the public less so - EUObserver

“Latvians have been forced to adopt the euro and haven’t been allowed [to have] their say. The majority of the population is opposed to the move,” says Andris Orols, chairman of the Anti-Globalist Association, adding that Latvia will import “other goods at a cheaper rate which means [the country] will produce less and ruin the economy.”

The Bank of Latvia has even launched a PR campaign to convince its people that this year is the right time for the country to switch currency.

“Latvia is a small, open economy with both loans and deposits, very much in euros already,” said Martin Gravitis, a spokesman for the Bank of Latvia. “[Latvia’s] people will have higher ratings and lower interest rates on their loans.”

Some of the country’s politicians say the government simply had no choice.

“It’s inevitable. We took the responsibility to join the eurozone when we entered the EU. It doesn’t matter how much money there is in our pockets, it matters how much money we have,” said Janis Urbanovich, leader of the country’s Social Democratic Party.

The European Central Bank has recently warned the country that the high level of foreign deposits, mostly from Russia, in Latvian banks, was a risk factor.
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