The euro is not ready for Lithuania

Hello Blogfans!

After this incredible journey we finally arrived , unfortunately , at our last destination: Lithuania. Lithuania is an atypical destination so we were interested in what the country would had to offer.
Lithuania is part of the European Union since 2004 so we assumed their currency would  be the euro. Unfortunately we thought wrong..
So we had to go to the bank for Litai (LTL) , the official currency of Lithuania.

In the bank our curiosity took over and we asked the bank servant if he knew why Lithuania still didn’t join the Eurozone.
He told us that Lithuania aims for the euro but that the aim is political rather than economic. Many politicians are arguing that joining the Eurozone is necessary , but in fact Lithuania is performing better already than many Eurozone countries. The euro has obvious advantages but it also has some drawbacks.
That’s why , in the opinion of the bank servant , the question should not be whether Lithuania is ready for the euro , but if the euro is ready for Lithuania. Economics are unable to say what will happen to the euro in the next few years with several economies trying to avoid default.  So it would be wise to adopt the euro after the situation has stabilized.
Adopting the strict fiscal agenda required for entering the Eurozone would be beneficial, but there should not be a blind goal of adopting the currency.

In my opinion it’s a good decision of Lithuania to play a waiting game. Now the country is already performing better than many Eurozone countries so it wouldn’t be wise to take avoidable risks by entering the Eurozone. I’m sure that they will enter the Eurozone in the future but they have to wait for the right moment so it becomes a win-win situation for the Eurozone as well as for Lithuania.

But now the time has come to say goodbye.. I hope you guys enjoyed reading my blogs and don’t hesitate if you want to discover the world yourselves. It’s a real adventure to travel around the world with some friends so.. I look forward to read your blogs in the future!

Greetings

Nelson

source: http://www.lithuaniatribune.com/2011/04/08/the-euro-is-not-ready-for-lithuania/