ANKARA
Lithuania will adopt the euro as its currency starting from Jan.1, 2015, and will become the 19th member of the European Monetary Union.
The move comes as the rest of the Baltic region is battling to restore growth and reduce unemployment. Lithuania's bid to adopt the common currency was rejected in 2006.
Lithuania’s economy has been growing since 2011, according to European Commission statistics, and GDP is forecast to expand even further. Inflation is now under control, employment is improving and public debt is low, according to the European economic forecast autumn 2014.
"It will abolish credit risk, it will decrease interest rates. That means we'll have a chance for better development," Algirdas Butkevicius, Lithuanian Prime Minister told Euronews on Tuesday.
Over 60 per cent of Lithuania’s exports go to European Union nations, and 20 percent to Russia. More than 40 percent of the population is against the euro while 80 percent believe prices will rise.
In July 2014 the EU commission adopted a decision allowing Lithuania to adopt the euro as its currency.
The decision enlarged the euro area to 19 member states, including all three Baltic states. Lithuania has had over five months to prepare for the changeover.
The Euro-zone is to continue to expand as Poland and the Czech Republic are expected to be the next candidates.
Latvia, a Baltic country, made a successful transition to the euro from January 1, 2014.
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