It is not safe from the crisis, but continues to go further. From Thursday, the euro is to also circular in Lithuania, a total of 19 countries, becoming the single currency of the three Baltic Republics. By trawling, Carlos Costa no longer vote at all meetings of the ECB -. As his colleagues governors
In the middle of the sovereign debt storm and existential crisis still survives, the euro reached the Baltic in 2011. He began by Estonia; two years later came to Latvia and from this Thursday, the 1st day of 2015 begins to take place the litas in Lithuania. The strongest symbol of European integration is the well being common to the three Baltic Republics, all former members of the former Soviet Union.
For these States, joining the euro is fundamentally the corollary of that led them to enter in 2004 in the European Union and NATO: consolidate the independence, only regained in 1991, from Moscow who returned to show their darker side and feared with the intervention in Ukraine and the annexation of Crimea
With its approximately three million inhabitants, Lithuania is the only Baltic country that has no direct border with Russia, even though its territory is contiguous to the Russian enclave of Kaliningrad and more than 5% of its population is ethnic Russian, and Polish the most significant minority (about 7%).
As in neighboring countries, the Lithuanians are not exactly excited about currency trading. A survey published in November by the central bank shows that only 53% of the population is in favor of the euro, mainly due to fear of rising prices, an observed phenomenon in many countries that joined the euro area.
In the business world, the transition does not scare. The President of the Viciunai Group, one of the largest producers of fish derived from Europe, says “will not change anything because the litas is strongly pegged to the euro. Invoices will simply be different and smaller numbers in transactions”, reports Euronews . To Lithuanian Prime Minister will also greater financial stability. “There is an understanding that we must work better with lower risk markets, taking advantage of a stable currency like the euro in Lithuania, perhaps with lower profits but with a long-term stability for the business,” says Algirdas Butkevicius.
Lithuania has its local currency – the litas – pegged to the euro since 2002, hoped to adopt the euro in 2007 but failed to meet the criterion of inflation, one of the five that make up the so-called examination of Maastricht. The country, like all the Baltic States, suffered a major recession in 2009, following the global financial crisis, but is now one of the Member States of the EU with the highest growth rate.
Lithuania Entry is Carlos Costa lose permanent vote on the ECB
raise the number of euro countries above 18, the integration of Lithuania will also cause very significant changes in voting rules within the European Central Bank, which now obey a rotating system which was decided in 2002.
The six members of the executive council of the ECB (where sit, for example, Mario Draghi and Vítor Constâncio) continue to maintain a permanent voting right. Already now 19 governors of the national central banks are divided into two groups according to the size of their country’s economy, and see their voting rights rotate.
Carlos Costa, on behalf of Portugal, is the group that, on balance, each governor shall be entitled to vote on 78.5% of occasions. Have the governors of the larger countries like Germany, France or Spain, will vote in 80% of the time.
The model will now be used by the ECB is similar to what the Federal Reserve uses to manage the votes of governors of American States. The ECB also decided to space the meetings which can make decisions on interest rates, which are now to be held every six weeks instead of monthly. The new year brings yet another novelty:. Also like the Federal Reserve, the ECB will move to publish the minutes of its meetings
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