2013-11-26
Latest forecasts for Lithuania’s compliance with the Maastricht criteria — on the Bank of Lithuania website
The Bank of Lithuania is starting to publish on its website the latest forecasts for Lithuania’s possibilities to comply with the Maastricht criteria, important for the adoption of the euro, next spring.
“This is a possibility for the population and businesses to feel the pulse of the national economy — the data will be constantly updated, thus the public will be able to observe how the country is succeeding in compliance with the euro adoption criteria,” says Rūta Rodzko, Director of the Economics and Financial Stability Service of the Bank of Lithuania.
R. Rodzko is heading the Lithuania’s Compliance with Convergence Criteria Monitoring Working Group, which prepares quarterly reports in projecting Lithuania’s compliance with economic convergence criteria, identifying the threats of non-compliance with the criteria and submitting proposals for the measures to mitigate them.
As Lithuania has set itself a target to adopt the euro as of 2015, the country’s preparedness will be assessed next spring according to the following five convergence (Maastricht) criteria: price stability, general government deficit, government debt, exchange rate stability and long-term interest rate stability. Moreover, the country must comply with these criteria on a sustainable basis.
According to the Bank of Lithuania forecasts, next spring, when the country’s preparedness for the adoption of the euro will be assessed, inflation in Lithuania will stand at 1 per cent and will not exceed the projected Maastricht criteria — 1.9 per cent. Lithuania is also likely to meet the general government debt, exchange rate stability and long-term interest rate criteria.
Major concerns stem from the general government deficit ratio, which is projected to be 2.9 per cent in 2013, close to the threshold of 3 per cent.
For constant updates of the Maastricht criteria values, as well as Lithuania’s respective indicators and their projections, visit the Bank of Lithuania website.