2005-04-22
Video Conference on Euro Introduction Broadcast from Kaunas to Six Lithuanian Towns
Prof. Vaidievutis Geralavicius, Member of the Board of the Bank of Lithuania, representatives of the Ministry of Finance and SEB Vilniaus bankas spoke at a video conference entitled “Euro Introduction Consequences for the Lithuanian Economy and Citizens” organized by Jean Monnet European Centre of Excellence at the Kaunas University of Technology Institute of Europe on Friday 22 April.
Prof. Geralavicius reviewed Lithuania’s compliance with the nominal Maastricht convergence criteria and noted the asymmetrical effect of the changes in regulated prices on Lithuania’s inflation, which at this moment causes most concerns.
“Increased prices for electricity, gas, and other monopoly goods in 2005 may boost inflation so that Lithuania will not comply with the Maastricht criterion for price stability for the adoption of the euro”, said Prof. Geralavicius.
In his view, this may destabilize the economic situation in the country.
“There is no need to panic. We have all opportunities to meet the price stability criterion. However, in order to adopt the euro on 1 January 2007, institutions regulating prices should make more responsible decisions on the increasing prices for monopoly goods”, he said.
He also presented the Law of the on the Adoption of the Euro, drafted by the experts of the Bank of Lithuania.
“The laconic text of the draft law, its early public presentation and debate allow us to better prepare for the adoption of the euro, identify possible problems, receive expert comments, plan amendments to other legal acts or the adoption of new legal acts.”
He noted that drafting and adoption of the Law on the Adoption of the Euro was only one of the important steps towards the adoption of the euro.
“Quite a few legal acts need to be amended. We have to arrange an appropriate information campaign and technical institutional preparation for operation in the euro area. And that is what we are doing now”, said Prof. Geralavicius.
The video conference lasted for two hours and was broadcast via computer networks from Kaunas Distance Education Study Centre at Kaunas University of Technology to remote classrooms in Vilnius, Panevezys, Kedainiai, Alytus, and Utena. Representatives of municipalities and business participated in the conference together with students and university teachers.