RIGA: Latvia has met the inflation goal for euro entry and should qualify to adopt the currency in 2014 when European Union officials examine its economic performance early next year, the Finance Ministry said on Tuesday.
Targets for euro adoption include budget deficit and debt ratios as well as an inflation rate no more than 1.5 percentage points above the average of the three lowest EU rates.
EU data released on Tuesday put that target at 2.94 percent, the Finance Ministry said in a statement, while the relevant rate in Latvia was 2.90 percent.
"According to Finance Ministry forecasts, Latvia will fulfil the Maastricht criteria also next spring when Latvia's inflation indicator will be measured," Finance Minister Andris Vilks said in a statement.
Despite the sovereign debt crisis that has spread through the euro zone's weaker economies over the past 3 years, Latvia sees the euro as a more stable currency than its lat.
Public opinion is firmly opposed to euro entry, but the government does not intend to hold a referendum on the issue.
The Baltic nation endured tax hikes and spending cuts when the global financial crisis hit to overcome debt problems with the goal of adopting the euro.
The centre-right government of Prime Minister Valdis Dombrovskis this year cut the value added tax rate to 21 percent from 22 percent as part of efforts to bring inflation within the euro criteria.
Northern Baltic neighbour Estonia adopted the euro in 2011.
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