Latvia has been given the go-ahead to adopt the euro from next year, the prime minister said on Wednesday, June 5 crowning the Baltic state's emergence from an economic crisis, according to Reuters.
European policymakers hope Latvia's accession as the single currency's 18th member will send a strong signal to investors that, despite its three-year-long sovereign debt crisis, the euro zone is set to grow rather than disintegrate.
Prime Minister Valdis Dombrovskis told a news conference the European Commission said Latvia had met a host of economic conditions to adopt the euro next year.
Dombrovskis said he expected the country's entry into the 17-member euro zone would lead to increased foreign investment and upgrades of its sovereign credit ratings.
European Union finance ministers will formally approve the Commission's decision on July 9. Latvians will start using the euro next year.
Earlier, the European Central Bank issued its own positive recommendation for the Baltic state to join the single currency from next January, although it warned that high foreign deposits in its banks were a risk to financial stability.
The euro, launched as notes and coins on January 1, 2002, is now used by around 330 million people.
