''The European Commission and the European
Central Bank have given Latvia the green light to join the euro zone in
2014. The Baltic state will follow neighbouring Estonia into the bloc.
Euro zone leaders will cheer at the latest adhesion, which they will see
as a symbolic victory over the permanent euro sceptics. In truth, it
won't change much of the monetary union's current woes. It will,
however, help Latvia.
The formal go-ahead is well-deserved. The
country meets the "convergence criteria" for membership, including price
and exchange-rate stability. It is also in good fiscal shape. At 40.7
percent, its debt-to-GDP ratio is less than half the euro zone average
and its 1.2 percent of GDP budget deficit is well below the 3 percent
theoretical ceiling. Riga received a 7.5 billion euro bailout in 2008,
but it has repaid its loans - some even before their due date..''
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