Latvia has joined the eurozone as of 1st of January 2014, becoming the 18th member of the group of EU states which uses the euro as its currency.
The former Soviet republic on the Baltic Sea recently emerged from the financial crisis to become the EU’s fastest-growing economy.
Correspondents report much skepticism in the country after recent bailouts for existing eurozone members.
But there is also hope that the euro will reduce dependency on Russia.
EU commissioner Olli Rehn said joining the eurozone marked “the completion of Latvia’s journey back to the political and economic heart of our continent, and that is something for all of us to celebrate”.
The government and most business owners also welcomed the single currency, saying it would improve Latvia’s credit rating and attract foreign investors.
However, some opinion polls suggested almost 60% of the population did not want the new currency.
Latvia became the 18th member of the group of EU states which uses the euro as its currency
“It’s a big opportunity for Latvia’s economic development,” PM Valdis Dombrovskis said after symbolically withdrawing a 10-euro note as fireworks led celebrations in the capital Riga after midnight.
The governor of the Latvian central bank, Ilmars Rimsevics, said: “Euro brings stability and certainty, definitely attracting investment, so new jobs, new taxes and so on. So being in the second largest currency union I think will definitely mean more popularity.”
One of those reluctant to give up Latvia’s own currency, the lats, was Zaneta Smirnova.
“I am against the euro,” she told AFP news agency.
“This isn’t a happy day. The lats is ours, the euro isn’t – we should have kept the lats.”
Leonora Timofeyeva, who earns the minimum wage of 200 lats (284 euros; $392) per month tending graves in a village north of the capital Riga, said: “Everyone expects prices will go up in January.”
But pensioner Maiga Majore believed euro adoption could “only be a good thing”.
“To be part of a huge European market is important,” she told AFP.
“All this talk about price rises is just alarmist.”
Alf Vanags, director of the Baltic International Centre for Economic Policy Studies, told Bloomberg news agency he personally did not like giving up the familiar lats but it was an “entirely irrational sentiment”.
Euro adoption was good for Latvia “on balance”, he argued, since it provided a mutual insurance policy that countries could draw on when they got into trouble.
Latvia, with its large ethnic Russian minority, is often seen as having closer economic ties to Russia than its fellow Baltic states Lithuania and Estonia. Russia remains an important export market while its banking system attracts substantial deposits from clients in other ex-Soviet states.
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Maxima Latvia CEO, Gintaras Jasinskas, has lost his job over controversial comments he made after the collapse of a supermarket in Riga.
Gintaras Jasinskas sparked anger by saying: “It is those who feel guilty who resign.”
His remarks came after he was asked whether any company executives would follow PM Valdis Dombrovskis’ lead and step down.
At least 54 people died when the Maxima supermarket collapsed last Thursday.
Asked about the disaster, Gintaras Jasinskas said he felt “responsible, but not guilty”, adding that he could “look people in the eyes”.
Maxima, which has its headquarters in neighboring Lithuania, operates supermarkets in all three Baltic states.
Latvian Foreign Minister Edgars Rinkevics said on Twitter: “Most shocking and arrogant statement by Maxima Latvia CEO refusing to assume any responsibility for [the] tragedy…”
The foreign ministry summoned Lithuania’s ambassador Ricardas Degutis to demand an explanation, according to local media.
Mindaugas Bagdonavicius, Lithuanian chief executive of the Maxima Group, later announced Gintaras Jasinskas had been sacked over Thursday’s remarks.
Maxima Latvia CEO has lost his job over controversial comments he made after the collapse of a supermarket in Riga
“Shareholders have decided to dismiss from his position the chairman of Maxima Latvija Gintaras Jasinskas for his unacceptably expressed opinion at this painful and difficult time for Latvia’s nation,” Reuters quoted Mindaugas Bagdonavicius assaying.
The Latvian prime minister announced his resignation – and thereby the fall of his government – on Wednesday.
“Considering the tragedy and all related circumstances… a new government is needed that has the clear support of parliament,” Valdis Dombrovskis said.
Latvian President Andris Berzins earlier described the disaster as “murder” and called for foreign experts to investigate what had happened.
He was quoted by Baltic news agency Delfi as saying: “I call on all who look to the future to assess their responsibility and act accordingly.”
Andris Berzins is now considering appointing a new government. Elections are not scheduled until October next year.
The collapse was the biggest loss of life since Latvia became independent from the USSR in 1991.
Latvian police have opened a criminal investigation into the cause of Maxima disaster.
Structural experts have suggested that the supermarket building itself may have been badly designed and so not able to support a garden that was being built on the roof.
Substandard construction materials and corruption are other possible lines of inquiry.
Latvia’s Prime Minister Valdis Dombrovskis has resigned following the deadly collapse of Maxima supermarket in Riga.
Valdis Dombrovskis made the announcement at a meeting with President Andris Berzins.
“Considering the tragedy and all related circumstances… a new government is needed that has the clear support of parliament,” Valdis Dombrovskis told reporters.
At least 54 people died when the Maxima supermarket collapsed last Thursday.
President Andris Berzins earlier described the disaster as “murder” and called for foreign experts to investigate what had happened.
Valdis Dombrovskis met the president for an hour and a half on Wednesday, the Baltic news agency Delfi reports.
Latvia’s Prime Minister Valdis Dombrovskis has resigned following the deadly collapse of Maxima supermarket in Riga
President Andris Berzins was quoted by the agency as saying: “I call on all who look to the future to assess their responsibility and act accordingly.”
The prime minister’s spokesman told Agence France-Presse news agency that “the government takes political responsibility for the tragedy”.
Andris Berzins is now considering appointing a new government. Elections are not scheduled until October next year.
The collapse was the biggest loss of life since Latvia became independent from the USSR in 1991.
Police have opened a criminal investigation into the cause of the disaster.
Structural experts have suggested that the supermarket building itself may have been badly designed and so not able to support a garden that was being built on the roof.
After analyzing photos, videos and eyewitness reports, one structural engineer suggested there had been numerous design flaws in the roof’s supporting beams – including not enough bolts.
Substandard construction materials and corruption are other possible lines of inquiry.
Taking office in 2009, Valdis Dombrovskis was charged with making harsh budget cuts and tax increases as well as tough structural reforms to tackle the country’s economic crisis.
He was twice reappointed, and is widely credited with preventing the small Baltic country from going bankrupt.
Latvia is due to join the eurozone on January 1st, becoming the 18th EU state to adopt the single currency.
