Council of the European Union : Press statement by Herman Van Rompuy following the meeting with Prime Minster of Latvia Valdis Dombrovskis

EUROPEAN COUNCIL THE PRESIDENT
Riga, 10 January 2014
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Press statement by Herman Van Rompuy following the meeting with Prime Minster of Latvia Valdis Dombrovskis

It is a pleasure to be back in Riga for this symbolic and historic moment for Latvia - and for the European Union. I warmly welcome Latvia and the Latvian citizens to the euro area. And I congratulate Latvia and Europe for another important step forward in our common European project.
The introduction of the euro on first of January 2014 has only been possible thanks to the determined efforts by Prime Minister Dombrovskis, his government and the Latvian people. The Prime Minister's sense of determination, responsibility and preparation has been reconfirmed by the smooth transition from the lats to the euro the last days.
The euro brings significant economic as well as political benefits. Politically, the euro is at the core of European integration. For Latvia, in my eyes, it is another important step forward since Latvia regained independence and joined the OSCE in 1991, the EU in 2004, NATO in 2006 - and now the euro area in 2014. It anchors Latvia even more solidly in the heart of Europe - where it belongs and always should have belonged.
The economic benefits are immediately felt when travelling. Using the single currency increases price transparency, eliminates currency exchange costs and strengthens the single market by facilitating trade and investment. You only need to ask your neighbouring Estonians about the benefits. In addition, the euro area also provides better protection from external economic shocks, such as turbulence in the currency markets.

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Latvia is joining a stronger euro area than a few years ago, strengthened by new governance rules and solid crisis tools. But of course, adopting the euro also carries obligations like aligning domestic economic policies with the requirements of the euro
area. This is key to enjoy the benefits of the single currency and to contribute to the smooth functioning of the euro area.
Latvia's adoption of the single currency shows the world the vitality of the euro. Only twelve years after the first introduction of euro banknotes and coins, the euro zone now has eighteen members and 333 million Europeans sharing the same currency. And I expect Lithuania to join already next year as the 19th member and completing the Baltic euro accession. In addition, the euro is the second most traded currency in the world and alongside the US dollar it is the most important reserve currency. Not bad for a 12 year
old!
Latvia adopting the euro is a strong expression of trust in the euro area and one of the increasingly many and increasingly solid signs that we are finally coming out of the economic crisis in Europe. Growth is returning, exports continue to increase and
confidence is slowly but surely returning. Unemployment in the European Union remains a huge concern but has stopped rising in many countries and should - like in Latvia - go down. Ireland and Spain left their support programmes. And in December we reached agreement on the banking union - a key element to improve the architecture of our Economic and Monetary Union and a key element to prevent future banking crises in Europe. This shows that all the dedicated and courageous efforts, all the sacrifices made,
by Latvia and across Europe, are bearing fruit. Still, the situation leaves no room for complacency and we need to continue our efforts to support the recovery and create conditions for more rapid, stronger and sustainable job-creation and growth.
Being here I take the opportunity to also pay tribute to the people of Ukraine wanting an Association Agreement with the European Union. We cannot forget their longing for a modern, independent and democratic Ukraine. We remain on their side. Nobody can prevent them to see their dreams realised one day.
So to conclude. With Latvia on board, it is with greater confidence that we now enter a new year - together in the euro area.
Paldies.

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