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Economist Gitanas Nausėda: Lithuania's euro entry may depend on political factors rather than economic

Gitanas Nausėda
Andriaus Ufarto/BFL nuotr. / Gitanas Nausėda
Šaltinis: BNS

Euro adoption in Lithuania may depend more on political factors than on economic reasons, Gitanas Nausėda, an adviser to the president of SEB Bankas, believes.

"I think that political tensions are more important than economic ones, because I do not see any strong economic reasons for not introducing the euro. One of my versions is that if the euro is introduced on January 1, 2015, and the changeover is not very successful, with the price rounding effect, organizational difficulties and further price hikes, that will set an unfavorable tone for the parties ahead of the 2016 general elections," he said.

Nausėda said that this had not been given much thought until recently.

"(Politicians) are starting to think about the next elections to the Seimas. Although none of them, even if pressed to the wall with a gun to their head, will admit that, but I think that their rhetoric has been obviously cooling recently. Perhaps only our prime minister remains enthusiastic about euro adoption," he said.

Lithuania aims to join the euro zone on January 1, 2015.

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