European Parliament Approves Latvia's Entry Into Euro Zone
Created: 2013-07-04 11:18 EST
The European Parliament voted Wednesday to approve the entry of Latvia into the euro zone, endorsing it as the 18th country to adopt the euro starting January 2014.
The European Parliament determined that Latvia has met all the requirements for joining.
Martin Schulz says as a member of the euro zone, Latvia was going to provide a much better investment environment for potential investors.
The switch would eliminate the exchange rate risk as well as offer more transparent prices for enterprises and consumers.
Meanwhile, the president also reminded that Latvia was still confronted with all kinds of challenges such as the high unemployment rate and the huge income gap.
And the country also needed to solve the issues standing between the prudent banking supervision and the lack of communication with its people.
Latvia, an EU member since 2004, has gone through a series of serious financial problems such as the collapse of the property market.
It launched a sweeping overhaul of the national economy by curtailing government expenditure and reforming the banking system after it applied for joining the euro zone.