Euro Helps Latvia Escape Geography's Bear Hug

Euro Helps Latvia Escape Geography's Bear Hug

Why would Latvia want to be part of that?

The official answer has focused on the economic benefits the euro will bring, including more trading partners; a common currency that makes it simpler for citizens and products to cross borders; a reduction in transaction costs; and greater monetary stability. These benefits are expected to boost foreign investment while making it easier for us to export and grow. Quick validation came from Fitch Ratings Inc., which raised Latvia’s long-term credit rating immediately after the EU decision.

But the unstated answer hearkens back to my experiences in America: We are simply tired of being defined by the border we share with Russia, or by our status as a so-called former Soviet state.

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