"Lithuania has a strong case for joining the 'euro' next year" - Watson

6.20.00pm BST (GMT +0100) Mon 27th Mar 2006

A high level discussion this afternoon in the Lithuanian Parliament between Members of the Liberal Democrat group in the European Parliament and their counterparts in the Lithuanian Parliament with the Finance Minister and Central Bank Governor revealed a strong consensus that Lithuania was a financially stable and low-risk country that had a good case for joining the 12 Member Eurozone on 1st January 2007.

Graham Watson (UK Liberal Democrat), Liberal group leader in the European Parliament and chairman of the debate drew attention to the Maastricht criteria which had been surpassed to a large extent both by economic experience and by the failure of existing eurozone Member States to stick to their commitments under the Stability and Growth Pact:

"Lithuania complies fully with three of the four criteria for membership of the Single currency. Its marginally higher than permissable inflation rate at the moment is a direct result of faster than average growth over the past few years which can be attributed to the optimistic investment climate following EU accession."

"Lithuania is also vulnerable to energy price rises determined by Russia. Are we prepared to give Russia a veto over Lithuania's membership of the Euro ?" he added.

"I expect the Commission and the European Central Bank to give a fair and honest assessment of Lithuania's long-term financial stability and readiness to join the other members of the eurozone", he added. "I am partly ashamed, but also pleased for Lithuania, that Lithuania is very likely to join the Euro before my own country !"