A Good Move For Lithuania?

[youngmafbog]

Lithuania is to join the Euro at midnight, but will it be congratulations or commiserations?

A study by Lithuania’s central bank found that the changeover would cost 600 million euros, through to 2020 in contributions to the European Union budget, costs to commercial lenders and other expenses, that's a pretty substantial sum in a country with three million people.

Many see it as being more politically stable with the Russian Bear at the door, but would the EU do anything if Putin did flex his muscles (although given his current financial difficulties this seems unlikely)

And what about the richer countries, France, Germany, I wonder what their feeling s will be if it ever needs a bailout?

[ichkeria]

Lithuania is a member of NATO, so that will be her first line of defence, with Russian missiles close by in Kaliningrad, not Kaliningrad.
And the Euro currency will be another line of defence against that bear next door.
Which just goes to show how lucky we are in this country. We talk about the euro as some sort of inconvenience, but for other countries it means something completely different.

[ichkeria]

"not the EU" (fancy confusing the EU with that sad place!)

[Gromit]

Lithuania are a member of NATO so they do not need the EU to protect it.
Strange as it may seem, plenty of countries see economic and trade advantages of being members of the EU. There are several nations smaller than Lithuania that are EU members, and they seem to cope. As we know, membership fees to the EU is calculated as a % of GDP. So, pro rata, they can afford the payments just like we can.

[youngmafbog]

//Lithuania are a member of NATO so they do not need the EU to protect it.//

Yeah right, like that would ever happen. NATO is the most toothless organization ever.

Lithuania does not see it your way Gromit, they are placing a hope that belonging fully to the EU will help protect them.

//As we know, membership fees to the EU is calculated as a % of GDP/

Yep, I wrote : "the changeover " so not just the ongoing cost of membership.

I do agree that for some small nations there are benefits of belonging to a club. I dont agree that we are such a Nation.

[ichkeria]

Lithuania sees membership of the EU and the euro as important economic safeguards, but membership of NATO is what really counts when it comes to the existential threat it faces from Russia
Make no mistake, if the Baltic states were not members of NATO they would be under severe military threat. Calling NATO "toothless" is uncalled for. Luckily it has not been called on to defend a member state after invasion. Equally, ask the residents of Serbia and Kosovo about NATO's "toothlessness".

[Gromit]

Lithuanian Litas have been pegged to the €uro since 2002. So there will be hardly any change for manufacturing trade and exports. Quite a different scenario to Sterling which is a stand alone currency not connected to the €uro.

There is no casre at the moment for replacing £s with €s, but if our currency was pegged to the €uro, it would make complete sense. A good move for Lithuania? - Yes, it probably is.

[atalanta]

How long have you got to change the old currency ? I think I have some somewhere.

[youngmafbog]

// but if our currency was pegged to the €uro, it would make complete sense//

You have to be joking, anyway dont you mean the $uro ?

[Gromit]

No, not th $uro.

// From 1994 to 2002, the litas was pegged to the U.S. dollar at the rate of 4 to 1. The litas has been pegged to the euro at the rate of 3.4528 to 1 since 2002. The euro was expected to replace the litas by January 1, 2007, but persistent high inflation and the economic crisis have delayed Lithuania's euro adoption. On 1 January 2015 the Litas was switched to the Euro at the rate of 3.4528 to 1. //

Unless you were being ironic, ans I missed it.