BNS:Lithuanian PM backs IMF's call for eastern EU countries to adopt euro
Updated 2009-04-07
VILNIUS, Apr 07, BNS - Lithuanian Prime Minister Andrius Kubilius backs the International Monetary Fund's proposal that EU member states in central and eastern Europe should consider abandoning their national currencies in favor of the euro even without formally joining the eurozone.
"For Lithuania, a faster introduction of the euro would be very beneficial indeed, because that would solve a large part of those financial crisis problems we are faced with today," Kubilius told Lithuanian Radio on Tuesday.
The prime minister added that he hoped that discussions with the major eurozone members on a partial adoption of the euro would continue.
In a confidential report cited by the Financial Times, the IMF says that the eurozone could relax its entry rules so that countries could join as "quasi-members," without seats on the European Central Bank (ECB) board.
"The discussion about euro adoption in central Europe in one or another way, or a partial adoption, as advocated by the IMF, is ongoing and we expect that rational and effective solutions will be reached," said Kubilius.
However, according to the Financial Times, eurozone members and the ECB oppose the IMF's initiative.
