Eurozone Hopes Dashed

The government said it respected the Commission's assessment but believes that based on economic arguments Lithuania should be admitted to the eurozone. On all counts bar one the country easily meets the Maastricht convergence criteria. The budget deficit was 0.5% of GDP in 2005, compared to a reference value of 3%, and is projected by the Commission at 0.6% this year. The government debt-GDP ratio, at 18.7% at end-2005, is less than one-third of the Maastricht level. The exchange rate is stable and the currency board regime is strong and backed by sufficient official reserves. And at 3.7% in March,

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