Lithuania becomes 19th member of Eurozone

[European Knight]

http://www.baltictimes.com/media/photos/134874_35717043154a565d74555a_big.jpg

As the clock struck 12 on 1 January 2015 Lithuania officially bid farewell to the litas and adopted the euro.

After a great deal of discussion, uncertainty and waiting, Lithuania has finally fulfilled an objective that it has been pursuing for almost a decade. The goal of introducing the single currency of the European Union was announced when Lithuania joined the EU in 2004. The country had sought to become the first of the Baltic states to adopt the euro in 2007. However, the country stumbled initially as it failed to meet the Maastricht criteria on inflation: its threshold in May 2006 was 2.6 percent, while Lithuania's inflation at the time was at 2.7 percent. As a result, in May 2006, the European Commission gave a negative answer regarding the euro adoption. The European Central Bank (ECB) and the European Council returned the same verdicts.

The introduction of the new currency was delayed due to the global economic crisis. Nonetheless, the idea was never abandoned and preparatory work continued. Consultations over Lithuania's euro membership began in Brussels in March 2013. The Lithuanian Parliament adopted the Law on the Euro Adoption in April 2014, while the plan for the introduction of the new currency was approved in the summer.

http://www.baltictimes.com/lithuania_becomes_19th_member_of_eurozone/

[KawaiiKawaii]

:picard2: Youhou, even more poor countries joining a failed currency.

[European Knight]

:picard2: Youhou, even more poor countries joining a failed currency.

This is right and i will add Euro zone was made to live over the EU Financial ressources because european politicians love to live in luxury

[Rugevit]

Good on them.

[Rugevit]

As I understand Lithuanian currency Litas was first introduced in the 1920s, which is not historic Lithuanian currency from the Grand Duchy of Lithuania era. I was curious why Lithuania would invent a new name seeing the country adhering to some symbols and traditions of the GDL.

[Permafrost]

They should've look up to their neighbours the Poles, who won't enter the eurozone on purpose.

Once shit hits the fan, devaluation won't be a possible option for Lithuanians.

[Permafrost]

As I understand Lithuanian currency Litas was first introduced in the 1920s, which is not historic Lithuanian currency from the Grand Duchy of Lithuania era. I was curious why Lithuania would invent a new name seeing the country adhering to some symbols and traditions of the GDL.

During the time of the commonwealth they used the złoty together with the Poles. So that wasn't a viable option.

Earlier than that, I do not know.

[Willem]

The euro is tanking as of late against the dollar. Now it's almost at 10 year lows vs USD.

Looks like I have to cut back on ordering stuff from the US. :(

[Rugevit]

They should've look up to their neighbours the Poles, who won't enter the eurozone on purpose.

Once shit hits the fan, devaluation won't be a possible option for Lithuanians.

Poland and Lithuania have different economies and populations. Latvia joined Eurozone first. Lithuania announced few years ago it was not ready till 2015. Poland will join sometime in future.

[Vasconcelos]

There are easier ways to commit suicide lads.

[Rugevit]

During the time of the commonwealth they used the złoty together with the Poles. So that wasn't a viable option.

Earlier than that, I do not know.

GDL existed before Polish-Lithuanian Commonwealth, since 1250s. Zloty was not used in Lithuania before PLC creation. Even after PLC , both countries used their own currencies for quite some time.

[Permafrost]

Poland and Lithuania have different economies and populations. Latvia joined Eurozone first. Lithuania announced few years ago it was not ready till 2015. Poland will join sometime in future.

http://www.euractiv.com/sections/euro-finance/poland-no-rush-join-euro-wants-entry-own-terms-302112


Poland could join the euro zone faster if the requirement for the zloty to be in the ERM-2 exchange rate mechanism were waived, an adviser to Prime Minister Donald Tusk was quoted as saying on Tuesday (13 May).

[KawaiiKawaii]

There are easier ways to commit suicide lads.

Maybe they're masochists and want to suffer. Poor Europe...

[Permafrost]

GDL existed before Polish-Lithuanian Commonwealth, since 1250s.

I am aware of it, and did not state otherwise


Zloty was not used in Lithuania before PLC creation.

Again, I did not state otherwise.

[Rugevit]

I am aware of it, and did not state otherwise



Again, I did not state otherwise.

That's what you stated : During the time of the commonwealth they used the złoty together with the Poles. So that wasn't a viable option.
which is a pointless comment, as it was not the only option.

[Willem]

I'm noticing a pattern:

http://i.imgur.com/ULDDoMA.png

[Permafrost]

That's what you stated : During the time of the commonwealth they used the złoty together with the Poles. So that wasn't a viable option.
which is a pointless comment, as it was not the only option.

Heh, at least bother to read properly between the lines.

Well then, if you want to look at it that way, even before złoty, foreign currencies in Lithuania were common, such as those from Prague


While in the 15th century the GDL minted coin of its own, denarii, the rarity of these show the prevalence of foreign currency, Prague groats in the country's market.

So even before the Polish currency, the Lithuanian currencies were either foreign or something quite generic. Which more than warranted the creation of a new national currency at the beginning of the 20th century.

There.

[Hithaeglir]

Good for them i guess.They have made great progress.

[Rugevit]

Heh, at least bother to read properly between the lines.

Heh, at least bother to admit you had no clue what you were talking about but had an urge to comment on the subject.




Well then, if you want to look at it that way, even before złoty, foreign currencies in Lithuania were common, such as those from Prague

So even before the Polish currency, the Lithuanian currencies were either foreign or something quite generic. Which more than warranted the creation of a new national currency at the beginning of the 20th century.

There.

Now, you've been doing some googling, when you should have done it before commenting.

[Permafrost]

Heh, at least bother to admit you have no clue what you talking about but had an urge to comment on the subject.

Not quite, were you a longstanding Apricity member you'd see more often my posts in threads pertaining to the Baltic states, it's something of an interest of mine, although I admit so far it has been more in the linguistic sphere.

You are obviously free to infer I'm a clueless person, that is your own prerogative.


Now, you've been doing some googling, when you should have done it before commenting.

Sure thing. Always remember I'm willing to do googling in your stead if you don't feel like it.

[Rugevit]

Not quite, were you a longstanding Apricity member you'd see more often my posts in threads pertaining to the Baltic states, it's something of an interest of mine, although I admit so far it has been more in the linguistic sphere.


You are obviously free to infer I'm a clueless person, that is your own prerogative.

You may have interests in topics related to the Baltic states but that does not change the fact you had little knowledge on historic monetary system of Lithuania. Who the heck would refer to zloty as historic currency of Lithuania, despite it was used in PLC? There was no need to be aggressive either.




Sure thing. Always remember I'm willing to do googling in your stead if you don't feel like it.

Google will save you from embarrassing moments.

[Empecinado]

Enjoy. With the euro, prices rise at a much higher rate than wages, and the result is a loss of purchasing power.:

http://images.teinteresa.es/dinero/Comparativa-pesetaseuros_TINIMA20111226_0573_19.jpg

[Kamal900]

I bet the Scandinavians are laughing their asses off about this, and good for them in not joining the Euro zone.

[Porpolita]

Lithuania is now using Monopoly money? Remember to take 200 when you pass "go"

[KawaiiKawaii]

Lithuania is now using Monopoly money? Remember to take 200 when you pass "go"

It's sad that the case prison is not used anymore. All the politicians surely belong there.

[Raven_]

Enjoy. With the euro, prices rise at a much higher rate than wages, and the result is a loss of purchasing power.:

http://images.teinteresa.es/dinero/Comparativa-pesetaseuros_TINIMA20111226_0573_19.jpg


Prices have risen mainly because sellers prefer to round up values in their own favor. Sharpness of prices' rise varied from country to country and can not be written off solely to introduction of euro as there were other economical-financial circumstances.

"Experience in other countries indicates that, as a result of the changeover, prices increased by no more than 0.2-0.3%. In none of the five new EU member states where the euro has been introduced any significant increase in prices has taken place."
http://www.eiro.lv/en/media/frequently-asked-questions/prices-after-changover

[Willem]

I bet the Scandinavians are laughing their asses off about this, and good for them in not joining the Euro zone.

Their currencies are either officially pegged or de facto pegged by the forex market.

Even the British pound more or less tracks the euro in forex.

[KawaiiKawaii]

Their currencies are either officially pegged or de facto pegged by the forex market.

Even the British pound more or less tracks the euro in forex.

Even our Frank is somewhat pegged to the Euro. The BNS decided that it cannot go lower than 1.2 CHF for 1 €.

[Willem]

Even our Frank is somewhat pegged to the Euro. The BNS decided that it cannot go lower than 1.2 CHF for 1 €.

The Swiss Franc was behaving fairly independent (unlike GBP and Scando currencies) until 2011-2012 when they decided to peg it to the euro because it was becoming too deflationary.

[Raven_]

As I understand Lithuanian currency Litas was first introduced in the 1920s, which is not historic Lithuanian currency from the Grand Duchy of Lithuania era. I was curious why Lithuania would invent a new name seeing the country adhering to some symbols and traditions of the GDL.

After WW1 Lithuanian government intended to use ostmarks (which Germans introduced during occupation) as their country's currency. It was named auksinas which means the same as zloty (golden). Auksinas was devalued because extreme inflation in Germany had a very negative impact on Lithuanian economy as ostmarks were pegged to German mark (in ratio 1:1).

[Prisoner Of Ice]

Let the diversity gangbang begin!

[Rugevit]

After WW1 Lithuanian government intended to use ostmarks (which Germans introduced during occupation) as their country's currency. It was named auksinas which means the same as zloty (golden). Auksinas was devalued because extreme inflation in Germany had a very negative impact on Lithuanian economy as ostmarks were pegged to German mark (in ratio 1:1).

In the 16th century, there were several names for currency depending on value of a coin.

Denarius had smallest value. The name came from Latin.
Grosh originated in Prague. Today, Grosh is money in Ukrainian and Belarusian literally. The second Lithuanian statut of 1566 listed the cost of some livestock in groshes.
Lithuanian Talers contained 28-30g of silver. Talers were a pan European currency. American dollar is derived from Thaler/Taler. Many people say Lithuanian Talers were historic currency of the GDL. It certainly featured in many written sources.
Lithuanian ducats . Ducats were also used in some European countries.