CNBC, 30.04.2010
MUNICH, April 30 (Reuters) - Estonia's early acceptance into the euro zone is key for the stability of the Baltic region as a whole, Latvian Prime Minister Valdis Dombrovskis said on Friday. "We would like to highlight the importance of Estonia joining the euro zone at the earliest opportunity, for the economic recovery and stability of the whole Baltic region," Dombrovskis said in the text of a speech at the Munich Economic Summit. Estonia is widely expected to become the next, and 17th, country to adopt to euro. The European Central Bank is due to publish a status report on would-be joiners in mid-May that will feature its latest assessment of Estonia's credentials. In his speech, Dombrovskis raised concerns about recent talk of altering entry rules to the single currency bloc. "This is a debate that is worrying us a little bit when we hear different discussions that the Maastricht treaty could be amended or that euro enlargement should be postponed. "It seems that this problem is being addressed from the wrong side because if you look at the Maastricht criteria they are sufficient to ensure macroeconomic stability." Dombrovskis, in power for just over a year and now in charge of a minority government, also said Latvia's economic troubles may not be over. Under a 2008 deal with the International Monetary Fund (IMF) and the European Union for a 7.5 billion euro ($10.2 billion) bailout, Latvia has to keep its public sector budget deficit at 8.5 percent of GDP this year. "Is a double-dip recession still possible? Yes," said Dombrovskis. "In Latvia we still have this risk, especially during this pre-election time when we have a minority government. "As to the situation in Greece... theirs is a different situation (to Latvia's problems). Greece is a member of the euro zone, whereas Latvia is not." (Reporting by Marc Jones, editing by Mike Peacock, John Stonestreet)
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