More inflaction, no Euro

euro

Inflaction will remain the main obstacle to adopt euro in 2014.

This is the results of the reports that all the government analyst did in the last two month. According to the premier Andrius Kubilius,  the consumer-price growth may slow to 2.5 percent this year from 4.1 percent in 2011, Kubilius said in an interview in Brussels today, reiterating estimates by the Finance Ministry.

The Baltic nation’s government plans to cut the budget deficit to 3 percent of gross domestic product this year to qualify to join the currency union. Lithuania’s attempt to adopt the euro at the start of 2007 failed after inflation exceeded the threshold by 0.1 percentage point.

The goal of euro adoption is unlikely to be challenged in the general election scheduled for October, Kubilius said.

Source: Bloomberg.com