Analytics, Direct Speech, EU – Baltic States, Financial Services, Latvia, Society

Asked about various political forces opposing the adoption of the euro, Ijabs outlined several reasons for this, writes LETA.

Ijabs explained that Latvia's political life is rather confronting. Many seats in the current parliament are occupied by parties that do not shy away from populism. The introduction of the euro is a beneficial issue for populism due to low public support for the euro. Moreover, euroscepticism has always been strong in Latvia. To a large extent, individual politicians are responsible for this, constantly criticizing the European Union and blaming Brussels for limiting Latvia's rights, said the expert.

In addition, the euro is currently not in the best shape and discussions on the currency's future are held in Europe and worldwide, creating a negative background, said Ijabs.

Ijabs also admitted that it is hard to explain the recent activities of VL-TB/LNNK, which resemble begging. It is clear that the nationalist alliance will not want to be the one to derail Latvia's accession to the eurozone. The expert predicted that VL-TB/LNNK will attempt to benefit from its stance, similarly to demographic matters in the recent past.