Latvia Applies to Join Eurozone in 2014

Latvia has formally applied to join the euro in 2014, in a move which could see it become the 18th member of the bloc.

Latvia says it has met the five requirements needed to gain entry into the eurozone, which relate to levels of debt, deficit, inflation, long-term interest rates and having a stable peg to the euro.

Latvia's currency, the lat, has been pegged to the euro since 2005 and joining is the next natural step.

Latvia's government has approved a draft law submitted by its Finance Ministry providing for the adoption of the euro as of January 1, 2014.According to the draft legislation, three months before the adoption of the common European currency, and six months after that, all prices in Latvia will be both in euro and in Latvia lats.Once Latvia joins the euro zone on January 1, 2014, there will be a two-week period in which both currencies will be accepted throughout the country, the law stipulates; ATMs in Latvia will cease to distribute lats as of January 1, 2014.

Opinion Polls in Latvia suggest that nearly two-thirds of the population are against joining the single currency.