IREF - Institute for Research in Economic and Fiscal issues
Fiscal competition and economic freedom
This little county on the shores of the Baltic Sea will become the 18th member of the Eurozone. That is well deserved since Latvia meets all of the Maastricht criteria. Its public debt amount to 40% of its GDP compare to 70% in Germany and 90% in the Eurozone. The maximum public debt rate should be 60% of GDP according to the EU. The Latvian budget deficit is at 2% of GDP, that is 1% lower than the required 3%. The Eurozone average is 4%. Let’s hope that, when entering the Eurozone, Latvia will keep its good standing.