Euro: Let the Baltic republics in now

The recent development in the three Baltic republics Estonia, Latvia and Lithuania must be dealt with resolutely. The best way is for the EU to agree on a supported fast track into the Euro zone on favorable terms. If there is a will there is a way.

Right now, the development is the worst possible. On the one hand these countries are denied the option of a free float. On the other hand, they are not let into the Euro-cooperation.

A coalition led by Sweden is looking after their self- interest by forcing a fixed currency regime, especially in the case of Latvia. This regime is paid for by citizens and businesses. It is the heaviest fine for the financial crisis anywhere in Europe. Faced with the same choices in the past, Sweden have always shied away and eased her own burden by a policy of devaluation. Sweden, who lets her own currency float freely, is particularly eager to ask Latvians pay the price. The economic logic is transparent enough, but morally this is highly questionable.

Floating currencies would ease the burdens. Sweden has proven that the strategy works. At the same time, the best long term solution for all Baltic Sea States, including Sweden, Latvia, Estonia and Lithuania is to be part of the Euro-zone.

The large Euro-countries has allowed themselves exceptions form the agreed frameworks in the past and the present. Yet there is no willingness to allow neighbors in crisis to do the same. Again the moral of this is clearly doubtful even if the economic rational is easily understood.

The EU should let the three Baltic republics in immediately by designing a trustworthy plan with financial backing aiming at complete accession 2012.

Dr. Per Tryding, BCCA secretary general