The economic role of euro and the principles of the strategy of euro adoption in Lithuania

Abstract

The international role of Euro, advantages and disadvantages of Euro adoption for the countries economy is analyzed. The experience of Germany and Slovenia adopting Euro and consequence of adopting for Estonia is considered. The rezults of investigates of German Statistical Department and Deutsche Bank about the impact of the adoption of Euro on the dynamics of price level in Germany are presented in the article. Although this effect was not significant, however, adoption of Euro influenced the rise of prices in Germany. On the other hand, the inflation process was strengthened by psychological factors. The paper presents the Euro adoption strategy of Lithuania, evaluating the experience of foreign countries that have adopted Euro. The present problems and the perspectives of the European Monetary Union and the Euro are discussed.