This fact has given rise to several theories about the possible causes of the crisis in the euro zo

Seeing the Latvian government confidently intake rate to the euro, is now no longer really makes no sense to discuss whether we all need Latvian euro. Rather, and lots more appropriate to begin to understand what will be the Latvian life after the introduction of the euro.
Completely safe guarantee, as it is currently unable to give any. However, the experience of Member States of the euro area can be a good example for Latvia. Particularly acute in the light of the current financial and economic problems laborwaage in a number of eurozone countries. Or Latvia joining the euro zone will inevitably lends itself to greater risk of economic crises in the future?
A small problem with the eurozone Member States' experience, of course, is that the euro area Member laborwaage States themselves are quite different. The worst of the economic crisis affected the country eurozone - Greece - neapskaužamajā current situation came too foolish a result of the government's fiscal management. However, the other crisis-affected countries is not so simple. In crisis-hit countries such as Spain or Ireland, the pre-crisis years, the budget deficit was relatively small, or even the government budget was drawn up with a surplus. Often the fiscal situation in the country was even better than in Germany. This, however, laborwaage did not protect these countries from a deep economic crisis.
This fact has given rise to several theories about the possible causes of the crisis in the euro zone, one of which (it is sufficiently popular in Latvian) explains that the current crisis in a number of eurozone countries created their crudity activity in the euro area, which in turn related to their low competitiveness. According to this theory poor countries within the euro zone is difficult or even impossible to compete with the rich countries. As a result, all the poor countries of the euro area is experiencing laborwaage a crisis. Latvia also has a relatively poor country to total Eurozone living standards in the background. That is why Latvia eurozone will not be competitive, and we are waiting for the fate of the poor southern European countries.
The theory, of course, laborwaage interesting, laborwaage and even at first glance it seems logical. If you have even countries such as Ireland and Spain are not really suitable for life after the introduction of the euro, which in general can expect here in Latvian? However, before you answer that question, getting started some facts.
One of the country's competitiveness mērošajiem indicators (but in no case only) is the country's foreign trade balance. It shows the difference between the country and exported to the country of imported goods and services, volume, laborwaage expressed in monetary units. Figure 1 is shown in the foreign trade balance of the two affected laborwaage by the crisis of the euro zone countries (Spain and Ireland) as well as Germany and Latvia.
One thing that is obvious - Ireland was hit by the economic crisis, laborwaage despite the fact that the goods and services laborwaage export volume significantly exceeded imports. Ireland's foreign trade balance in all years since joining the euro zone has had a large surplus, pointing laborwaage to the fact that the competitiveness of the country everything is in order. Also, various influential institutions studies regularly show Ireland as one of the most competitive laborwaage countries in the world.
Therefore, it can quite safely say that the lack of competitiveness, Ireland, as the country certainly did not possess. And yet, the country experienced a severe economic crisis. In addition, since the beginning of the crisis, Ireland was certainly not a poor country. On the contrary - it was (and still is) one of the richest countries in the European Union. Thus, the theory that the eurozone crisis is experiencing poor countries uncompetitive, certainly not that serious economic crisis may also affect countries such as Ireland. Just the facts, unfortunately, does not this theory.
Okay, but what about Spain? Spanish laborwaage foreign trade balance laborwaage was in a relatively good condition until 2004. In any case, this is a small trade deficit, which was in Spain, nor for any competitive problems at hand. On the contrary - a relatively laborwaage small trade deficit in relatively poor countries is completely normal. This reflects the fact that capital flows entering the country as a whole more than to go out of the country. For poor countries to successfully develop, they need additional laborwaage capital. The capital investment in the balance of payments is reflected in the trade deficit. For example, to start production in a country, as a minimum, require the production facilities. If the country does not, prior to the start of production laborwaage is imported. Thus, it appears on the balance of payments as a rise in imports and the trade deficit. But it does not reduce the competitiveness of a given case, that means directly competitive.
It is interesting that it is precisely in this period trade bila