41.2% of Latvia’s entrepreneurs support Latvia’s implementation of the euro currency, and that is a considerably higher percentage than was found last September, when only 34.6% of them did so. These data come from the Citadele Index study for the 4th quarter of 2012, as performed by the Citadele Bank and the SKDS public opinion research centre.
Among those respondents who favour the euro, more than half (59%) represents companies with revenues of more than LVL 1 million a year. Also more likely to support the euro are people from companies which employ more than 10 people (>50%).
Greater support for the euro comes from exporters (57%), as opposed to representatives of companies that only operate in the domestic market (38%).
“Of essence here is the fact that this time people are looking at the replacement of the currency not as the result of economic upheaval, but instead as a carefully considered and long-term project,” says the Citadele Bank’s chief economist, Zigurds Vaikulis. “That makes it possible better to understand and better to prepare for the introduction of the euro. We see that exporters and representatives of large companies are the greatest supporters of the euro, because the new currency will largely make their everyday operations easier.”
The percentage of euro-sceptics has diminished. 15.7% of respondents in the December study for the most part do not support the implementation of the euro (as against 18% in September), while 19.3% in December (22.1% in September) completely reject the idea.
There are still those entrepreneurs in the survey who claim to have a neutral position on the euro – 21.6% in December, as against 20.1% in September 2012. Only 2.2% (5.1% in September) have no opinion about Latvia’s membership in the euro zone.
The study was conducted by Citadele and SKDS in December 2012, surveying 750 managers at companies from various sectors and of various sizes in Latvia.
The Citadele Index
The Citadele Index describes the subjective views of Latvian businesspeople about the economic situation in the country, also asking them to make forecasts for the next six months in area such as overall economic activity in the country and in the relevant business sector. The Citadele Index is based on a survey of 750 company directors in Latvia who represent firms of different sizes and in various sectors. SKDS conducts the survey once every quarter. The last one was conducted in December 2012.
About Citadele Bank
Citadele is a local Latvian bank which offers banking, financial and asset management services. Citadele group is represented in the Latvian market as well as in 9 other countries. Citadele Bank is the only collaboration partner of American Express® in Latvia and Lithuania who is entitled to issue American Express credit cards. In 2012 the bank was recognized as the best governed state-owned enterprise in the Baltic States according to a study conducted by the Baltic Institute of Corporate Governance. Citadele’s vision is to become the most valuable local financial group in the Baltic States. 75% minus one Citadele Bank’s shares are possessed by the State Joint Stock Company Privatization agency on behalf of the Latvian State and the owner of 25% plus one share is the European Bank for Reconstruction and Development (EBRD).