44.9% of Latvian entrepreneurs support Latvia’s implementation of the euro, as against 41.2% of entrepreneurs last December. This is seen in the latest Citadele Index survey, which is organised by the Citadele Bank in partnership with the SKDS public opinion research centre.
Support for the euro rose the most among respondents from large companies which have revenues of more than LVL 1 million a year. Last December 59% of entrepreneurs in that group expressed support for the change in currencies, but during the first quarter of this year, their number rose to 72%.
More likely to support the implementation of the euro, too, are respondents from companies which employ more than 10 people – more than 60% now, as opposed to 50% last December.
Entrepreneurs from companies that export products were distinctly more positive about the euro at the end of last year, but during Q1 2013, the differences between exporting and non-exporting companies were no longer as evident – 48% of respondents from exporting companies and 45% of respondents from companies that do not export anything said that they support the euro.
The percentage of respondents who have a neutral attitude about the euro increased in Q1 – 24.5%, as against 21.6% in December 2012. Only 1.2% did not have any attitude about the matter (2.2% last December).
The percentage of euro-sceptics has declined. 12.8% of company directors said that they doubt the need to introduce the euro in the new survey, while 15.7% said so last December. 16.5% totally do not support the euro (19.3%).
“It may be that the more favourable attitude toward the introduction of the euro in Latvia can be attributed to the stabilisation of the overall situation in the euro zone,” says the chief economist of the Citadele Bank, Zigurds Vaikulis. “Despite unrest on the political front lines in Italy, the financial problems which Cyprus experienced at the beginning of this year, and the long-lasting recession that has occurred in the region, investor views about the solvency of countries on Europe’s periphery have improved stably since last autumn, and the collapse of the euro zone has completely disappeared from people’s agendas and from news headlines. Time has also been of important – after initial denial, entrepreneurs have been able to evaluate the pluses and minuses, thus gradually making peace with the upcoming transfer and accepting it.”
Citadele and SKDS conducted the study in March 2013, surveying the directors of 750 Latvian companies from various sectors and of various sizes.
The Citadele Index
The Citadele Index describes the subjective views of Latvian entrepreneurs 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 companies’ 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 March 2013.
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).