Latvia's Plan to Join the Embattled Eurozone

Latvia's search for economic stability and a way to counter Russian influence is at the root of Riga's decision to adopt the euro. Membership in the struggling currency union offers both economic opportunities and serious challenges for the Baltic country. Faced with a slowly recovering economy, a dependence on Russian energy imports and a banking sector that relies heavily on foreign deposits coming mostly from the former Soviet Union, Latvian leaders went against the wishes of their own constituents and finalized plans to join the eurozone at the beginning of 2014. Eurozone membership will boost Latvia's economy, provide a safety net for its financial institutions, deepen integration with Europe and help counterbalance Russian influence, but it will also present the country with new responsibilities and financial burdens as a member of a club whose future is uncertain.