By Judith Ugwumadu | 25 July 2014

Lithuania will adopt the euro on January 1 next year, the last of the Baltic countries to do so, taking the number of nations in the single currency zone to 19, European Union leaders have announced. 

The European Council also announced that the conversion rate has been set at 3.45280 Lithuanian litas to the euro.

Sandro Gozi, President of the Council of the EU, said: ‘The entry of Lithuania into the euro family is not only a crucial event for this partner country, but it is of great importance for the whole eurozone.’

On June 20, the euro area member states adopted a recommendation in favour of Lithuania joining the currency union, following reports from the commission and the European Central Bank. A week later, the EU Council welcomed the fact that Lithuania had met the criteria for adopting the euro, namely price stability, the government’s budgetary position, exchange rate stability and long-term interest rates.

Lithuanian Prime Minister Algirdas Butkevičius said: ‘Lithuania’s consistent efforts have paid off: today the eurozone has opened the door for us.

‘The adoption of the euro has been Lithuania’s strategic step, well thought-out economically and politically, to foster national economic growth.

‘Lithuania's accession to the single European currency will strengthen the EU’s economic and monetary Union. Deeper euro integration means greater security as well.’

Lithuania joined the EU in 2004 and under EU treaties all new members must adopt the euro eventually although it can take years to meet the tough requirements.

Latvia joined the eurozone at the start of this year and Estonia switched to the currency in 2011.