Latvia to join the euro club

Latvia is ready to become the 18th country using the euro from the start of next year, the European Commission announced yesterday.

The decision is to be formally approved by EU finance ministers in July.

"The commission considers that Latvia fulfils the conditions for the adoption of the euro," the commission, which serves as the EU executive, said in a report on the country's preparations.

Earlier, the European Central Bank issued its own positive recommendation for the Baltic state to join the single currency from January.

The euro, launched as notes and coins on January 1 2002, is now used by about 330million people.

There have been fears in the past three years that a sovereign debt crisis would spread and split up the euro.

With Greece, Portugal, Ireland, Spain and Italy mired in government debt, the currency took a pounding on the markets.

A crisis in tiny Cyprus fuelled speculation that it would become the first EU member to leave the currency.