European Central Bank Approves Latvia's Bid To Join the Euro

E.U. finance ministers will make a final decision next month

The European Central Bank said it approves of Latvia's bid to adopt the euro, even as policy makers are concerned that the country will struggle to maintain its economic achievements.

"All in all, Latvia is within the reference values of the convergence criteria," the Frankfurt-based ECB said in its Convergence Report today. "Nevertheless, the longer-term sustainability of its economic convergence is of concern."

Latvia wants to join the euro on Jan. 1, 2014, becoming the 18th member of the currency union. The adoption would crown a recovery from the world's deepest recession in 2009 to the European Union's fastest growth last year. The European Commission will present a separate assessment today, before EU finance ministers will make a final decision on July 9.