In the Final Master's Degree Work there are evaluated Lithuania and Slovenia's inflations, government's annual budget deficit and gross debts, long-term government stock interest rate and national currency stability level conformity to the convergence criteria in 2000-2008. The first part of the paper explores theoretical aspects of inflation, government's annual budget deficit and gross debts, long-term government stock interest rate and participation of the countries in ERM II – conceptions of every of those criteria are presented, the reasons and outcomes of the appearance are being analysed, factors causing one or another occurrence are being examined, solving methods for the problems related to these macroeconomical indexes are being introduced. In the third part of the work Lithuania and Slovenia's inflation, long-term government's annual budget deficit and gross debts, long-term government stock interest rate and national currency stability level dynamics in 2000-2008 are researched and the factors and reasons that caused this kind of change are identified. Also, perspectives of Lithuania in the future to introduce the common EU currency – euro are being estimated and benefit of the Slovenia membership in the euro zone to the country is being discussed.
In the Final Master's Degree Work there are evaluated Lithuania and Slovenia's inflations, government's annual budget deficit and gross debts, long-term government stock interest rate and national currency stability level conformity to the convergence criteria in 2000-2008. The first part of the paper explores theoretical aspects of inflation, government's annual budget deficit and gross debts, long-term government stock interest rate and participation of the countries in ERM II – conceptions of every of those criteria are presented, the reasons and outcomes of the appearance are being analysed, factors causing one or another occurrence are being examined, solving methods for the problems related to these macroeconomical indexes are being introduced. In the third part of the work Lithuania and Slovenia's inflation, long-term government's annual budget deficit and gross debts, long-term government stock interest rate and national currency stability level dynamics in 2000-2008 are researched and the factors and reasons that caused this kind of change are identified. Also, perspectives of Lithuania in the future to introduce the common EU currency – euro are being estimated and benefit of the Slovenia membership in the euro zone to the country is being discussed.
In recent years, Lithuania has been perfectly satisfying the convergence criteria for the national debt and the budget deficit, i.e. has not exceeded the settled 60 percent and 3 percent respectively of the reference values of the Maastricht Agreement. On the other hand, recently it has been more and more frequently noticed in the economist forums that the aspects of the country's borrowing are sufficiently problematic and an increase in the fiscal deficit seems inevitable at an early date, thus actually it will not be easy to shape fiscal policy. Taking into consideration the defined problematic arguments in terms of the state financial stability, it is relevant to analyse the tendencies of meeting the above mentioned criteria and the essential factors influencing them, to evaluate involvement with other macroeconomical indices which would help to disclose problematic aspects, possible ways of problem solution and to avoid the risk of not repeatedly becoming a full member of EVS in future. In order to investigate stability of Lithuanian economic convergence in the context of the fiscal provisions of the Maastricht Agreement, the article presents a conception of convergence and outlines possible ways of its cognizance and evaluation in terms of macroeconomical theory and the Maastricht Agreement. The analysis of the debt of the government sector and the budget deficit as well as of the tendencies of variation in percent indices compared to the GDP revealed the characteristics of the situation and the spread of the latter, cohesion was evaluated by applying regression analysis. [.].
In recent years, Lithuania has been perfectly satisfying the convergence criteria for the national debt and the budget deficit, i.e. has not exceeded the settled 60 percent and 3 percent respectively of the reference values of the Maastricht Agreement. On the other hand, recently it has been more and more frequently noticed in the economist forums that the aspects of the country's borrowing are sufficiently problematic and an increase in the fiscal deficit seems inevitable at an early date, thus actually it will not be easy to shape fiscal policy. Taking into consideration the defined problematic arguments in terms of the state financial stability, it is relevant to analyse the tendencies of meeting the above mentioned criteria and the essential factors influencing them, to evaluate involvement with other macroeconomical indices which would help to disclose problematic aspects, possible ways of problem solution and to avoid the risk of not repeatedly becoming a full member of EVS in future. In order to investigate stability of Lithuanian economic convergence in the context of the fiscal provisions of the Maastricht Agreement, the article presents a conception of convergence and outlines possible ways of its cognizance and evaluation in terms of macroeconomical theory and the Maastricht Agreement. The analysis of the debt of the government sector and the budget deficit as well as of the tendencies of variation in percent indices compared to the GDP revealed the characteristics of the situation and the spread of the latter, cohesion was evaluated by applying regression analysis. [.].
Subject of the final master's thesis is topical, because development and functioning of the common European Union monetary policy is especially important step in European integration, opening the way for final political approach of the member states. Thus a detailed study of this sphere of the European Union politics is necessary striving to cognize possibilities and challenges of the future integration processes. The last expansion in the Euro-area happened on 1 January 2009, when the euro was introduced in Slovakia. A number of the EU member states that use the currency of the European Union increased up to sixteen. Though Estonia still hasn't reached complete integration in the EMU process, yet in May 2010 European Commission officially suggested Estonia to join the Euro-area from 1 January 2011. Objective of the research is to assess Slovakia's and Estonia's economic and legal convergence. Considering the objective of the research and set tasks, stages of development of the Economic and Monetary Union in Europe are covered in the work in theoretical aspect, advantages and disadvantages of participation in the Economic and Monetary Union are highlighted; policy of the European Central Bank and other institutions of the European Union in the process of euro-area expansion is analysed; conformity of Slovakia's and Estonia's macroeconomic indices to criteria of Maastricht convergence and harmonization of the European Union Law and national law of the mentioned countries and estimation of Slovakia's benefits being in euro-area is presented as well as Estonia's preparation to join the Economic and Monetary Union. Performed dynamic analysis of Slovakia and Estonia's inflation, government budget deficit and gross debt, long-term interest rate and national currency stability level as well as analysis of the documents of the European Union, Slovakia and Estonia has revealed that Slovakia's convergence criteria have stabilized just after joining the EU and particular attention was paid to inflation reduction process. In convergence reports of 2008 published by the European Central Bank and European Commission Slovakia satisfied economic convergence criteria at least during the short period, however price stability and fiscal development durability in the long-term perspective remained unvalued. Situation in 2009 is a matter of great concern not only because of the price increase tendencies but also through unreliable management of public finances. Situation in Estonia is a bit different; however stabilisation of convergence criteria is also noticeable after joining the EU. While Slovakia has been trying to stabilize and retain convergence criteria keeping within control limits, Estonian Government spared a lot of attention towards securing stability of public finances, and this is proved by the fact that fiscal surplus and amount of gross debt of the government sector having prevailed during the period 2003 – 2008 haven't exceeded the limit of 8 per cent of GDP. However economic crisis that broke in 2008 caused overheat of Estonian economics. Inflation became uncontrolled and reached 10,6 per cent, deficit of government sector increased, simultaneously increasing the gross debt of the government sector. Thus Estonia's convergence in the long-term perspective is estimated as nondurable through macroeconomic imbalance likely to recur in future. The most important legal standards that required harmonization in Slovakia and Estonia: regulations ignoring objective, functions, independence of the National Bank of Slovakia and the Bank of Estonia. Legal preparation is necessary for smooth introduction of the euro, providing necessary procedures of the introduction of the euro. However there are still certain demerits in the law of the Bank of Estonia related to integration of the Bank of Estonia to the European System of Central Banks with respect of issuance of banknotes and collection of statistical information. Research methodology. A comparative historical method was applied describing origin, development and conception of common monetary politics of the European Union. Analysis of literature and legal documents was applied in order to ascertain the role of the ECB and institutions of the European Union in the process of euro area expansion. A data analysis method was applied in order to establish macroeconomic problems in Slovakia and Estonia. A comparative analysis method was applied while analysing and assessing economic and legal convergence in Slovakia, Estonia and euro area. A generalization method was applied to make clear whether thorough satisfaction of economic convergence criteria and legal standards has been implemented in Estonia; assessment of Slovakia's benefit in euro area is presented, and final conclusions are drawn.
Subject of the final master's thesis is topical, because development and functioning of the common European Union monetary policy is especially important step in European integration, opening the way for final political approach of the member states. Thus a detailed study of this sphere of the European Union politics is necessary striving to cognize possibilities and challenges of the future integration processes. The last expansion in the Euro-area happened on 1 January 2009, when the euro was introduced in Slovakia. A number of the EU member states that use the currency of the European Union increased up to sixteen. Though Estonia still hasn't reached complete integration in the EMU process, yet in May 2010 European Commission officially suggested Estonia to join the Euro-area from 1 January 2011. Objective of the research is to assess Slovakia's and Estonia's economic and legal convergence. Considering the objective of the research and set tasks, stages of development of the Economic and Monetary Union in Europe are covered in the work in theoretical aspect, advantages and disadvantages of participation in the Economic and Monetary Union are highlighted; policy of the European Central Bank and other institutions of the European Union in the process of euro-area expansion is analysed; conformity of Slovakia's and Estonia's macroeconomic indices to criteria of Maastricht convergence and harmonization of the European Union Law and national law of the mentioned countries and estimation of Slovakia's benefits being in euro-area is presented as well as Estonia's preparation to join the Economic and Monetary Union. Performed dynamic analysis of Slovakia and Estonia's inflation, government budget deficit and gross debt, long-term interest rate and national currency stability level as well as analysis of the documents of the European Union, Slovakia and Estonia has revealed that Slovakia's convergence criteria have stabilized just after joining the EU and particular attention was paid to inflation reduction process. In convergence reports of 2008 published by the European Central Bank and European Commission Slovakia satisfied economic convergence criteria at least during the short period, however price stability and fiscal development durability in the long-term perspective remained unvalued. Situation in 2009 is a matter of great concern not only because of the price increase tendencies but also through unreliable management of public finances. Situation in Estonia is a bit different; however stabilisation of convergence criteria is also noticeable after joining the EU. While Slovakia has been trying to stabilize and retain convergence criteria keeping within control limits, Estonian Government spared a lot of attention towards securing stability of public finances, and this is proved by the fact that fiscal surplus and amount of gross debt of the government sector having prevailed during the period 2003 – 2008 haven't exceeded the limit of 8 per cent of GDP. However economic crisis that broke in 2008 caused overheat of Estonian economics. Inflation became uncontrolled and reached 10,6 per cent, deficit of government sector increased, simultaneously increasing the gross debt of the government sector. Thus Estonia's convergence in the long-term perspective is estimated as nondurable through macroeconomic imbalance likely to recur in future. The most important legal standards that required harmonization in Slovakia and Estonia: regulations ignoring objective, functions, independence of the National Bank of Slovakia and the Bank of Estonia. Legal preparation is necessary for smooth introduction of the euro, providing necessary procedures of the introduction of the euro. However there are still certain demerits in the law of the Bank of Estonia related to integration of the Bank of Estonia to the European System of Central Banks with respect of issuance of banknotes and collection of statistical information. Research methodology. A comparative historical method was applied describing origin, development and conception of common monetary politics of the European Union. Analysis of literature and legal documents was applied in order to ascertain the role of the ECB and institutions of the European Union in the process of euro area expansion. A data analysis method was applied in order to establish macroeconomic problems in Slovakia and Estonia. A comparative analysis method was applied while analysing and assessing economic and legal convergence in Slovakia, Estonia and euro area. A generalization method was applied to make clear whether thorough satisfaction of economic convergence criteria and legal standards has been implemented in Estonia; assessment of Slovakia's benefit in euro area is presented, and final conclusions are drawn.
The regional policy in life of the nowadays democratic European states becomes the most important and the most reliable tool, seeking for the people's overall welfare. The topic of Lithuanian regional development is not properly studied. That is why there is a need of analysis for economic disparities between the regions of Lithuania. The present thesis aims at analyzing regional economic disparities in Lithuania. Seeking for implementing of this goal, the following tasks were set: to investigate the regional development policies, to estimate regional disparities between Lithuanian regions and the potential of convergence. Seeking to fulfill the tasks of investigation the following methods of analysis were used: nonfiction, press publication, electronic information, statistical data and regression analysis. The author ascertained that certain regions, contribute more and more to the economic development of the country and recede from the other regions. The analysis of GDP per head components showed that growth of labor productivity and employment rate had positive impact on GDP per head growth and demographic dividend had negative impact. We say that there is beta-convergence over the period 1995-2006, but it is getting much lower since 2000. Also there is sigma-divergence among Lithuanian regions. In purpose to increase labor productivity growth in different regions and at the same to reduce backwardness, to stimulate convergence it is essential to stimulate growth of capital per head and especially technological progress.
The regional policy in life of the nowadays democratic European states becomes the most important and the most reliable tool, seeking for the people's overall welfare. The topic of Lithuanian regional development is not properly studied. That is why there is a need of analysis for economic disparities between the regions of Lithuania. The present thesis aims at analyzing regional economic disparities in Lithuania. Seeking for implementing of this goal, the following tasks were set: to investigate the regional development policies, to estimate regional disparities between Lithuanian regions and the potential of convergence. Seeking to fulfill the tasks of investigation the following methods of analysis were used: nonfiction, press publication, electronic information, statistical data and regression analysis. The author ascertained that certain regions, contribute more and more to the economic development of the country and recede from the other regions. The analysis of GDP per head components showed that growth of labor productivity and employment rate had positive impact on GDP per head growth and demographic dividend had negative impact. We say that there is beta-convergence over the period 1995-2006, but it is getting much lower since 2000. Also there is sigma-divergence among Lithuanian regions. In purpose to increase labor productivity growth in different regions and at the same to reduce backwardness, to stimulate convergence it is essential to stimulate growth of capital per head and especially technological progress.
The most important objective of the ES cohesion policy is the convergence of lifestyle of new and old EU member states. The fast convergences of the EU countries determine not only the fast economic growth in the new members, but also the fast boost in consumption, which endanger the environment. Therefore in Lithuanian national strategy for sustainable development is stated the goal, that in the case of economy growth, the environmental impact should grow at least twice slower than production and consumption The aim of the research - to analyze the convergence of socio-economic and environmental indicators in the EU, to estimate impact of socio-economic factors' to consumption and to assess environmental impact of consumption and the determinants of environmentally friendly behaviour. In the work were there complexly analyzed the convergence of the socio-economic and environmental indicators in the EU countries. There was evaluated, that Lithuania was catching-up the old EU member states by all investigated socio-economic indicators, however according to emission of acidifying compounds it even exceeded the level of EU15. The fast increase of disposable income determined the changes in Lithuanian consumption structure, when the consumption expenditure for luxury goods grew very fast and it slowed down the growth in environmental impact of increasing consumption. The environmental impact of consumption (except transport) increased considerably slower than consumption or it did not increase at all. The environmentally friendly behaviour of citizens is mostly determined by personal general values, evaluation of importance of the main environmental problems, and willingness to assume the responsibility for the solution of environmental problems. Therefore, seeking to reduce the environmental impact of consumption it is important to provide more information about the main environmental problems and to develop the willingness to contribute to the solutions of environmental problems in the daily life.
The most important objective of the ES cohesion policy is the convergence of lifestyle of new and old EU member states. The fast convergences of the EU countries determine not only the fast economic growth in the new members, but also the fast boost in consumption, which endanger the environment. Therefore in Lithuanian national strategy for sustainable development is stated the goal, that in the case of economy growth, the environmental impact should grow at least twice slower than production and consumption The aim of the research - to analyze the convergence of socio-economic and environmental indicators in the EU, to estimate impact of socio-economic factors' to consumption and to assess environmental impact of consumption and the determinants of environmentally friendly behaviour. In the work were there complexly analyzed the convergence of the socio-economic and environmental indicators in the EU countries. There was evaluated, that Lithuania was catching-up the old EU member states by all investigated socio-economic indicators, however according to emission of acidifying compounds it even exceeded the level of EU15. The fast increase of disposable income determined the changes in Lithuanian consumption structure, when the consumption expenditure for luxury goods grew very fast and it slowed down the growth in environmental impact of increasing consumption. The environmental impact of consumption (except transport) increased considerably slower than consumption or it did not increase at all. The environmentally friendly behaviour of citizens is mostly determined by personal general values, evaluation of importance of the main environmental problems, and willingness to assume the responsibility for the solution of environmental problems. Therefore, seeking to reduce the environmental impact of consumption it is important to provide more information about the main environmental problems and to develop the willingness to contribute to the solutions of environmental problems in the daily life.
The most important objective of the ES cohesion policy is the convergence of lifestyle of new and old EU member states. The fast convergences of the EU countries determine not only the fast economic growth in the new members, but also the fast boost in consumption, which endanger the environment. Therefore in Lithuanian national strategy for sustainable development is stated the goal, that in the case of economy growth, the environmental impact should grow at least twice slower than production and consumption The aim of the research - to analyze the convergence of socio-economic and environmental indicators in the EU, to estimate impact of socio-economic factors' to consumption and to assess environmental impact of consumption and the determinants of environmentally friendly behaviour. In the work were there complexly analyzed the convergence of the socio-economic and environmental indicators in the EU countries. There was evaluated, that Lithuania was catching-up the old EU member states by all investigated socio-economic indicators, however according to emission of acidifying compounds it even exceeded the level of EU15. The fast increase of disposable income determined the changes in Lithuanian consumption structure, when the consumption expenditure for luxury goods grew very fast and it slowed down the growth in environmental impact of increasing consumption. The environmental impact of consumption (except transport) increased considerably slower than consumption or it did not increase at all. The environmentally friendly behaviour of citizens is mostly determined by personal general values, evaluation of importance of the main environmental problems, and willingness to assume the responsibility for the solution of environmental problems. Therefore, seeking to reduce the environmental impact of consumption it is important to provide more information about the main environmental problems and to develop the willingness to contribute to the solutions of environmental problems in the daily life.
The most important objective of the ES cohesion policy is the convergence of lifestyle of new and old EU member states. The fast convergences of the EU countries determine not only the fast economic growth in the new members, but also the fast boost in consumption, which endanger the environment. Therefore in Lithuanian national strategy for sustainable development is stated the goal, that in the case of economy growth, the environmental impact should grow at least twice slower than production and consumption The aim of the research - to analyze the convergence of socio-economic and environmental indicators in the EU, to estimate impact of socio-economic factors' to consumption and to assess environmental impact of consumption and the determinants of environmentally friendly behaviour. In the work were there complexly analyzed the convergence of the socio-economic and environmental indicators in the EU countries. There was evaluated, that Lithuania was catching-up the old EU member states by all investigated socio-economic indicators, however according to emission of acidifying compounds it even exceeded the level of EU15. The fast increase of disposable income determined the changes in Lithuanian consumption structure, when the consumption expenditure for luxury goods grew very fast and it slowed down the growth in environmental impact of increasing consumption. The environmental impact of consumption (except transport) increased considerably slower than consumption or it did not increase at all. The environmentally friendly behaviour of citizens is mostly determined by personal general values, evaluation of importance of the main environmental problems, and willingness to assume the responsibility for the solution of environmental problems. Therefore, seeking to reduce the environmental impact of consumption it is important to provide more information about the main environmental problems and to develop the willingness to contribute to the solutions of environmental problems in the daily life.
The most important objective of the ES cohesion policy is the convergence of lifestyle of new and old EU member states. The fast convergences of the EU countries determine not only the fast economic growth in the new members, but also the fast boost in consumption, which endanger the environment. Therefore in Lithuanian national strategy for sustainable development is stated the goal, that in the case of economy growth, the environmental impact should grow at least twice slower than production and consumption The aim of the research - to analyze the convergence of socio-economic and environmental indicators in the EU, to estimate impact of socio-economic factors' to consumption and to assess environmental impact of consumption and the determinants of environmentally friendly behaviour. In the work were there complexly analyzed the convergence of the socio-economic and environmental indicators in the EU countries. There was evaluated, that Lithuania was catching-up the old EU member states by all investigated socio-economic indicators, however according to emission of acidifying compounds it even exceeded the level of EU15. The fast increase of disposable income determined the changes in Lithuanian consumption structure, when the consumption expenditure for luxury goods grew very fast and it slowed down the growth in environmental impact of increasing consumption. The environmental impact of consumption (except transport) increased considerably slower than consumption or it did not increase at all. The environmentally friendly behaviour of citizens is mostly determined by personal general values, evaluation of importance of the main environmental problems, and willingness to assume the responsibility for the solution of environmental problems. Therefore, seeking to reduce the environmental impact of consumption it is important to provide more information about the main environmental problems and to develop the willingness to contribute to the solutions of environmental problems in the daily life.
The most important objective of the ES cohesion policy is the convergence of lifestyle of new and old EU member states. The fast convergences of the EU countries determine not only the fast economic growth in the new members, but also the fast boost in consumption, which endanger the environment. Therefore in Lithuanian national strategy for sustainable development is stated the goal, that in the case of economy growth, the environmental impact should grow at least twice slower than production and consumption The aim of the research - to analyze the convergence of socio-economic and environmental indicators in the EU, to estimate impact of socio-economic factors' to consumption and to assess environmental impact of consumption and the determinants of environmentally friendly behaviour. In the work were there complexly analyzed the convergence of the socio-economic and environmental indicators in the EU countries. There was evaluated, that Lithuania was catching-up the old EU member states by all investigated socio-economic indicators, however according to emission of acidifying compounds it even exceeded the level of EU15. The fast increase of disposable income determined the changes in Lithuanian consumption structure, when the consumption expenditure for luxury goods grew very fast and it slowed down the growth in environmental impact of increasing consumption. The environmental impact of consumption (except transport) increased considerably slower than consumption or it did not increase at all. The environmentally friendly behaviour of citizens is mostly determined by personal general values, evaluation of importance of the main environmental problems, and willingness to assume the responsibility for the solution of environmental problems. Therefore, seeking to reduce the environmental impact of consumption it is important to provide more information about the main environmental problems and to develop the willingness to contribute to the solutions of environmental problems in the daily life.
Many countries face the challenge of ensuring equal opportunities for all citizens, irrespective of where they reside. These problems cannot be solved without an evaluation of social, territorial, and economic disparities. It is important to understand the causes and nature of this process, because even small differences in economic growth among regions, accumulated over a long period, may lead to considerable disparities in living standards in different parts of the same country. These differences have negative impact on further economic growth and contribute to economic, social and political tensions between regions, which in turn lead to an inefficient spatial allocation and use of resources. This has led that European economic integration which began in the fifties of the last century was always accompanied by the idea of social cohesion. While developing cohesion programs the evaluation of economic disparities between regions has become particularly relevant and regional economic convergence became the main principle of regional policy. EU regional policy can be considered successful if the disparities between the regions decrease, but studies dealing with the convergence / divergence matter do not provide definitive conclusions. Evaluation of regional economic convergence process primarily highlights the problem of definition of the region, whereas the term, depending on the context in which it is used, acquires a different meaning. The criteria to define the concept of the region range between two extremes – the normative and functional. The studies on the regions of the EU member states most commonly use administrative regions which are defined according to the nomenclature of territorial statistical units. According to the review of researches on regional convergence in the EU it can be stated that despite a few exceptions analyses focus on NUTS2 (less commonly NUTS1) level regions. [.]
