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It seems that lately, the words “euro” and “crisis” are inseparable. Lithuania is not perturbed. It is abiding by the introduction of the common European currency. In an interview, President Dalia Grybauskaite explains why – and what other countries have done wrong.

It’s been almost ten years now since Lithuania became a member of the European Union. Now the next step is about to be taken: introducing the euro in 2015 – despite the ongoing economic crisis. Why?

Grybauskaite: The economic crisis is not a euro crisis. There are also economic difficulties in countries that do not have the euro – while at the same time, there are eurozone countries that don’t have any difficulties. In our accession treaty it says that we will introduce the euro as soon as possible. So it really is an obligation based on that treaty. In the case of Lithuania, in reality, we already have the euro because our currency is pegged to the euro at a fixed, strong rate. Our monetary policy very much depends on the European Central Bank. We do not have monetary instruments of our own. We have only the eurozone obligations and restrictions – not the benefits. So, there are enough reasons to join the eurozone as soon as we can.

The crisis is still going on. Some countries have to keep stepping in to help others. Aren’t you afraid the system might collapse?

I don’t think it’s about the euro at all. It’s about economic and fiscal policies and political responsibility in some member states – which was not always the case. So you cannot blame the euro if within your country you’re unable to make responsible political decisions.

You took responsibility when the crisis hit Lithuania in 2009 and applied severe austerity measures. You did not apply for financial assistance from the International Monetary Fund (IMF). You even said, “Countries who do that cannot help themselves, showing that they are weak.”

I think that Lithuania was very well able to do it on its own, without dictatorship from outside. And this is exactly what I meant: If political will and political responsibility are in place, you don’t need anybody to help you. It is only up to you how you manage your country. This lack of responsibility is exactly the problem in some of the southern European countries.

Latvia, your neighbouring country, did apply for financial assistance. Now it is one of the strongest growing countries in Europe. Did you make the right choice?

As an economist, I say, the harder you fall, the stronger your growth will naturally be. It depends on from what basis you measure it. Lithuania also has strong growth. I think last quarter we were the third in growth. But this is healthy growth because our drop was not as huge as in Latvia. A politician can be proud of making such a decision and taking up all the responsibility. I had the experience of dealing with the IMF previously, in 1999 after the Russian crisis. And my experience was that nobody will help – neither the IMF, nor any EU programs or funds – unless you are able to manage your country well.

You mentioned southern Europe. Spain, Greece – they also had severe cuts. However people there went to the streets and protested. You didn’t have that here.

Even these countries did not have as severe cuts as we did. We cut 12 percent of our state expenditure – we had no other choice. The markets were closed. The help we would be receiving was not coming as fast as we needed it. So, the government made fast decisions with my support. But of course it’s about how you persuade people. And you have to begin with yourself – that means my salary as a president was cut by 30 percent. The government’s salaries were also cut very much. If I ask people to be patient and to suffer, I need to set an example. The same goes for any politician who is in power. Only by giving a personal example, by winning the trust of the people, can you persuade people to wait a little bit promise them that things will improve. We managed this in two years. We’re slowly starting to recover salaries. It’s about trust between politicians and people.

Is it also about a difference in mentality?

Sometimes we criticize ourselves for being too self-critical, less optimistic than in southern European countries. But that is not the only reason. Mistrust between the political elite and the people had probably been growing for too long in some southern European countries. And this was very bad for the countries, societies and economies. The people were not happy here with the austerity measures but it was a necessity. And these measures helped us to restore our economy within one and a half years. We didn’t have to suffer for very long.

What do you expect for your country’s future – no more crisis?

I think things will get better each year. We survived 50 years of occupation, so we will also survive better times – I’m joking a bit. Of course, some things will change. It will depend very much on who is in power. Populism is growing everywhere, probably as a result of economic difficulties. Political parties are losing support because they are not able to adapt themselves, to reform themselves fast enough. That frustrates the population. But, these are trends that are similar across all of the European Union.

Monika Griebeler held the interview