Latvia could join eurozone in 2014

Lithuania and Latvia are the two countries most likely to meet the Maastricht criteria for joining the European Union over the coming two years, according to the latest report from leading Swedish bank Swedbank.

This could have tangible benefits for those investing in the countries, according to the bank, which is one of the largest retail operators in the Baltic region.

However, Latvia continues to be in a stronger position than many of its counterparts and is the most likely to join the common currency, Swedbank added. "It has more room for manoeuvre in terms of the price stability and budget deficit criteria, as well as stronger political resolve," the bank claimed.

Whether either country will be able to fulfil the interest rate conditions remains to be seen, according to the report. The Latvian economy enjoyed a further increase in retail trade over June 2012, underlining that it remains in a relatively strong position.