On January 1, 2014, local time, Latvia officially joined the Eurozone, becoming its 18th member state.
Immediately after midnight on December 31, 2013, music filled the air and fireworks illuminated the riverfront streets of the old town of Riga, the capital. Thousands of Latvians gathered to celebrate the arrival of the New Year and the historic moment of joining the Eurozone. At 12:25 AM, the Euro launch ceremony was held at Republic Square in the city center of Riga. Latvian Prime Minister Valdis Dombrovskis withdrew a 10-euro banknote from an ATM, symbolizing the country's official entry into the Eurozone.
Latvia was severely affected by the global financial crisis in 2008-2009. Valdis Dombrovskis, who actively campaigned for Latvia to join the Eurozone, successfully secured a 7.5 billion euro international bailout package to prevent the country from going bankrupt, though the cost was the implementation of strict austerity measures.
In 2011 and 2012, Latvia's economic growth rate ranked first in the European Union, and it was on track to achieve 4% economic growth in 2013. European Central Bank President Mario Draghi stated: “Latvia has played a model role in terms of fiscal adjustment.”