The aim of the article is the analysis and comparison of the level and the determinants of
preparation of Latria, Lithuania and Estonia for entering eurozone in the context of nominal
convergence criteria. Estonia fulfilled all the conditions and will become the member of eurozone
in 2011. In Latvia and Lithuania the criteria of long-term interest rates and budget deficit are
exceeded, in Lithuania with the addition of price stability criterion. The budget deficit reduction is
the most important challenge for the Baltic countries. The advantages of entering eurozone by
these countries cover intensification of trade among its members, increase in price comparability
and more effective capital allocation and transformation. The main disadvantage is the risk of
disparity of common monetary policy against the pace of economic development
