Search results for: Latvia

Authors: Vita Levkane, Sandra Muizniece-Brasava, Lija Dukalska

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Experiments have been carried out at the Latvia University of Agriculture Department of Food Technology. The aim of this work was to assess the effect of sous vide packaging during the storage time of salad with meat in mayonnaise at different storage temperature. Samples were evaluated at 0, 1, 3, 7, 10, 15, 18, 25, 29, 42, and 52 storage days at the storage temperature of +4±0.5 ºC and +10±0.5 ºC. Experimentally the quality of the salad with meat in mayonnaise was characterized by measuring colour, pH and microbiological properties. The sous vide packaging was effective in protecting the product from physical, chemical, and microbial quality degradation. The sous vide packaging significantly reduces microbial growth at storage temperature of +4±0.5 ºC and +10±0.5 ºC. Moreover, it is possible to extend the product shelf life to 52 days even when stored at +10±0.5 ºC.

Keywords: salad with meat in mayonnaise, shelf life, sous videpackaging.

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Authors: J. Vilgerts, L. Timma, D. Blumberga

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The objective of the paper is to develop the forecast model for the HW flows. The methodology of the research included 6 modules: historical data, assumptions, choose of indicators, data processing, and data analysis with STATGRAPHICS, and forecast models. The proposed methodology was validated for the case study for Latvia. Hypothesis on the changes in HW for time period of 2010-2020 have been developed and mathematically described with confidence level of 95.0% and 50.0%. Sensitivity analysis for the analyzed scenarios was done. The results show that the growth of GDP affects the total amount of HW in the country. The total amount of the HW is projected to be within the corridor of – 27.7% in the optimistic scenario up to +87.8% in the pessimistic scenario with confidence level of 50.0% for period of 2010-2020. The optimistic scenario has shown to be the least flexible to the changes in the GDP growth.

Keywords: Forecast models, hazardous waste management, sustainable development, waste management indicators.

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Authors: B. Zvirbule, I. Vilka

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The Baltic States regained independence and started the pathway from command economy to market economy and entered European Union at the same time. Latter internationally recognized evaluations for the countries are diverse. The present diversity of the Baltic States -Economic Development is a subject of interest because of the similarities – all three are small, open economies, countries have similar geographic location and initially likewise historical and political backgrounds. This article explains relationship between social environment, business environment and economic growth. It argues that the elements of social environment underlie more successful economic development. It researches the causes, why Estonia has performed better in economic outcomes and development. The article analyses selection of socio-economic indicators of all three Baltic States – Latvia, Lithuania and Estonia for the time period of ten years to include the influence of economic cycles.

Keywords: Baltic States, economic development, economic growth, level of education, social environment.

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Authors: I. Gedrovica, D. Karklina

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From year to year, the incidence of different diseases is increasing in humans, and the cause is inadequate intake of dietary fibre, vitamins, and minerals. One of the possibilities to take care of your health preventively is including in the diet products with increased dietary fibre, vitamin, and mineral content.Jerusalem artichoke powder (JAP) made from Jerusalem artichoke (Helianthus tuberosus L) roots is a valuable product. By adding it to pastry goods, we can obtain a fibre-rich food that could be healthier and an excellent alternative to the classical pastry products of this kind.Experiments were carried out at the Faculty of Food Technology of Latvia University of Agriculture (LLU). Results of experiments showed that addition of Jerusalem artichoke powder has significant impact on all the studied pastry products nutritional value (p<0.05). With increasing concentration of Jerusalem artichoke powder in pastry products increase it nutritional value and decrease energy value.

Keywords: Biscuits, cakes, Jerusalem artichoke powder, nutritional and energy value

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Authors: J. Erina, I. Erins

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The goals of the present research are to estimate Six Sigma implementation in Latvian commercial banks and to identify the perceived benefits of its implementation. To achieve the goals, the authors used sequential explanatory method. To obtain empirical data, the authors have developed the questionnaire and adapted it for the employees of Latvian commercial banks. The questions are related to Six Sigma implementation and its perceived benefits. The questionnaire mainly consists of closed questions, the evaluation of which is based on 5 point Likert scale. The obtained empirical data has shown that of the two hypotheses put forward in the present research – Hypothesis 1 – has to be rejected, while Hypothesis 2 has been partially confirmed. The authors have also faced some research limitations related to the fact that the participants in the questionnaire belong to different rank of the organization hierarchy.

Keywords: Six Sigma, Quality, Commercial banking sector, Latvia.

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Authors: Ilze Stokmane

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Economic processes underway in the country directly and indirectly affect the welfare of the people and the social environment, starting with job security and having a direct impact on the qualitative and safe living environment.

The paper describes existing situation and gives analysis of the regional development policy determination and implementation in the all three Baltic countries. According statistical indicators there are differences between implementation of the regional development activities between all Baltic countries and in regions of inside each country.

It is analyzed more detail differences between regions in Latvia, Lithuania and Estonia according possibility to evaluate success of development processes in regions of the Baltic countries. The descriptive analyze of documents, statistical indicators at national level and regional level were used in the research.

Keywords: Baltic countries, city environment, regional development, urban areas.

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Authors: Ģirts Brasliņš, Ilja Arefjevs, Nadežda Tarakanova

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The objective of countercyclical capital buffer is to encourage banks to build up buffers in good times that can be drawn down in bad times. The aim of the report is to assess such decisions by banks derived from three approaches. The approaches are the aggregate credit-to-GDP ratio, credit growth as well as banking sector profits. The approaches are implemented for Estonia, Latvia and Lithuania for the time period 2000-2012. The report compares three approaches and analyses their relevance to the Baltic States by testing the correlation between a growth in studied variables and a growth of corresponding gaps. Methods used in the empirical part of the report are econometric analysis as well as economic analysis, development indicators, relative and absolute indicators and other methods. The research outcome is a cross-Baltic comparison of two alternative approaches to establish or release a countercyclical capital buffer by banks and their implications for each Baltic country.

Keywords: Basel III, countercyclical capital buffer, banks, credit growth, Baltic States.

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Authors: Sandija Zeverte-Rivza, Irina Pilvere, Baiba Rivza

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The use of renewable energy sources incl. biogas has become topical in accordance with the increasing demand for energy, decrease of fossil energy resources and the efforts to reduce greenhouse gas emissions as well as to increase energy independence from the territories where fossil energy resources are available.

As the technologies of biogas production from agricultural biomass develop, risk assessment and risk management become necessary for farms producing such a renewable energy. The need for risk assessments has become particularly topical when discussions on changing the biogas policy in the EU take place, which may influence the development of the sector in the future, as well as the operation of existing biogas facilities and their income level.

The current article describes results of the risk assessment for farms producing biomass from agriculture biomass in Latvia, the risk assessment system included 24 risks, that affect the whole biogas production process and the obtained results showed the high significance of political and production risks.

Keywords: Biogas production, risks, risk assessment.

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Authors: O. Starineca, I. Voronchuk

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Human Resources (HR) selection and training have various implementation possibilities depending on an organization’s abilities and peculiarities. We propose to base HR selection and training decisions about on a competence-based approach. HR selection and training of employees are topical as there is room for improvement in this field; therefore, the aim of the research is to propose rational decision-making approaches for an organization HR selection and training choice. Our proposals are based on the training development and competence-based selection approaches created within previous researches i.e. Analytic-Hierarchy Process (AHP) and Linear Programming. Literature review on non-formal education, competence-based selection, AHP form our theoretical background. Some educational service providers in Latvia offer employees training, e.g. motivation, computer skills, accounting, law, ethics, stress management, etc. that are topical for Public Administration. Competence-based approach is a rational base for rational decision-making in both HR selection and considering HR training.

Keywords: Competence-based selection, human resource, training, decision-making.

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Authors: Sandra Muizniece-Brasava, Lija Dukalska, Irisa Murniece, Ilona Dabina-Bicka, Emils Kozlinskis, Svetlana Sarvi, Ralfs Santars, Anna Silvjane

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The research object was wheat bread. Experiments were carried out at the Faculty of Food Technology of the Latvia University of Agriculture. An active packaging in combination with modified atmosphere (MAP, CO2 60% and N2 40%) was examined and compared with traditional packaging in air ambiance. Polymer Multibarrier 60, PP and OPP bags were used. Influence of iron based oxygen absorber in sachets of 100 cc obtained from Mitsubishi Gas Chemical Europe Ageless® was tested on the quality during the shelf of wheat bread. Samples of 40±4 g were packaged in polymer pouches (110 mm x 120 mm), hermetically sealed by MULTIVAC C300 vacuum chamber machine, and stored in room temperature +21.0±0.5 °C. The physiochemical properties – weight losses, moisture content, hardness, pH, colour, changes of atmosphere content (CO2 and O2) in headspace of packs, and microbial conditions were analysed before packaging and in the 7th, 14th, 21st and 28th days of storage.

Keywords: Active packaging, wheat bread, shelf life.

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Authors: Rita Riekstina-Dolge, Zanda Kruma, Daina Karklina, Fredijs Dimins

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Apple juice is the main raw material for cider production. In this study apple juices obtained from 14 dessert and crab variety apples grown in Latvia were investigated. For all samples soluble solids, titratable acidity, pH and sugar content were determined. Crab apples produce more dry matter, total sugar and acid content compared to the dessert apples but it depends on the apple variety. Total sugar content of crab apple juices was 1.3 to 1.8 times larger than in dessert apple juices. Titratable acidity of dessert apple juices is in the range of 4.1g L^-1 to 10.83g L^-1 and in crab apple juices titratable acidity is from 7.87g L^-1 to 19.6g L^-1. Fructose was detected as the main sugar whereas glucose level varied depending on the variety. The highest titratable acidity and content of sugars was detected in ‘Cornelia’ apples juice.

Keywords: Apple juice, hierarchical cluster analysis, sugars, titratable acidity.

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Authors: Sandra Muizniece-Brasava, Lija Dukalska, Solvita Kampuse, Irisa Murniece, Martins Sabovics, IlonaDabina-Bicka, Emils Kozlinskis, Svetlana Sarvi

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The research object was apple-black currant marmalade candies. Experiments were carried out at the Faculty of Food Technology of the Latvia University of Agriculture. An active packaging in combination with modified atmosphere (MAP, CO2 100%) was examined and compared with traditional packaging in air ambiance. Polymer Multibarrier 60 and paper bags were used. Influence of iron based oxygen absorber in sachets of 500 cc obtained from Mitsubishi Gas Chemical Europe Ageless® was tested on the quality during the shelf of marmalade. Samples of 80±5 g were packaged in polymer pouches (110 mm x 110 mm), hermetically sealed by MULTIVAC C300 vacuum chamber machine, and stored in room temperature +20.0±1.0 °C. The physiochemical properties – weight losses, moisture content, hardness, aw, pH, colour, changes of atmosphere content (CO2 and O2) in headspace of packs, and microbial conditions were analysed before packaging and in the 1st, 3rd , 5th, 8th, 11th and 15th weeks of storage.

Keywords: Active packaging, marmalade candies, shelf life

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Authors: I. Krasnova, L. Dukalska, D. Seglina, K. Juhnevica, E. Sne, D. Karklina

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Experiments were carried out at the Latvia State Institute of Fruit-Growing in 2011. Fresh-cut minimally processed apple and pear mixed salad were packed by passive modified atmosphere (MAP) in PP containers, which were hermetically sealed by breathable conventional BOPP PropafreshTM P2GAF, and Amcor Agrifresh films. Biodegradable NatureFlexTM NVS INNOVIA Films and VC999 BioPack PLA films coated with a barrier of pure silicon oxide (SiOx) were used to compare the fresh-cut produce quality with this packed in conventional packaging films. Samples were cold stored at temperature +4.0±0.5 °C up to 10 days. The quality of salad was evaluated by physicochemical properties – weight losses, moisture, firmness, the effect of packaging modes on the colour, dynamics in headspace atmosphere concentration (CO2 and O2), titratable acidity values, as well as by microbiological contamination (yeasts, moulds and total bacteria count) of salads, analyzing before packaging and after 2, 4, 6, 8, and 10 storage days.

Keywords: Biodegradable packaging, conventional, fresh-cut fruit salad

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Authors: Sigita Boca, Ruta Galoburda, Inta Krasnova, Dalija Seglina, Aivars Aboltins, Imants Skrupskis

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The aim of the study was to evaluate the effect of texturizers on the rheological properties of the apple mass and desserts made from various raw materials. The apple varieties - ‘Antonovka’, ‘Baltais Dzidrais’, and ‘Zarja Alatau’ harvested in Latvia, were used for the experiment. The apples were processed in a blender unpeeled for obtaining a homogenous mass. The apple mass was analyzed fresh and after storage at –18ºC. Both fresh and thawed apple mass samples with added gelatin, xantan gum, and sodium carboxymethylcellulose were whisked obtaining dessert. Pectin, pH and soluble dry matter of the product were determined. Apparent viscosity was measured using a rotational viscometer DV–III Ultra. Pectin content in frozen apple mass decreased significantly (p<0.05) compared to the fresh sample. The viscosity of apple desserts immediately after their preparation depends on the physico-chemical properties of apples and the texturizers used in the production.

Keywords: Apple variety, apparent viscosity, hydrocolloids, pectin, texturizers.

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Authors: Sandra Muizniece-Brasava, Aija Ruzaike, Lija Dukalska, Ilze Stokmane, Liene Strauta

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Experiments have been carried out at the Latvia University of Agriculture Department of Food Technology. The aim of this work was to assess the effect of thermal treatment in flexible retort pouch packaging on the quality of potatoes’ produce during the storage time. Samples were evaluated immediately after retort thermal treatment; and following 1; 2; 3 and 4 storage months at the ambient temperature of +18±2ºC in vacuum packaging from polyamide/polyethylene (PA/PE) and aluminum/polyethylene (Al/PE) film pouches with barrier properties. Experimentally the quality of the potatoes’ produce in dry butter and mushroom dressings was characterized by measuring pH, hardness, color, microbiological properties and sensory evaluation. The sterilization was effective in protecting the produce from physical, chemical, and microbial quality degradation. According to the study of obtained data, it can be argued that the selected product processing technology and packaging materials could be applied to provide the safety and security during four-month storage period.

Keywords: Potatoes’ produce, shelf life, retort thermal treatment and packaging.

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Authors: Karina Ruse, Martins Sabovics, Tatjana Rakcejeva, Lija Dukalska, Ruta Galoburda, Laima Berzina

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the research was accomplished on fresh in Latvia wild growing cranberries and cranberry cultivars. The aim of the study was to evaluate effect of pretreatment method and drying conditions on the volatile compounds composition in cranberries. Berries pre-treatment methods were: perforation, halving and steam-blanching. The berries before drying in a cabinet drier were pre-treated using all three methods, in microwave vacuum drier – using a steam-blanching and halving. Volatile compounds in cranberries were analysed using GC-MS of extracts obtained by SPME. During present research 21 various volatile compounds were detected in fresh cranberries: the cultivar 'Steven' - 15, 'Bergman' and 'Early black' – 13, 'Ben Lear' and 'Pilgrim' – 11 and wild cranberries – 14 volatile compounds. In dried cranberries 20 volatile compounds were detected. Mathematical data processing allows drawing a conclusion that there exists the significant influence of cranberry cultivar, pre-treatment method and drying condition on volatile compounds in berries and new volatile compound formation.

Keywords: volatile compounds, cranberries, convective drier, microwave-vacuum drier

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Authors: Ando Leppiman, Kati Kõrbe Kaare, Ott Koppel

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Growing demand for gas has rekindled a debate on gas security of supply due to supply interruptions, increasing gas prices, cross-border bottlenecks and a growing reliance on imports over longer distances. Security of supply is defined mostly as an infrastructure package to satisfy N-1 criteria. In case of Estonia, Finland, Latvia and Lithuania all the gas infrastructure is built to supply natural gas only from one single supplier, Russia. In 2012 almost 100% of natural gas to the Eastern Baltic Region was supplied by Gazprom. Under such circumstances infrastructure N-1 criteria does not guarantee security of supply. In the Eastern Baltic Region, the assessment of risk of gas supply disruption has been worked out by applying the method of risk scenarios. There are various risks to be tackled in Eastern Baltic States in terms of improving security of supply, such as single supplier risk, physical infrastructure risk, regulatory gap, fair price and competition. The objective of this paper is to evaluate the energy security of the Eastern Baltic Region within the framework of the European Union’s policies and to make recommendations on how to better guarantee the energy security of the region.

Keywords: Security of supply, supply routes for natural gas, energy balance, diversified supply options, common regulative package.

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Authors: O. Starineca

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Some organizations as employers have difficulties to attract job seekers and retain their employees. Strategic planning of Human Resources (HR) presumes broad analysis of perspectives including analysis of potential job seekers in the field. Human Resources Recruitment (HRR) influences employer brand of an organization and peculiarities of both external organizational factors and stakeholders. Defining peculiarities of the future job seekers, who could potentially become the employees of the organization, could help to adjust HRR tools and methods adapt to the youngest generation employees’ preferences and be more successful in selecting the best candidates, who are likely to be loyal to the employer. The aim of the empirical study is definition of some students’ as job seekers peculiarities and their requirements to their potential employer. The survey in Latvia, Lithuania and Spain. Respondents were students from these countries’ tertiary education institutions Public Administration (PA) or relevant study programs. All three countries students’ peculiarities have just a slight difference. Overall, they all wish to work for a socially responsible employer that is able to provide positive working environment and possibilities for professional development and learning. However, respondents from each country have own peculiarities. The study might have a practical application. PA of the examined countries might use the results developing employer brand and creating job advertisements focusing on recent graduates’ recruitment.

Keywords: Generation Y, human resources recruitment, public administration.

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Authors: Solvita Kampuse, Elga Berna, Sandra Muizniece-Brasava, Lija Dukalska, Irisa Murniece, Martins Sabovics, Zanda Kruma, Karina Ruse, Svetlana Sarvi, Kaspars Kampuss

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Experiments with pumpkin-rowanberry marmalade candies were carried out at the Faculty of Food Technology of the Latvia University of Agriculture. The objective of this investigation was to evaluate the quality changes of pumpkin-rowanberry marmalade candies packed in different packaging materials during the storage of 15 weeks, and to find the most suitable packaging material for prolongation of low sugar marmalade candies shelf-life. An active packaging in combination with modified atmosphere (MAP, CO2 100%) was examined and compared with traditional packaging in air ambiance. Polymer Multibarrier 60 and paper bags were used. Influence of iron based oxygen absorber in sachets of 500 cc obtained from Mitsubishi Gas Chemical Europe Ageless® on the marmalade candies’ quality was tested during shelf life. Samples of 80±5 g were packaged in polymer pouches (110 mm x 110 mm), hermetically sealed by MULTIVAC C300 vacuum chamber machine, and stored in a room temperature +21±0.5 °C. The physiochemical properties –moisture content, hardness, aw, pH, changes of atmosphere content (CO2 and O2), ascorbic acid, total carotenoids, total phenols in headspace of packs, and microbial conditions were analysed before packaging and in the 1st, 3rd , 5th, 8th, 11th and 15th weeks of storage.

Keywords: Active packaging, marmalade candies, shelf life

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Authors: S. Petrovska, D. Jonkus, D. Smiltiņa

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κ-casein is one of milk proteins which are very important for milk processing. Genotypes of κ-casein affect milk yield, fat, and protein content. The main factors which affect local Latvian dairy breed milk yield and composition are analyzed in research. Data were collected from 88 Latvian brown and 82 Latvian blue cows in 2015. AA genotype was 0.557 in Latvian brown and 0.232 in Latvian blue breed. BB genotype was 0.034 in Latvian brown and 0.207 in Latvian blue breed. Highest milk yield was observed in Latvian brown (5131.2 ± 172.01 kg), significantly high fat content and fat yield also was in Latvian brown (p < 0.05). Significant differences between κ-casein genotypes were not found in Latvian brown, but highest milk yield (5057 ± 130.23 kg), protein content (3.42 ± 0.03%), and protein yield (171.9 ± 4.34 kg) were with AB genotype. Significantly high fat content was observed in Latvian blue breed with BB genotype (4.29 ± 0.17%) compared with AA genotypes (3.42 ± 0.19). Similar tendency was found in protein content – 3.27 ± 0.16% with BB genotype and 2.59 ± 0.16% with AA genotype (p < 0.05). Milk yield increases by increasing parity. We did not obtain major tendency of changes of milk fat and protein content according parity.

Keywords: κ-casein, polymorphism, dairy cows, milk productivity.

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Authors: V. Radenkovs, D. Klava, K. Juhnevica

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The present study addresses problems and solutions related to new functional food production. Wheat (Triticum aestivum L) bran obtained from industrial mill company “Dobeles dzirnavieks”, was used to investigate them as raw material like nutrients for Bifidobacterium lactis Bb-12. Enzymatic hydrolysis of wheat bran starch was carried out by α-amylase from Bacillus amyloliquefaciens (Sigma Aldrich). The Viscozyme L purchased from (Sigma Aldrich) were used for reducing released sugar. Bifidibacterium lactis Bb-12 purchased from (Probio-Tec® CHR Hansen) was cultivated in enzymatically hydrolysed wheat bran mash. All procedures ensured the number of active Bifidobacterium lactis Bb-12 in the final product reached 105 CFUg-1. After enzymatic and bacterial fermentations sample were freeze dried for analysis of chemical compounds. All experiments were performed at Faculty of Food Technology of Latvia University of Agriculture in January- March 2013. The obtained results show that both types of wheat bran (enzymatically treated and non-treated) influenced the fermentative activity and number of Bifidibacterium lactis Bb-12 viable in wheat bran mash. Amount of acidity strongly increase during the wheat bran mash fermentation. The main objective of this work was to create low-energy functional enzymatically and bacterially treated food from wheat bran using enzymatic hydrolysis of carbohydrates and following cultivation of Bifidobacterium lactis Bb-12.

Keywords: Viscozyme L, α-amylase, Bifidobacterium lactis, fermented wheat bran.

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Authors: Liga Priecina, Daina Karklina

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Antioxidants are became the most analyzed substances in last decades. Antioxidants act as in activator for free radicals. Spices and vegetables are one of major antioxidant sources. Most common antioxidants in vegetables and spices are vitamin C, E, phenolic compounds, carotenoids. Therefore, it is important to get some view about antioxidant changes in spices and vegetables during processing. In this article was analyzed nine fresh and dried spices and vegetables- celery (Apium graveolens), parsley (Petroselinum crispum), dill (Anethum graveolens), leek (Allium ampeloprasum L.), garlic (Allium sativum L.), onion (Allium cepa), celery root (Apium graveolens var. rapaceum), pumpkin (Curcubica maxima), carrot (Daucus carota)- grown in Latvia 2013. Total carotenoids and phenolic compounds and their antiradical scavenging activity were determined for all samples. Dry matter content was calculated from moisture content. After drying process carotenoid content significantly decreases in all analyzed samples, except one -carotenoid content increases in parsley. Phenolic composition was different and depends on sample – fresh or dried. Total phenolic, flavonoid and phenolic acid content increases in dried spices. Flavan-3-ol content is not detected in fresh spice samples. For dried vegetables- phenolic acid content decreases significantly, but increases flavan-3-ols content. The higher antiradical scavenging activity was observed in samples with higher flavonoid and phenolic acid content.

Keywords: Antiradical scavenging activity, carotenoids, phenolic compounds, spices, vegetables.

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Authors: N. Damenia, E. Kharaishvili, N. Sagareishvili, M. Saghareishvili

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Women's Employment is one of the most important issues in the global economy. The article discusses the stated topic in Georgia, through historical content, Soviet experience, and modern perspectives. The paper discusses segmentation insa terms of employment and related problems. Based on statistical analysis, women's unemployment rate and its factors are analyzed. The level of employment of women in Transcaucasia (Georgia, Armenia, and Azerbaijan) is discussed and is compared with Baltic countries (Lithuania, Latvia, and Estonia). The study analyzes women’s level of development, according to the average age of marriage and migration level. The focus is on Georgia's Association Agreement with the EU in 2014, which includes economic, social, trade and political issues. One part of it is gender equality at workplaces. According to the research, the average monthly remuneration of women managers in the financial and insurance sector equaled to 1044.6 Georgian Lari, while in overall business sector average monthly remuneration equaled to 961.1 GEL. Average salaries are increasing; however, the employment rate remains problematic. For example, in 2017, 74.6% of men and 50.8% of women were employed from a total workforce. It is also interesting that the proportion of men and women at managerial positions is 29% (women) to 71% (men). Based on the results, the main recommendation for government and civil society is to consider women as a part of the country’s economic development. In this aspect, the experience of developed countries should be considered. It is important to create additional jobs in urban or rural areas and help migrant women return and use their working resources properly.

Keywords: Employment of women, segregation in terms of employment, women's employment level in Transcaucasia, migration level.

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Authors: Gordana Kordić, Petra Palić

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The European countries that during the past two decades based their exchange rate regimes on currency board arrangement (CBA) are usually analysed from the perspective of corner solution choice’s stabilisation effects. There is an open discussion on the positive and negative background of a strict exchange rate regime choice, although it should be seen as part of the transition process towards the monetary union membership. The focus of the paper is on the Baltic countries that after two decades of a rigid exchange rate arrangement and strongly influenced by global crisis are finishing their path towards the euro zone. Besides the stabilising capacity, the CBA is highly vulnerable regime, with limited developing potential. The rigidity of the exchange rate (and monetary) system, despite the ensured credibility, do not leave enough (or any) space for the adjustment and/or active crisis management. Still, the Baltics are in a process of recovery, with fiscal consolidation measures combined with (painful and politically unpopular) measures of internal devaluation. Today, two of them (Estonia and Latvia) are members of euro zone, fulfilling their ultimate transition targets, but de facto exchanging one fixed regime with another. The paper analyses the challenges for the CBA in unstable environment since the fixed regimes rely on imported stability and are sensitive to external shocks. With limited monetary instruments, these countries were oriented to the fiscal policies and used a combination of internal devaluation and tax policy measures. Despite their rather quick recovery, our second goal is to analyse the long term influence that the measures had on the national economy.

Keywords: Currency Board Arrangement, internal devaluation, exchange rate regime, Great recession.

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