The Euro zone has been fraught with troubles. It has been criticized for the mess that it has landed itself in. But even during these tough times there are countries that are happy to be a part of it. The latest to join this group is the small nation of Latvia. It has recently been accepted as a part of the bloc and is delighted by the move. The country had been asked to clean up its economy post the crisis of 2008. And it has effectively managed to do so which is why it was accepted into the group. However despite having adhered to all the requirements there is very little for the country to cheer about. The problems that the Euro zone faces with regards to Spain and the rest of its troubled countries are not really going away. During such times the entry of Latvia has made the zone even more risk y. Its banking system is not one of the soundest ones with non residents accounting for around half of the deposits. At the same time, the country's unemployment rate stands at 12.8% which is higher than the Euro zone's average of 12.2%.

Latvia has quite a bit to cheer about because despite its troubles it can now enjoy the lower interest rate environment of the Euro zone. But the added risk makes the zone even more unstable. So any sparks could mean that the country could find itself at the brink of danger. Remember what happened to Greece? The situation could very well replicate itself for Latvia.