"There has been a tremendous transformation that's taken place over the past year since the arrival of a new government which many people thought would be a step back. It had a reputation of being nationalist. But in actual fact it's made a whole range of moves, so most importantly on relations with Kosovo, which has been a very, very tricky subject since Kosovo declared independence in 2008," said Ker-Lindsay.

Meanwhile Latvia gained formal approval Friday to join the eurozone on January 1, 2014 - becoming the 18th country to use the currency.