Estonia Will Adopt European Currency

Estonia, which emerges in a copy of a deep recession, will adopt the European currency in January, although the euro area is undergoing its worst crisis since its creation in 1999 because of the huge sovereign debt of many of its members. The Baltic country of 1.3 million inhabitants, a member since 2004 of the European Union (EU of 27 members), will become the 1st January in the seventeenth member of the eurozone, will also be the third former communist country after Slovenia in 2007 and Slovakia in 2009, to adopt the euro. According to surveys, about half of Estonians want the euro to replace the crown currency created in 1992 to replace the Soviet ruble, after five decades of domination by Moscow.

The Estonian center-right government, which implemented a strict economic policy since before the global crisis, believes that the euro changeover is advantageous and is a logical step for a small open economy to the world.

“The International Monetary Fund indicates that the changeover to the euro will accelerate the growth between 0.15% and 1% per year over the next two decades,” said the Estonian minister Economy, Juhan Parts. “Our foreign trade is done by 80% within the European Union. The common market is advantageous to us all, for Estonian entrepreneurs can sell their products more easily, creating jobs,” he added.

Estonia, called the “Baltic Tiger” because of its rapid transition from a centralized to a market and its impressive growth, and had tried to integrate the euro zone in 2007 but was prevented by high inflation.

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