Estonia’s euro adoption is a justified decision, premiere says


Estonia’s decision to adopt the euro as its currency two years ago has justified itself as the country’s exports, foreign direct investments as well as corporate profits have jumped, Estonia’s premiere Andrus Ansip said in an interview to Bloomberg.

“Lack of currency risk has certainly helped to increase export volumes as two thirds of (Estonia’s) exports goes to European Union member states,” Anspip said.

In 11 months in 2012, Estonia’s export volumes were up by 5.2%. FDI showed an annual increase of 10% in Q3, whereas corporate profits showed a rise of 14%.

Ansip said that Estonia can be more optimistic about its future compared to other EU nations. “Although last year’s budget could have been in deficit after the surplus in 2010 and 2011, the deficit remains much smaller compared to the government’s estimate made in last August, which was 1.2% of GDP,” Ansip said. He added that it was not ruled out that there could have been a budget surplus in 2012.

Source: Sormunen R. (2013). Ansip: euro on end õigustanud. Äripäev Online, 1. veebruar.