Estonia joins volatile European single currency – the Euro.
Saturday, 01 January 2011
Estonia joins volatile European single currency – the Euro. As from 1 January 2011, Estonia became the latest addition to the countries and 17th members to adopt the European Monetary Union as its financial and monetary policy. As such Estonia today took into use the Euro as legal its tender.
The Estonian krone will be used in parallel with the euro over the next two weeks, and it is being required that the Krone be exchanged the Euro as there after only the euro would be accepted as a legal tender.
Estonia has pursued a restrictive monetary policy, since the Krone was introduced in 1992. The Krone then was tied to the German Deutschmark, and from 2002 when the euro replaced the Germans currency, the Krone was tied to it.
According to opinion polls commissioned by the government about half of those polled recommended a transition to the euro. According to a survey made for the Eurosceptics in Estonia only 34 percent supported the reform to adopt the EUR, while 52 percent remain sceptical.
On the whole, Estonia has pursued a market-oriented financial policy with minimal debt, balanced state budget and a flat tax that has given confidence to the west and that has facilitated the country's goal to get into during the western economic umbrella.
This economic policy has not resulted in success for all. Those who did not have the ability to embrace the new age and its possibilities were overthrown in misery. Some broader appeal for support of the community tens of thousands of poor did not exist during the first years of independence.
Estonia has worked determinedly hard to get quick access to the western communities such as the EU and NATO, which had a collective support towards the great neighbour. It has also been approached to become too dependent on Russian energy and trade with Russia.
By Scancomark.se Team