Estonia tries to manage without EU’s help

Currently Estonia isn’t intending to get money from EUR 50 bln credit line for Eastern Europe, Ivari Padar, the Minister of Finance told aripaev.ee. 

“We can handle things here. Let’s keep our flag high! If we act in a disciplined way, keep our consumption under control on the state level as well, don’t spend that much in the difficult time, then I’d like to believe we don’t have to use the credit line. Currently the support money is regarding Latvia and Hungary. But it’s obvious that continuously I don’t rule out another negative supplementary budget,” Padar said.

Read more here from BBN

It’s better to do business in Estonia than in Japan or France

The business climate in Estonia is better than in Japan, France of Portugal, according to the magazine Forbes, Postimees.ee reports.

For the fourth year Forbes listed countries where it’s best to make business. It appears from there that although Estonia has dropped seven places in a year, the business climate in Estonia is still better than in France, Portugal or Japan.

“The economy benefits from strong electronics and telecommunications sectors and strong trade ties with Finland, Sweden, and Germany,” Forbes writes.

The current government has pursued relatively sound fiscal policies, resulting in balanced budgets and low public debt. Rapid growth, however, has made it difficult to keep inflation and large current-account deficits from soaring, putting downward pressure on the country’s currency.

Estonia’s economy slowed down markedly and even fell into recession in mid-2008, primarily as a result of an investment and consumption slump following the bursting of the real estate market bubble, Forbes writes.

Estonia is on the 17th place. First place belongs to Denmark and the second to US.

Source: BBN