Tuesday May 24, 2022

Estonia hit a deficit and its hopes for the euro rose in 2011

Estonians who joined the Union in the same way as in 2004 can pay in euros for five years. The increase in statistics last year had a deficit of 1.7 percent of GDP in the Baltic countries. In order to join the prestigious plateau club with the single European currency, it is necessary to keep the deficit below three percent.

“In 2009, the general government deficit remained in the dog set by the Maastricht Treaty,” the statisticians said.

The result thus fulfilled the forecasts of the local Ministry of Finance. But Reuters analysts expected the deficit to be more than two percent of GDP.

Maintaining the deficit is just one of the five basic conditions for adopting the euro. However, the Estonians were first most concerned about this criterion, so now expect that their efforts to adopt a single currency should not be called anything.

Statisticians said that in the last quarter of last year, total budget spending fell by 17.5 percent. And disputes over the entire budget have increased nine percent of gross domestic product. In 2008, the country was hit hard by the economic recession, when the economy fell by 14.1 percent.

For this year, the country estimates a deficit of vi at 2.2 percent of GDP. And in the coming years he wants to drill the budget into a surplus, in 2013, according to government, it should reach 0.2 percent of GDP.

Estonia wanted to adopt the euro in 2007, but eventually postponed it due to high inflation.

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