Real Estate & Currency Exchange News in Estonia from Propertyshowrooms.com

Estonia set for euro adoption

Thu, 15 Jul 2010 00:00:00 GMT

Investors may be interested to learn that Estonia has been given the all-clear to enter the eurozone next year and adopt the single currency.

The European Union finance minister gave the country the final approval to become the 17th eurozone member last Tuesday (July 6th).

Potential property investors in the region are sure to see the news as a much needed boost for the eastern European destination whose economy faltered after falling into recession during the financial crisis.

"The euro … by itself does not make us smarter or increase our productivity," Reuters reported the central bank as saying in a statement.

"However, joining the euro zone means that trust in the Estonian economy is growing."

Politicians agreed that the exchange rate should be fixed at 15.6466 kroons to one euro.

Earlier this year, the International Monetary Fund predicted that thanks to a low budget deficit of 1.7 per cent, Estonia was on target for euro adoption by 2011.

Estonia 'likely to be first Baltic eurozone member'

Wed, 16 Dec 2009 00:00:00 GMT

Estonia will be the first of the Baltic states to become a member of the eurozone, it has been predicted.

Writing for the New York Times, Reuters columnist Paul Taylor said many economists believe that all three nations should be admitted now.

He noted that the argument for this is that their combined gross domestic product would only amount to one per cent of the eurozone and therefore could have little negative impact.

Moreover, Mr Taylor noted that there have been complaints that the convergence rules were applied more strictly when denying Lithuania membership in 2007 than in granting it to Italy and Belgium in 1999.

He concluded that EU authorities will only let Estonia in "to avoid creating any precedent for larger newcomers".

Such a situation could mean that Estonia's property market benefits from the economic stability of eurozone membership and takes investor market share away from Latvia and Lithuania.

Earlier this year, EU commissioner for monetary affairs Joaquin Almunia said the Estonian government was doing the right things to ensure the economy meets its convergence criteria.

Estonian kroon can withstand the Latvian currency crisis

Thu, 20 Nov 2008 00:00:00 GMT

High Estonian official say that although rumours of upcoming devaluation of the Estonian kroon have strengthened recently, there is nothing to be afraid of...

Finance Minister: euro would save Estonia

Wed, 3 Sep 2008 00:00:00 GMT

Estonian Minister of Finance Ivari Padar is convinced that euro would give Estonia more benefit than any kind of tax amendment, aripaev.ee writes...