Estonia could see rise in foreign investment

Foreign investment in Estonia could climb as the country's Government strives to reduce its budget deficit, it has been claimed.

If the country meets European Union requirements for entry into the euro it could promote economic stability, something that would help make it desirable for potential investors.

According to CompaniesandMarkets.com the Government is attempting to lower its fiscal shortfall to within three per cent of GDP by privatising its "public obligations".

The report commented: "Our core view is that broad political consensus towards accelerated euro adoption should provide an anchor for economic policy and help prevent any major parliamentary ructions through 2010."

A spokesperson for German foreign minister Guido Westerwelle recently told Reuters that Mr Westerwelle had said to Estonian Prime Minister Andrus Ansip during a stopover in the country that "Estonia is on a good way for euro introduction in 2011".

In an article for the New York Times, Reuters columnist Paul Taylor said that Estonia will be the first Baltic country to join the euro.

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