Estonia 'in eurozone by 2011'

Estonia could soon adopt the euro as its national currency, a member of the European Commission has said.

Commissioner for monetary affairs Joaquin Almunia commented that the Baltic country's aim of adopting the euro by the start of 2011 is achievable.

Discussing the level of public debt cuts, he disagreed with those who said these have been occurring too slowly, stating: "I believe that the government is doing what it needs to be doing."

He said to "overreact" in monetary policy matters would lead to the country not achieving the growth it needs.

The prospect of Estonia joining the eurozone swiftly may encourage those thinking of buying property there, as the move may help increase confidence in its economic stability.

In turn, this could encourage more investment and help increase property prices.

Last month, Estonia's central bank Eesti Pank issued a statement saying that the economic prospects were improving, with the rate of decline in industrial output and exports slowing, Bloomberg reported.

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