Estonia set for euro adoption

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.

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