Central bank: Estonia is able to meet eurozone criteria
21.10.2009, 11:54
Estonia is able to meet all Maastricht criteria and adopt the euro in 2011, said the central bank today.
According to the bank, the key risks restricting the fulfilment of the criteria is the growth in the local government budget deficit and poor collection of non-tax income.
The bank said that while Estonia had improved its budget situation by various temporary measures, it was necessary to take a good look at the spending level of upcoming years to ensure budget balance in the long term.
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The bank warned that if Estonia fails to adopt the euro in 2011, its economy would recover at a more slower pace.
The central bank said that while several key export industries were showing signs of recovery, it will be a long time until the end of the crisis. "It is also necessary to bolster confidence in our region and in the Estonian economy in particular," said the bank in its statement.
At the end ofthe year the bank expects employment rate to fall at a much slower pace than at the beginning.