Savisaar: Estonians are paying a high price for the euro

29.12.2010, 11:36

Euro is a massive sacrifice for Estonians which is being forced upon them by Andrus Ansip's government, says Edgar Savisaar, Mayor of Tallinn and leader of the main opposition party in an interview to German publication Zeit Online.

Speaking of Estonia's economy, Savisaar said that Estonia has lost its position as a low-cost production base to China and provided the recent bankruptcy of Kreenholm textile industry, as an example. He added that Estonian state should guide the country's economy like China.

However, in the opinion of Savisaar, it is difficult to revive the Estonian economy since most of its businesses are foreign-owned and profits are pouring out of the country.

"VAT rate raise, increase of consumption taxes and budget cuts have weakened Estonia's economy and affected the people's financial situation," said Savisaar.

"I think that sacrifices that Estonian people have been forced to make without their consent have been too big and Estonia is rushing to the eurozone. Compare it, for instance, with Poland that has been less affected by the crisis and is adopted a wait-and-see approach towards the eurozone," said Savisaar.

According to the opposition politician, the government is cynically using the euro adoption to introduce a social and economic policy that has nothing in common with European values. "This is designed to make some people even richer than they are today. At the same time it is speeding up the impoverishment of the middle classes and low-income people.

According to him, at the time when the government refuses to see and hear those who are most affected, it is the City of Tallinn that has come to their rescue, offering them food aid.