Estonia ‘still on track'

Joining the euro would make the Estonian economy more stable, according to the governor of the country's central bank...

Speaking at the Cities and Rural Municipalities Day, Andres Lipstok explained that the single currency would improve the nation's standing in the world.

"The euro would provide our economy and people with additional feeling of security and increase Estonia's credibility in the eyes of investors whose opinions also impact Estonia's economic situation," he said.

Despite the recent turmoil, Estonia is still on track to join the single currency in 2010, Mr Lipstock added.

However, the country will have to work hard to ensure that it meets requirements relating to budget deficit, he warned.

Earlier this week, Veikko Maripuu, founder of investment firm Redgate Capital, told Business New Europe that there are still many strong firms based in Estonia, despite the current downturn.

He claimed that the reaction has been one of widespread panic, and this was not justified in all cases.

Source: www.Kms.ee