Estonia hopes to become 17th country to join euro zone

| May 12, 2010 | 0 Comments
Estonia hopes to become 17th country to join euro zone

The European Commission today gave the Baltic republic of Estonia the go ahead to adopt the euro on 1 January 2011.

The announcement comes at a time when many nations in the euro zone are implementing tough austerity measures in order to cut their budget deficits.

A €500 billion (£433 billion) emergency rescue package was announced earlier this week, designed prevent the Greek debt crisis from spreading to other euro zone nations.

However, despite this, the single currency’s future remains uncertain, according to many analysts.

Estonia, meanwhile, is said to have healthy public finances but its entry into the euro zone still requires the approval of all 27 EU member states, 16 of which are in the euro zone.

The latest EU estimates show that Estonia will post a public deficit equal to 2.4 of GDP this year and debt of 9.6% of GDP.

Estonia, a country of 1.3 million people, had hoped to join the euro in 2007 but was prevented from doing so by high inflation.

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