Analytics, Economics, Estonia

The Prime Minister Andrus Ansip

The Prime Minister emphasized that the European Commission has estimated that the steps taken by Estonia thus far in reinvigorating its economy have been reasonable. He pointed out that the relevant measures were budget cuts and increasing the share of investments in the State budget. According to Ansip, the share of investments in the budget in Estonia is twice as big as the European average.

The Head of Government noted that Estonia is already seeing an inflow of more foreign investments – for example, a number of Finnish enterprises have moved their production facilities here. This is on one hand contributed to by the cheaper labor market here and on the other hand by Estonia's firm plans to accede to the euro area.

Ansip concluded that the Estonian banking system is also working well and the local tax-payers do not need to boost the banks with their funds. He added that the deposits in banks are growing and that indicates that people are not afraid to use their savings.