Analytics, Estonia, Financial Services

Toomas Hendrik Ilves.

“Hence we only have to hope that the revenue will be high enough to cover Estonia’s budget spending,” said the President in an interview to the National Broadcasting news programme.

He added that during the year Estonia has to have enough courage to cut spending where painful cuts have to be made.

Ilves responded to criticism regarding his statement at the end of last year that there is no risk of a crisis that he believed the outlook of the Bank of Estonia and he had no cause to question it. However, he noted that time will tell whether the Government has acted in the current difficult situation in an adequate manner and cut the State budget volume sufficiently. “Luckily we have enough reserves accumulated in the past 6-7 years so that we have some breathing space in 2009,” noted the President, remarking that Latvia does not have these necessary reserves.

“I wish for people to maintain their optimism during difficult times as well,” said Ilves, adding that Estonia has been through much more difficult years than it is facing today.