Estonia, EU – Baltic States, Financial Services

Joaquin Almunia.

The Commissioner disagrees with the claims that the Estonian Government is too slow in making budget cuts. "I believe that the Government is doing what it needs to be doing," said Almunia. "If you overreact in monetary policy, you might also kill the hopes for new growth. Estonia needs growth," he emphasised.

Almunia did not want to speculate over the stability of the exchange rate of the kroon, but noted that the developments with Latvian lats will affect it. "I do not want to speculate over negative scenarios, we are working in the name of positive scenarios," he explained.

According to the European Commission, Estonia is one of seven EU Member States the budget deficit of which will remain within three per cent of GDP. Observers believe, however, that it is yet early to make any generalisations on these seven countries.