Economics, Estonia, EU – Baltic States, Financial Services

Poul Nyrup Rasmussen.

Rasmussen stated that in the context of an economic decline, the objective to become a part of the euro area by the year 2011 is unrealistic and efforts in this direction only make the situation worse.

"I think that it would not be reasonable for Estonia to strive for acceding to the euro area in 2011," said Rasmussen. He noted that Estonia will not be able to, as its budgetary deficit would have to stay below 3%, adding that none of the countries in the euro area apart from Luxembourg will comply with this requirement this year and Germany already has a higher budget deficit.

"How do you imagine having everyone else with a major deficit while Estonia alone able to avoid it," asked Rasmussen. "It will not be possible. If you will hold on to the objective of adopting the euro in two years, by 2011, you will risk extending the economic decline by another two to three years," he explained.