Economics, Estonia, EU – Baltic States, Financial Services, Investments

“We see very high moral risks involved in the Euro-bonds,” said Ansip at the Government press conference on Thursday.

According to him, it would be difficult to explain why the should countries that have kept their financial affairs in order – and can thus get funds from financial markets at cheaper prices – sacrifice anything for the countries where financial matters are not in order.

He added that if all Euro area countries would be made dependent on one single interest rate, some countries would see the interest rate increase from the current level while others would see theirs fall. “We instinctively presume that in the case of Estonia that would mean a deterioration in the situation,” explained Ansip, but emphasised that this is merely a theoretic possibility as in practice Estonia involves very little money from the financial markets.

The Estonian PM estimated that the only solution to the European debt crisis could be found in cutting costs, executing structural reforms and increasing tax revenue.