Estonia, EU – Baltic States, Financial Services

Andres Lipstok.

On Friday he visited his home town Haapsalu and the city government hall was so full of people that extra chairs had to be brought for all those interested in what the central bank governor had to say.

Lipstok admitted at the meeting that while entrepreneurs are likely to attempt raising prices when the kroons would be exchanged for the euros, he stated that the state authorities are already monitoring the prices of goods.

According to the official forecast, the implementation of the euro will bring a 0.1-0.3 % price increase under the disguise of rounding the difference in exchange rates. Local service companies can play with prices most, but also catering establishments.

Lipstok noted that in a bit more than two weeks it will become clear whether Estonia will be one of the states using the euro next year or not. On May 12, the European Commission convergence report will be made public.

“We have fulfilled the measurable conditions but joining the euro area depends on the wish and will of European structures,” said Lipstok. “In May it will be clear whether we are suitable in the eyes of evaluators.”