Estonia Joins Euro to Attract Foreign Direct Investment Benefit - Eurozone Fdi Advantages- Euro Titanic & Latvia Risks

Topics: Estonia, European Union, Latvia Pages: 6 (1788 words) Published: February 8, 2011

Estonia Joins Euro to Attract Foreign Dir…

Estonia Joins Euro to Attract Foreign Direct Investment Benefit - Eurozone FDI Advantages- Euro Titanic & Latvia Risks 73 By billy austindillon

Estonia Joining Euro to Attract Foreign Investment
The day has come. January 1, 2011 and Estonia has officially joined the Euro zone. There are mixed emotions with many worried about the debts of Ireland, Italy, Portugal, Greece and Spain threatening Estonia. In these days of market hysteria over the great European debt crisis Estonia has stood tall as a success story. Estonia's Prime Minister Andrus Ansip sees a positive for Estonia joining the Euro to attract Foreign investment can expect to draw increased foreign investment. Ansip sees Estonia joining the Euro would also benefit the other Baltic nations Latvia and Lithuania. Other key nations in the Baltic region are Sweden and Finland. The Baltic zone is in recovery mode after it suffered a brutal slump that has seen the IMF give loans to Latvia and the three nations all apply severe austerity measures. Currently we have a ring of fire encircling the PIIGS below. It highlights the dichotomy of Europe as nations look to join the pan-European currency while others are barely hanging in there such as Greece, Spain, Portugal and Italy. We even had France’s little Romeo Sarkozy threatening to leave. Estonia joining Euro to attract foreign investment is an obvious bonus to the EU in its currentfinancial contagion crisis. Personally there is the worry of being aligned to another huge power given Eesti's proud resolve for independence. However the EU is not the Soviet Union. One hopes Estonia is not joining a European Titanic as many suggests. One thing we do know is the Estonian people have shown they can overcome incredible adversity. One suspects they will not need the Titanic lifeboats that Ireland, Greece and Portugal have been thrown.



Estonia Joins Euro to Attract Foreign Dir…

Estonia Joins The Euro Source:

The Baltic Nations
The Baltic nations historically have banded together, a necessity given their locale, ethnicity and small populations. If we go back to the break down of Soviet Union the hands across the Baltic was a significant turning event in history. Estonia's Prime Minister Andrus Ansip told the Lithuanian newspaper Lietuvos rytas.'I hope that the euro in Estonia will benefit both the Latvian and Lithuanian economies, and will make the whole region more attractive to foreign investments.' Ansip added 'I hope that investors will see Lithuania and Latvia joining the euro zone soon.'

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T he New Estonian Golden Age: How Estonia Will Rise To Be One Of Europe's Five Richest Nations Amazon Price: $5.99 Foreign trade relations of Estonia: T HE INFLUENCE OF WORLD T RADE ORGANIZATION (WTO) ON T HE ECONOMY OF ESTONIA

It is anticipated that Latvia and Lithuania will join the Amazon Price: $61.99 List Price: $62.00 euro currency bloc in 2014. The Baltic partners have much larger budget deficits than Estonia. One must remember that the Estonian people are related to the Finnish people by ethnicity, both being uralic. This is a huge misconception when discussing the Baltic Republics. There is much truth in the recognition of Estonia being the shining beacon for the region. The three Baltic nations all saw their economies contract over ten percent in 2009. The global financial crisis was particularly damaging to the small Baltic nations given the European hot money that had pushed the Baltic zone too fast too quickly. The fleeing money led to a Baltic credit crunch. The battle weary and conservative Estonia though had strong reserves and was able to control its budget deficit. Estonia’s population quickly adopted...
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