European Union

EUROPEAN UNION Brussels, 27 June 2004 COMMUNIQUE At the request of the Estonian authorities, the ministers of the euro area Member States of the European Union, the President of the European Central Bank and the ministers and the central bank governors of Denmark and Estonia have decided, by mutual agreement, following a common procedure involving the European Commission and after consultation of the Economic and Financial Committee, to include the Estonian kroon in the Exchange Rate Mechanism II (ERM II). The central rate of the Estonian kroon is set at 1 euro = 15.6466 kroon. The standard fluctuation band of plus or minus 15 percent will be observed around the central rate of the kroon. Following a careful assessment of the appropriateness and sustainability of Estonia’s currency board, it was accepted that Estonia is joining the exchange rate mechanism with its existing currency board arrangement in place, as a unilateral commitment, thus placing no additional obligations on the ECB. The agreement on participation of the kroon in ERM II is based on a firm commitment by the Estonian authorities to continue with sound fiscal policies, which are essential for preserving macroeconomic stability, for supporting an orderly and substantial reduction of the current account deficit, and for ensuring the sustainability of the convergence process. The authorities will closely monitor macroeconomic developments together with the responsible EU bodies, and they will strengthen the fiscal stance if warranted. To help reduce the external imbalance and contain it at a sustainable level, they will take the necessary measures to contain domestic credit growth and ensure effective financial supervision, and they will promote wage moderation. Structural reforms aimed at further enhancing the economy’s flexibility and adaptability will be implemented in a timely fashion so as to strengthen domestic adjustment mechanisms and maintain the overall competitiveness of the economy. The compulsory intervention points in the exchange rate mechanism will be communicated by the ECB and the Bank of Estonia, in time for the opening of the foreign exchange markets on 28 June 2004. .

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Estonia in the Eurozone – a Strategic Success
oswCommentary issue 53 | 20.06.2011 | Centre for eastern studies Estonia in the eurozone y – a strategic success ENTAR m Paweł Siarkiewicz Com es C The adoption of the euro in January 2011 topped off Estonia’s integration policy. In the opinion of Estonian politicians, this country has never been so secure and stable in its history. Tallinn sees the introduction of the tudies euro primarily in the political context as an entrenchment of the Estonian s presence in Europe. The process of establishing increasingly close rela- tions with Western European countries, which the country has consisten- astern tly implemented since it restored independence in 1991, has been aimed e at severing itself its Soviet past and at a gradual reduction of the gap existing between Estonia and the best-developed European economies. The Estonian government also prioritises the enhancement of co-operation as part of the EU and NATO as well as its principled fulfilment of the Centre for country’s undertakings. It sees these as important elements for building the country’s international prestige. y The meeting of the Maastricht criteria at the time of an economic slump ENTAR m and the adoption of the euro during the eurozone crisis proved the deter- mination and efficiency of the government in Tallinn. Its success has been Com based on strong support from the Estonian public for the pro-European es C (integrationist) policy of Estonia: according to public opinion polls, appro- ximately 80% of the country’s residents declare their satisfaction with EU membership, while support for the euro ranges between 50% and 60%.
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