Estonia would like to join the euro zone because it would support the growth of our competitiveness, economic stability, and employment, thereby also ensuring an increase in the quality of life. The euro will also increase the confidence of foreign investors in the Estonian economy, and investing money in Estonia will become easier and safer.

Maastricht criteria

In order for Estonia to join the euro zone, it is required to successfully fulfil the Maastricht criteria:

EXCHANGE RATE

The country must, for at least two years, participate in the currency exchange rate mechanism ERM II and keep the exchange rate of its currency stable against the euro without serious problems. The Member State may not devalue the exchange rate fixed in ERM II on its own initiative. Estonia joined the ERM II on 28 June 2004 and has kept the Estonian kroon on a steady exchange rate with the euro (1 EUR = 15.6466 EEK).

European institutions approved the Estonian Monetary Committee’s suitability for the ERM mechanism. This was essential for the stability of Estonia’s economy, as it allowed it to retain the structure of the Monetary Committee, which has proved to work well, until accession to the euro zone. The fixed exchange rate system helps Estonia comply with the standard exchange rate fluctuation band.

PRICE STABILITY

A state’s annual inflation rate averaged over one year must not exceed the average of the three best-performing member states in terms of price stability by more than 1.5 percentage points. Estonia fulfilled the Maastricht price stability criterion in November of 2009, when the 12-months average harmonized consumer price index (HICP) was -0.7% (the reference value of the criterion was 1%).

INTEREST RATES

The interest rate of at least 10-year kroon-denominated government bonds must not exceed the average of the three best-performing Member States in terms of price stability by more than 2 percentage points. Estonia lacks this instrument for assessing the fulfilment of the criterion, but the European Commission stated in its convergence report that, despite this, Estonia does not have problems with meeting the interest rate criterion.

SUSTAINABILITY OF PUBLIC FINANCES

The general government deficit must be lower than 3% of GDP. The general government debt must be lower than 60% of GDP. For years Estonia has followed a balanced budget policy and kept a low debt burden. In 2009 the government sector’s budget deficit was 1.7% of the GDP, which is considerably smaller than the Maastricht criteria’s 3% limit. The debt burden of the Estonian government sector is the lowest among EU member states, and thus there are no problems with fulfilling this criterion. In 2009, the debt burden of the Estonian government sector posted 7.2% of GDP.

2010 Plan

March-April – The European Commission and the European Central Bank conducted a regular assessment to ascertain Estonia's readiness for the adoption of the euro.

12 May – The European Commission unveiled the convergence report for 2010, in which Estonia’s readiness to join the euro zone received a positive assessment. The Commission recommends that Estonia adopt the use of the euro because Estonia fulfils all the economic criteria.

8 June – The Council of Economics and Finance Ministers of the EU (ECOFIN) will meet to discuss Estonia’s compliance with the euro criteria

18 June – The European Council will discuss Estonia's eligibility for joining the euro area

13 July – ECOFIN should make the final decision regarding Estonia’s accession to the euro area and confirm the exchange rate as of 1 January 2011.

Ever since it was put into circulation again, the Estonian kroon has been pegged to another currency—first the Deutschmark and later the euro. Therefore replacing the kroon with the euro will not bring about any major economic changes. However, adopting the euro will reduce transaction fees and risks that could threaten Estonia as a country with a small fixed currency. The Estonian kroon has had the unchanging exchange rate 1:15.64664 since 1999.

As of 2010, the euro is the common currency of sixteen European Union member states: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.

At the beginning of 2011, Estonia hopes to become the 17th EU member state to join the euro zone.

The Estonian euro coin will be adorned with the outline of the country of Estonia:

Additional information:

Estonian EuroWeb: euro.eesti.ee
Estonian Economy at a Glance
Summary of the 2010 Convergence Programme of Estonia

Foreign Minister Urmas Paet stated that accession negotiations with the Organisation for Economic Co-operation and Development, which began in 2007, have ended. “Estonia is achieving its goal by acquiring full member status in the organisation at the end of 2010,” said Foreign Minister Paet. Foreign Minister Paet said that OECD member states are each leaders in their own region. “The invitation to join the OECD recognises the innovativeness of Estonia’s development. As an OECD member, Estonia will have the opportunity to participate as an equal partner in discussions and share its experiences, while also learning more than ever before from the experiences of others,” said Paet.

The goal of the OECD is to support the expansion of general world economic development and world trade. The primary means for achieving these goals is close co-operation among member states, as well as utilising dialogue, consensus, and lessons learned from the better experiences of others. The OECD addresses various sectors (such as education and environmental issues) with comprehensive analyses and gives recommendations for formulating policies in the given area. In addition, economic reviews of the member states are compiled on a regular basis. As part of the accession process, a thorough economic review of Estonia was published in 2009.

The OECD press release can be viewed here:
http://www.oecd.org/document/57/0,3343,en_2649_201185_45159737_1_1_1_1,0...

SPOKESPERSON' S OFFICE
+372 637 7654
pressitalitus@mfa.ee

Border controls will be carried out in accordance with the Schengen Borders Code and State Borders Act.

"BACH IM SPIEGEL"

Concert by

ANDRES UIBO organ (Estonia)	AARE TAMMESALU cello (Estonia)

PROGRAMME:

1
Johann Sebastian Bach (1685-1750)
Passacaglia in C Minor BWV 582 (BWV 582/1) for Organ (1706-1713)
 
2
Andres Uibo (1956)
"Bach im Spiegel" for Cello and Organ (2005)
 
3
Artur Kapp (1878-1952)
"Prelude" for Cello and Organ (1918)
 
4
Arvo Pärt (1935)
"Trivium" for Organ (1976)
 
5
Tõnu Kõrvits (1969)
"Wanderer's Song " for Cello (2003)
 
6
Andres Uibo
"And I heard.... "
2nd movement from "Apocalypsis Symphony" for Organ (2003/2004)
 
7
Johann Sebastian Bach
Sonata No.1 in G Major BWV 1027 for Cello and Organ (1720?)
Adagio
Allegro ma non tanto
Andante
Allegro moderato

More information: http://www.specsnarts.gr/index.php?id=60

Due to the fingerprinting requirement, starting on 29 June 2009 it has been necessary for all passport applicants to personally visit a foreign representation of Estonia or a location of the Citizenship and Migration Board while in Estonia. The Estonian representation closest to Cyprus is located in Athens, and therefore the Foreign Ministry is sending its consular mission to Cyprus so that Estonian citizens can file their passport applications without having to travel to Athens.

The consular official will be working on 26 February 2010 at the Estonian Honorary Consulate General in Nikosia:

5 Themistocles Dervis Street
Elenion Building
Nikosia

We ask that you register to see the consular official beforehand at the phone number +357 22 555 000.

Passports that have already been applied for can also be picked up later at the Estonian Honorary Consulate General in Nikosia.

Additional information about honorary consuls in Cyprus: http://www.vm.ee/?q=en/node/6549

In accordance with the Consular Act, consular missions are sent to nations where Estonia lacks a foreign representation but there is a justified need for consular services.

VÄLISMINISTEERIUMI PRESSITALITUS
637 7654
521 3085
pressitalitus@mfa.ee

to the concert of Estonian folk-jazz duo

Tuule Kann – Jaak Sooäär

at the 8th European Jazz Festival in Athens,

on Thursday 29th May 2008 at 21.00 – 22.00
in the City of Athens Technopolis Cultural Centre
(Pireos 100, Gazi)

Free entrance

More information on www.myspace.com/tuulekannjaaksoor