The stability of the Estonian economy dates back to 1992 when the country, after regaining independence, decided to peg its currency to the German mark. From those days on, the country's economic development has been significant, but the currency's exchange rate has stayed the same. As of January 1, 2011 Estonia is a member of euro area, which will further enhance the country's trade and tourism.
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A corner-stone of Estonian stability is the balanced budget policy, pursued persistently over the years by various governments. This has given Estonia a national debt which is among the lowest in Europe, and enables appropriate fiscal reactions even in turbulent economic times. Also, the banking system provides a robust structure over business cycles. The leading Estonian banks are owned by banks domiciled in the Nordic countries.
Since 2004, Estonia has been a member of the European Union (EU) and NATO. Being part of these organisations, Estonia can offer stability to its investors, even long-term. Importantly, a vast majority of the Estonian people supported the membership of these two international organisations. Due to its history, Estonia's political relations with neighbouring Russia have been more complicated, but business relations have stayed strong. |
