Euro in Estonia: a Quick Chronology
It is official and unstoppable. Estonia is going to became the 17th member of the Euroclub. On the first of January, kroons will be part of the history and Euro will write the economic future of the country.
Six years later of the country got its precious EU membership card, this other massive change is considered to be another step for a full European integration, but the path have not been easy.
Estonia was the only country, out of nine, that satisfied the conditions for an euro area membership as the European Commission published in May . Bulgaria, the Czech Republic, Latvia, Lithuania, Hungary, Poland, Romania and Sweden still have to wait.
It is also remarkable that the Baltic State has become the third former Eastern country in achieving the Euro after Slovakia and Slovenia.
To join the Eurozone, candidates must show that their public finances are in good shape and the exchange rate and prices are stable. Their interest rates must also be low, and national legislation on monetary matters must be in line with EU law.
And Estonia matched all the requirements – even if this seems not to matter too much for other EU countries as Estonia is going to be the euro´s second-smallest economy, just ahead of Malta, in the whole Euro zone..
The first step in the historical trajectory of the last months started in March, when the President of the European Commission, Jose Manuel Barroso said to the press, “Estonia is on track and moving in the right direction”.
It was an unofficial step, but still important.
The following stage came in May, when the European commission backed the adoption affirming that Estonia fulfilled all the requirements needed.
Three weeks later, it was the Euro Parliament turn. The approval by the Assembly’s economic and monetary affairs committee in Brussels meant that the adoption was less than 7 months away.
On the 8th of June it was the turn of the finance ministers of the Euro zone and during a meeting in Luxemburg they backed the incorporation. The 16 governments of the Euro region have the formal power over the Euro entry.
On the 17th of June it was the government leaders who supported the incorporation and yesterday the formal invitation and no-returning point was met. Welcome to the Euro, Estonia.
The crisis in Europe also rosedoubts about the adoption timing. With the Euro suffering a free falling in the international markets, it was unclear who needed who.
And some experts said that Estonia needed the Euro as much as the Euro members needed Estonia.
Now, the future of Estonia goes along with the future of the Euro.
