Analytics, Economics, Estonia, EU – Baltic States

Andrus Ansip.

Ansip also underlined how some widely criticized measures, such as the budget cuts and the increase in the share of investments in the State budget, are between the main reasons of "this success", especially if we consider how the the share of investments in the budget in Estonia is twice bigger if compared to average of EU Member States.

The Premier seemed optimistic also about the development of the whole Estonian economy as, he said, an increase in the flow of foreign direct investments is already happening: thanks to the low cost of Estonian workforce some Finnish enterprises started to deplot the production on the other side of the sea, helping Estonia to breath a bit better. But as lately discussed by the Economist while analyzing the Irish crackdown, if a cheap labor market is a prerogative for a successful and rapid growth, the risk of employees starting to ask for better work conditions, guarantees and salaries is always behind the corner with all the dangers this might represent.

The Head of the Estonian Government also touched the sensitive subject of banking, explaining how the sector should not be considered "at risk" as because of its well functioning as because of the renewed trust of people towards financial institutions that he reads behind the increase of deposits.