Analytics, Economics, Estonia, EU – Baltic States

The newspaper notes that other countries – such as Greece – could learn about budgetary discipline from Estonia.

“Since the Greek problems arose last summer, it has been stated that the country could shed its problems by devaluing if they had their own currency. There is a better option. Estonia, Lithuania and Latvia are examples of how to solve the budget crisis without devaluing the currency,” writes the WSJ.

The newspaper describes how the monetary committee system works in Estonia and notes that the country’s economic success is due to its stable fiscal policy. “In other words – Estonia and Lithuania gave up their monetary autonomy more than a decade ago and have been in a better situation by choosing a stable currency that cannot be subject to politicians’ arbitrariness.”