Estonia in EMU on first January 2011

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Estonia in EMU on first January 2011

Postby ART » Sat Jan 30, 2010 9:43 am

http://www.estonianfreepress.com/2010/0 ... o-estonia/

Will 2011 Bring Euro to Estonia?

Published by Emilio Spanu on Jan 12th, 2010

Further confirmations are coming and the 1st January 2011 seems most likely day the day Estonia might *finally* see the dream of being part of the Euro zone becoming true.

Olli Rehn, responsible for the Enlargement of the European Commission, said to Reuters that the European Commission will evaluate if Estonia is ready to join the Euro zone in the first part of 2010 also adding that “the next likely candidate is Estonia”.

Public finances are stabilized and this confirms that Estonia is almost ready to become the seventeenth country to use the common European currency. Rehn also pointed out that “Estonia is rather close, but we will have to ensure that all the rules are respected, that the (EU) treaty is respected, and we will return to this matter in the coming spring.“

If the evaluation will be positive and the Estonian entrance will be backed by all the 27’s EU foreign ministers, Estonia will then formally adopt Euro starting from January 1st 2011.

Estonia is now going through a period of recession, that comes after the positive time that followed the entrance of the country in the European Union back in 2004.
Estonians are divided about the advantages of joining the euro zone but a small majority of people backs the process. The government hopes to enter as it expect that the adoption of the Euro could boost the economy, attracting foreign investments and so helping the country to overcome the recession.

As AFP/LETA reported, Estonian kroon is pegged to Euro at a rate of 15.6466 to 1 euro. The IMF said this was a “moderate overvaluation” but it could be solved without changing the rate. The IMF added that there is the possibility to peg again the kroon to the euro at a more depreciated level but, even if it could offer some advantages, it might be disruptive for both Estonia and the entire region.
Last edited by ART on Wed May 12, 2010 10:13 pm, edited 1 time in total.
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Re: Perhaps Estonia in EMU on first January 2011

Postby Jes » Sat Jan 30, 2010 12:59 pm

Thanks for sharing.

It would be interesting, although now we are running in an "uncertainty period" due to crisis and things like that... Estonia had a huge inflation... Let's hope the best! :o

The idea of getting new countries (and coins/banknotes) within the euro-area fascinates me. :D
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Re: Perhaps Estonia in EMU on first January 2011

Postby Elmo » Sat Jan 30, 2010 1:52 pm

Jes wrote:Estonia had a huge inflation... Let's hope the best! :o

Actually, it is thanks to the economic crisis that Estonia can join the euro. They have had deflation (or minor inflation at best) the last 2 years, so they now meet the inflation criterium of max. 2%.
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Re: Perhaps Estonia in EMU on first January 2011

Postby Jes » Sat Jan 30, 2010 5:54 pm

Elmo wrote:
Jes wrote:Estonia had a huge inflation... Let's hope the best! :o

Actually, it is thanks to the economic crisis that Estonia can join the euro. They have had deflation (or minor inflation at best) the last 2 years, so they now meet the inflation criterium of max. 2%.

True!!
8O It sounds kinda funny... Maybe in the future there will be a criterium for minimim rate of inflation :P
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Re: Perhaps Estonia in EMU on first January 2011

Postby Dakkus » Mon Feb 01, 2010 1:06 am

I wonder if the Estonian coins will have lions and swans depicted on the coins ciruclating in Tallinn und the Estonian blob in the other cities :)

When Estonia joins the Euro, it will also increase the money I spend there. Currently I often try to get through Estonia without needing cash, because I do not want to change money back and forth.
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Re: Perhaps Estonia in EMU on first January 2011

Postby WinstonSmith » Mon Feb 01, 2010 1:01 pm

The proximity of Finland (which has got a very good hit ratio) and the diffusion of Internet in the country could make Estonia a very good place for trackers. ;)

The coins should look like this, according to a 2004 poll among the population, when it was widely believed that Estonia would start using the euro in 2007:
http://en.wikipedia.org/wiki/Estonian_euro_coins

Does any country actually feature a map of itself on its coins? I would prefer something more cultural - for example, Kosovo has got a map of itself on its flag, but that's just because they didn't want to put any symbols which could be too close to the Albanian cultural heritage - and thus likely to be seen as unfriendly by the Serb minority.

Also the Italian region Emilia-Romagna, where I currently study (Bologna), has got a map of itself on its flag. And that's because the two historical regions of Emilia and Romagna don't have a significant cultural heritage as a united region.

The case of Estonia is very different from the two I mentioned; that's why I say they could have chosen something more significant. :)

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Re: Perhaps Estonia in EMU on first January 2011

Postby Dakkus » Mon Feb 01, 2010 1:39 pm

WinstonSmith wrote:The proximity of Finland (which has got a very good hit ratio) and the diffusion of Internet in the country could make Estonia a very good place for trackers. ;)

The coins should look like this, according to a 2004 poll among the population, when it was widely believed that Estonia would start using the euro in 2007:
http://en.wikipedia.org/wiki/Estonian_euro_coins

Does any country actually feature a map of itself on its coins? I would prefer something more cultural - for example, Kosovo has got a map of itself on its flag, but that's just because they didn't want to put any symbols which could be too close to the Albanian cultural heritage - and thus likely to be seen as unfriendly by the Serb minority.

Also the Italian region Emilia-Romagna, where I currently study (Bologna), has got a map of itself on its flag. And that's because the two historical regions of Emilia and Romagna don't have a significant cultural heritage as a united region.

The case of Estonia is very different from the two I mentioned; that's why I say they could have chosen something more significant. :)


The coin with the blob was chosen, because the Estonians wanted to show the beautiful shape of their country to the Europeans.
I guess that is because it was just a short time ago that they got independent from a country that had strongly oppressed the Estonians, killing large amounts of them on camps and trying to get rid of their language and culture. They are happy to have sovereignty over their own land area, they are happy of their independence.
And what is the most important thing in independence? It is not having an own flag, it is not some symbol. It is the right to independently decide on any things related to a certain land area. You wouldn't be able do much with just a flag if you didn't have the land area, but you can definitely use the land area even if you didn't have a flag/symbol/whatever. Therefore, at least many older Estonians like it when they are looking at a map and see a line showing where their own sovereign territory is located.

Also, it might be some kind of a local cultural thing to actually really consider such a blob beautiful. I have yet to meet anyone in Central Europe or Finland, that would consider the Estonian coins especially beautiful. But, when I have asked some Russian and Baltic friends of mine about which of the proposed 10 designs they find most beautiful, they opt for the one with the blob. Beauty is subjective and culture-related. Seems that over there the culture is more likely to make people like such imaginery than on the present Euro area. I wonder if that is somehow connected to having seen those funky soviet propaganda posters everywhere for so many decades..
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Re: Perhaps Estonia in EMU on first January 2011

Postby tabbs » Sat Feb 06, 2010 3:56 pm

Don't know how attractive it is these days to join the currency union, and how long the euro area will be around. But assuming that Estonia introduces the euro in eleven months, they sure won't modify the designs between now and then.

What I don't quite understand though - if the map is so important for them, why has it never been used on an Estonian coin before? And why would it now be on each and every denomination, resulting in eight identical national sides? "Hey, our circulation coins have always been somewhat dull" cannot be the only explanation ... ;)

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Re: Perhaps Estonia in EMU on first January 2011

Postby Dakkus » Sat Feb 06, 2010 6:22 pm

tabbs wrote:Don't know how attractive it is these days to join the currency union, and how long the euro area will be around. But assuming that Estonia introduces the euro in eleven months, they sure won't modify the designs between now and then.

What I don't quite understand though - if the map is so important for them, why has it never been used on an Estonian coin before? And why would it now be on each and every denomination, resulting in eight identical national sides? "Hey, our circulation coins have always been somewhat dull" cannot be the only explanation ... ;)

Christian


They had this crazy televised telephone vote of which coin to choose. Apparently most of the people didn't really want to pay to express their opinion, but just believed that the outcome will be acceptable anyway. "What does it matter, what the coins look like?"
In such situation it is very easy manipulating the vote by making some phone calls. I don't remember the caller amount, but I did calculate that approximately 2% of Estonians gave their vote in the poll...
Out of 1,3 million inhabitants 2% is about 13000 people. In order to have half the votes, you need 6500 people. For 20% of votes you need some 3000 people.
Maybe there's been some web forum, where they have decided to vote for this design, I don't know.
Might of course really be that the Estonians somehow indeed like the chosen design.
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Re: Perhaps Estonia in EMU on first January 2011

Postby tabbs » Sun Feb 07, 2010 11:53 am

Sounds familiar. That is pretty much how things worked (or rather not) with the web vote when it came to choosing the design of the "10 Years Euro/EMU" pieces. Not too many participated, and thus ... :roll: Ah well, the map or outline of Estonia does have an interesting shape. For one or two denominations it would have been fine in my opinion.

As for the question whether any country uses a map on its coins, well, in the euro area there is none. (Probably because we already have a map on the common sides.) The hexagon on the French €1 and €2 pieces could be counted as one, but of course it is pretty abstract. Country maps can be found on a couple of collector coins though, and of course on various non-euro pieces ...

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Re: Perhaps Estonia in EMU on first January 2011

Postby ART » Sat Feb 13, 2010 7:57 am

tabbs wrote:Don't know how attractive it is these days to join the currency union, and how long the euro area will be around.


Why? The EMU in spite of the difficulties it's demonstrating a nearly unexpected solidity. Not always the things can go well, are also the difficulty moments, but a serious project involves also to accept risks.
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Re: Perhaps Estonia in EMU on first January 2011

Postby tabbs » Sat Feb 13, 2010 11:34 am

Sure. But a serious project also involves serious ambitions, and to some extent I doubt the euro area and its members today have such ambitions. I for one thought and still think that the euro is a major achievement, both from a practical point of view (I am in DE but close to NL and BE) and with regard to the European Union as a whole. But it has also been obvious from the beginning that the common currency will not work in the long run without further integration. If the US dollar is more attractive for investors these days, it's not because the US economy is in a healthier state - it's due to the political structures.

Admittedly the sentence you quoted was not exactly about Estonia. For a member state that already is in ERM-II, and has its currency pegged to the euro anyway, it would indeed make sense to be in the currency union. But if I were in another (non-euro, non-ERM) country, I would probably ask myself, why make many (partly painful) efforts in order to join a currency area with such flaws? Ah well, it will take another couple of years until we know where the priorities are for the member state governments in the euro area ...

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Re: Perhaps Estonia in EMU on first January 2011

Postby ART » Sat Feb 13, 2010 4:56 pm

tabbs wrote:Sure. But a serious project also involves serious ambitions, and to some extent I doubt the euro area and its members today have such ambitions.

But it has also been obvious from the beginning that the common currency will not work in the long run without further integration.


True, but isn't necessary all aera euro to begin, we can leave from a more narrow group in order to simplify the "games". Necessary say first of all the politicians: to continue to tergiversate aren't more possible.


tabbs wrote:Admittedly the sentence you quoted was not exactly about Estonia. For a member state that already is in ERM-II, and has its currency pegged to the euro anyway, it would indeed make sense to be in the currency union. But if I were in another (non-euro, non-ERM) country, I would probably ask myself, why make many (partly painful) efforts in order to join a currency area with such flaws?


I think that also in this case the advantages exceed the disadvantages: the euro has exited undamaged from the worldwide crisis. To disturb it, but always remaining on range considered strong, has been the unexpected of Greece only.
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Re: Perhaps Estonia in EMU on first January 2011

Postby debemaks » Wed Apr 07, 2010 1:55 pm

Dakkus wrote:I wonder if the Estonian coins will have lions and swans depicted on the coins ciruclating in Tallinn und the Estonian blob in the other cities :)

When Estonia joins the Euro, it will also increase the money I spend there. Currently I often try to get through Estonia without needing cash, because I do not want to change money back and forth.



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Re: Perhaps Estonia in EMU on first January 2011

Postby androl » Thu Apr 29, 2010 9:45 pm

WinstonSmith wrote:Does any country actually feature a map of itself on its coins?

for example Azerbaijan
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and a 2/3 map of Australia
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any other ones?
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