Estonia has become increasingly influential in European circles for its tight fiscal management and an economy that has shown surprising resilience in the face of the ongoing slow meltdown of Europe.
Estonia boasts the lowest government debt in the entire European Union. In case anyone from Germany is reading this and scowling, it is worth adding that Estonia’s numbers were also the lowest by percentage of GDP.
With Europe in recession, the East will face continued tough times. However, even today some countries and some companies are doing well. With the right policies, the region can prosper in spite of the West’s difficulties.
Tallinn obviously had advantages that other former Soviet republics did not. Nevertheless, Estonia’s e-government experience demonstrates that even a small nation can take an innovative lead.
The Eurozone continues to go from bad to worse. Greece may be on its way out. Spain wants a bank bail-out. Buried amongst this depressing cascade of impending catastrophe is some good news. The Baltic States have demonstrated the art of economic reform.
Estonia, like the rest of the Baltics, suffered terribly after the Soviet invasion. Like its Baltic neighbors, it took the chance at independence after Moscow loosened its grip and has made a hard charge West, never looking back.