Wednesday, June 9, 2010

Estonia to Join the Euro

Maybe it's the solution to the Eurozone's issues.

EU finance ministers have backed Estonia's bid to become the eurozone's 17th member, effective January 1 2011.

Estonia's currency, the kroon, has been fixed to the euro ever since the single currency's inception in 1999.

According to the BBC, "For years, the ex-Communist country was unable to fully join the euro, as its inflation rate was deemed too high.

But thanks to the global recession, the country has finally met the eurozone's inflation criterion."

We know that deficits do not matter as to a pre-requisite to join the Euro, however, "unlike many existing eurozone members, Estonia has stayed within the euro's criteria on budget deficits and total government debt for several years.

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