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Estonia may be unable to join the eurozone in 2011

Toomas Hõbemägi Government’s recent decision to excise duty on alcohol and gas means that Estonia may be unable to join the eurozone also in 2011. Maris Lauri, macroanalyst of Hansabank, told Postimees that higher excise duties that are aimed that bringing additional revenue to the state budget will also push up inflation which makes it difficult for Estonia to reach the Maastricht criteria....

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Estonian businessman : one possibility is to cut wages

... alternative is even worse,” he explained. “It’s not a cool decision,” Käo added. Hansabank analyst Maris Lauri said that the wage growth has slowed down already but when looking at the statistics it has to be taken into consideration that the number of employees is being reduced in the sector of cheap labor force and therefore the average salary will increase and on certain specialties...