Economic crisis and economic policy in Estonia 2007-2010 . Majanduskriis ja majanduspoliitika Eestis 2007-2010

Abstract

Estonia suffered the deepest economic crisis of its history in 2007-2010; also, the crisis was one of the most troublesome ones among the member states of EU and among the industrialized countries worldwide. The paper deals with main indicators describing the size and dynamics of the crisis and with the economic politics of government in the period. The latter one can be characterized by delay in giving estimation to economic processes and the lack of means against the crisis. At the same time government erected task to join euro at any price. The economic reactions were centred on it. The taxes were lifted and the costs were cut down in order to balance the budget at the highest peak of the crisis, it was done also in the middle of the budget year. All the criteria to join euro were succeeded to fulfil for a certain period (today the inflation is much higher again), but the difficulties of the crisis were magnified. The paper doesn’t give prognosis for the development of Estonian economy in euro zone, neither does it give any variances of economic politics for next years.