News / Europe

Estonia Adjusts to Euro Amid Concerns Over Currency's Future

An Estonian woman holds one of the new Euro banknotes which she has just withdrawn from an ATM cash machine in Tallinn, Estonia, 01 Jan 2011
An Estonian woman holds one of the new Euro banknotes which she has just withdrawn from an ATM cash machine in Tallinn, Estonia, 01 Jan 2011

The people of Estonia are adjusting to a new way of payment after their nation became the first former Soviet Union state to dump its own currency and adopt the euro on New Year's Day. Government officials have warned however that concerns over the future of the single European currency put off bigger eastern European countries from joining, for up to a decade. 

Crowds in Estonia's capital Talinn have braved freezing temperatures to sing and dance - many of them near cash machines, where they curiously look at their new currency, the euro.

Tallinn has also become a 2011 European Capital of Culture.

Yet critics are still in doubt over whether dumping the country's kroon was the right move for this Baltic state of just 1.3 million people.

Kirsi Altonen, who is originally from Finland, expresses mixed emotions about the euro.

"I suppose that the prices will go up in Estonia. But it's easier of course to travel from Finland and so on. But...",

There are also skeptics in other Eastern European countries, such as Poland, the Czech Republic and Hungary.

They no longer seem in a hurry to join the club of 17 nations comprising the 'euro zone', saying they first want to see how debt problems are solved in troubled Ireland, Greece, Spain and Portugal.

Polish central bank governor Marek Belka has told local media that Poland would only join when there was "order" in the euro zone. He sees no reason to rush as, in his words, "there are dramatic things happening".

Czech Prime Minister Petr Necas says introducing the euro would not benefit his country for a long time.

Hungary's Prime Minister Viktor Orban agrees. He says Hungary's introduction of the euro may be as many as 10 years away.

Mr. Orban says he does not want to give an exact date as many euro target dates were mentioned, and missed. But the prime minister admits that in his words
the introduction of the euro in Hungary "does not seem realistic before the end of the decade."

Analysts had earlier mentioned 2016 as a realistic date for Hungary and said larger eastern nations such as Poland may not join before 2020.

Experts say several Eastern European countries fear introducing the euro would make them less competitive as it involves losing flexibility exchange rates.

The debt crisis faced by several EU member states has also undermined a popular idea that being a euro zone member guarantees easy access to cash and lower borrowing costs.

But Hungarian Foreign Minister Janos Martonyi denies that Hungary has abandoned the euro. He says the government wants to assist in helping to stabilize the euro zone during Hungary's European Union presidency, which began on New Year's Day.

"We shouldn't believe that the euro is [only] for the euro zone countries. The euro is a matter for all of us. If the euro gets weaker, if the euro is in danger, we are all in danger," said Martonyi. "And we all have to be fully aware that we know that Europe's strength, Europe's economic and political power, Europe's projection, Europe's ideas all depend upon a healthy and strong economic situation as reflected by a healthy and strong and save currency."

European Commissioner for Economic and Monetary Affairs, Olli Rehn, makes clear that the euro zone will face many challenges in the coming years.

"Last decade to the past decade was the decade of turning [the euro] into reality," he said. "And the present decade which is now starting will be the decade of the fundamental reform of the euro area, of the economic and monetary union."

Back in Talinn an elderly man, Tiit Toominte, who lived through the years when his country was part of the Soviet Union, has hopes for the euro currency. He sees the euro as key to doing business in the Baltics.

When somebody will go abroad from Estonia and will look on the prices of different products [such as] shoes [and] clothes, he says, it will be easily possible to compare the differences with Estonia. He says he hopes commerce will improve thanks to this.

If it's up to the European Commission, more Europeans will share his view.

You May Like

Turkey: No Ransom Paid for Release of Hostages Held by IS Militants

President Erdogan hails release of hostages as diplomatic success but declines to be drawn on whether their release freed Ankara's hand to take more active stance against insurgents More

Audio Sierra Leone Ends Ebola Lockdown

Health ministry says it has reached 75 percent of its target of visiting 1.5 million homes to locate infected, educate population about virus More

US Pivot to Asia Demands Delicate Balancing Act

As tumult in Middle East distracts Obama administration, efforts to shift American focus eastward appear threatened More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
NASA’s MAVEN Probe Enters Mars Orbiti
X
September 22, 2014 9:20 PM
NASA’s newest Mars probe, called MAVEN, has successfully entered its designated orbit around the Red Planet. Scientists will use its sophisticated instruments to try to learn what happened to the atmosphere Mars had a few billion years ago. VOA’s George Putic has more.
Video

Video NASA’s MAVEN Probe Enters Mars Orbit

NASA’s newest Mars probe, called MAVEN, has successfully entered its designated orbit around the Red Planet. Scientists will use its sophisticated instruments to try to learn what happened to the atmosphere Mars had a few billion years ago. VOA’s George Putic has more.
Video

Video For West Ukraine City, Conflict Far Away Yet Near

The western Ukrainian city of Lviv prides itself on being both physically and culturally close to Western Europe. The Russian-backed separatists in the eastern part of the country are 1,200 kilometers away, and seemingly even farther away in their world view. Still, as VOA’s Al Pessin reports, the war is having an impact in Lviv.
Video

Video Saving Global Fish Stocks Starts in the Kitchen

With an estimated 90 percent of the world’s larger fish populations having already vanished, a growing number of people in the seafood industry are embracing the concept of sustainable fishing and farming practices. One American marine biologist turned restaurateur in Thailand is spreading the word among fellow chefs and customers. VOA Correspondent Steve Herman reports from Bangkok.
Video

Video Chinese Admiral Key in China’s Promotion of Sea Links

China’s President last week wrapped up landmark visits to India, Sri Lanka and Maldives, part of a broader campaign to promote a new “Maritime Silk Road” in Asia. The Chinese government’s promotion efforts rely heavily on the country’s best-known sailor, a 15th century eunuch named Zheng He. VOA's Bill Ide reports from the sailor’s hometown in Yunnan on the effort to promote China’s future by recalling its past.
Video

Video Experts Fear Ebola Outbreak ‘Beyond Our Capability to Contain’

Each day brings with it new warnings about the deadly Ebola outbreak already blamed for killing more than 2,600 people across West Africa. And while countries and international organizations like the United Nations are starting to come through on promises of help for those most affected, the unprecedented speed with which the virus has spread is raising questions about the international response. VOA's Jeff Seldin has more from Washington.
Video

Video Natural Gas Export Plan Divides Maryland Town

A U.S. power company that has been importing natural gas now wants to export it. If approved, its plant in Lusby, Maryland, would likely be the first terminal on the United States East Coast to export liquefied natural gas from American pipelines. While some residents welcome the move because it will create jobs, others oppose it, saying the expansion could be a safety and environmental hazard. VOA’s Deborah Block examines the controversy.
Video

Video Difficult Tactical Battle Ahead Against IS Militants in Syria

The U.S. president has ordered the military to intensify its fight against the Islamic State, including in Syria. But how does the military conduct air strikes in a country that is not a U.S. ally? VOA correspondent Carla Babb reports from the Pentagon.
Video

Video Iran, World Powers Seek Progress in Nuclear Talks

Iran and the five permanent members of the U.N. Security Council plus Germany, known as the P5 + 1, have started a new round of talks on Iran's nuclear program. VOA State Department correspondent Pam Dockins reports that as the negotiations take place in New York, a U.S. envoy is questioning Iran's commitment to peaceful nuclear activity.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Westgate Siege Anniversary Brings Back Painful Memories

One year after it happened, the survivors of the terror attack on Nairobi's Westgate Shopping Mall still cannot shake the images of that tragic incident. For VOA, Mohammed Yusuf tells the story of victims still waiting for the answer to the question 'how could this happen?'
Video

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

The International Whaling Commission, meeting in Slovenia, has voted to uphold a court ruling banning Japan from hunting whales in the Antarctic Ocean. Conservationists hailed the ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015. Henry Ridgwell reports from London.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid