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An Estonian woman holds one of the new Euro banknotes which she has just withdrawn from an ATM cash machine in Tallinn, Estonia, 01 Jan 2011
An Estonian woman holds one of the new Euro banknotes which she has just withdrawn from an ATM cash machine in Tallinn, Estonia, 01 Jan 2011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

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

Abuja Blast Impacts Lives, Livelihoods

Officials say they are looking at ways to help bombing victims and boosting security More

Cambodia Technology Adviser Criticizes Cybercrime Draft Law

Phu Leewood says current criminal code can be used to prosecute offenders and that there is no need for a separate law More

Photogallery A Year Later, Boston Remembers Deadly Marathon Bombings

City pauses to honor victims and salute emergency workers who came to their assistance in frantic moments after blasts 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.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid