Saturday, January 9, 2010

Euro seen as Reform Party's big gamble

Juhan Kivirähk, sociologist and political observer, says that although the Andrus Ansip government is putting all its hopes on one card - euro - it is unlikely to resign even it misses its target.

According to Kivirähk, normal political culture says that the government that has all its eggs in one basket and fails in its bid has nothing else to do than resign.

"I don't think it will happen in Estonia. After all, Ansip promised to step down when Estonia fails to get the euro by 2007."

Kivirähk said that Äripäev's editor in chief Meelis Mandel hit the nail when he said that if Estonia fails to get entry to the euro zone in 2010, it would be best for the Reform Party not to run in the next general elections since the election result would be disastrous.

"But I like that we have the euro aspiration at the time when the government has no other plan to develop Estonian economy and society in the next decades," says Kivirähk.

"If Estonia now fails in its euro bid, it will wake up the next morning and understand that it has massive unemployment, highest tax burden in decades, collapsed internal market and plummeting wages plus high devaluation risk and investor mistrust."

Source: BBN

1 comments - React:

FX 初心者 said...

Estonia, come on. Wish success to Estonia, getting entry to the euro zone in 2010.