Estonia - Baltic state becomes the 17th EU member to adopt the Euro

Описание: (31 Dec 2010)
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Estonia - Baltic state becomes 17th EU member to adopt euro
AP TELEVISION
Tallinn - 31 Dec 2010
1. Wide of Tallinn old town
2. Exterior of Prime Minister's Office
3. Close up of Euro ornament on Christmas tree
4. SOUNDBITE: (English) Andrus Ansip, Estonian Prime Minister:
"In Estonia we are for prudent fiscal policy and we hope all other eurozone member states, EU member states, they will also start to pay more attention on sound fiscal policy."
STORYLINE:
On January 1st 2011 the Baltic state of Estonia are due to became the 17th European Union member to adopt the joint European currency, the euro.
The small nation's decision to change from the Estonian kroon to the euro was the final step in a two decade-long effort to integrate its economy with Europe after it achieved independence in 1991. It is the first former Soviet republic to join the single currency club.
The inclusion of Estonia, a minuscule 19 (b) billion US dollar economy, in the 2.5 trillion euro (3.35 (t) trillion dollars) area is being touted for its symbolic importance after the currency was battered throughout 2010 by bad news. Two members, Greece and Ireland, required international bailout funds to avert bankruptcy.
Estonia could be the last new entrant for several years as all other potential newcomers from Eastern Europe either shy away from adopting an unpopular currency or fail to meet criteria on budget deficits and inflation.
European Commission President Jose Manuel Barroso welcomed Estonia to the euro zone hours before the midnight changeover, saying the currency switch would boost the nation's economy and send a powerful message to all EU members.
Leaders of Germany and France, the euro zone's powerhouses, also made laudatory New Year's statements in support of the common currency after the worst year in its 12-year history.
In her appeal to Germany on Thursday, Chancellor Angela Merkel called for strengthening the euro, which is now the main currency for 330 (m) million Europeans.
Estonia's leaders and many economists believe the country's economy, which contracted a staggering 14 percent in 2009, will benefit with the euro, though the country still has painful structural reforms to implement before reaching western European living standards.

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