GODOLLO, Hungary - Estonia - most recent member and the poorest of the euro - will be step and avoid bailing out much more rich Portugal and the Ireland, the Minister of Finance of the country, said Saturday.
"Even if a rich country, is in danger, he is still in danger and you need to support," Jurgen Ligi said Associated Press.
Ligi spoke a day after the euro 17 countries have decided to give the Portugal about euro80 billion ($115 billion) rescue loans where he signed to a strict economic adjustment program.
Estonia and his Finance Minister without contention, could have a few words of advice to political parties enemy to the Portugal as they are forced to agree on painful reforms and budget - well Ligi is to ensure not to impose.
"We are so small that we do focus on advice, said Ligi, whose Government was elected for another term." We share, if requested. ?
A success for some, a cautionary tale for other - part of the Estonia in the euro area financial saga has some ironic twists and turns.
The small Baltic country suffered more that most European States in the wake of Lehman Brothers collapse in 2008. That same year its economy decreased by 5.1%, followed by a plunge of 13.9% in 2009.
With the drop in tax revenues, the Estonia has done what other countries dare. Rather that to spend its way out of the recession, it reduces spending, cutting some treatment of the public sector by a third party and probably exacerbate its immediate economic problems.
"It was a rational decision to not spend more that you win," said Ligi. "I would have done it even more."
Today Estonia has debt lowest in the eurozone of load - less than 6% of gross domestic product - and it even managed to produce a small surplus in 2010, said Ligi. The Ireland deficit topped 30 percent last year, while the Portugal has just revised its up to more than 8%.
But these numbers tell the full story.
Estonia per capita gross domestic product was just $19,000 in 2009, the latest available figures, compared to $23,000 to the Portugal and $enough in Ireland. Unemployment is still more than 14%, the fifth higher in the euro area.
Although its economy began growing again once last year, even the European Commission, Executive of the European Union and strongly partisan cutting strategy and grow, explains the rate of growth in the medium term the Estonia barely reach one-third of its level from before the crisis.
"We have many problems." "We are not a rich country," said Ligi.
But he is not seeking to use it as an excuse to avoid paying for the problems of less disciplined Governments, as Slovakia has done when it refused to participate in a European billion emergency loan in the Greece last year.
Once the Estonia officially joined the main Fund of rescue of the euro, the European financial stability facility, Ligi is expected to guarantee loans for the Ireland and the Portugal.
"I cudgels for it in Parliament, if necessary," said Ligi.
The Minister said he has little hope of changing the key to calculate the contribution of the Estonia the installation, which is in the midst of an overhaul to expand its lending capacity to euro440 billion from euro250 billion currently.
Once this is done, Estonia will be probably responsible for loan guarantees which consist of a few per cent of economic production 12.6, Ligi said - rich far more countries such as the Germany or the Netherlands, which is probably guarantees top 10 per cent of GDP.
The reason for this odd distribution is the formula used to calculate the contributions, which gives equal weight to economic production and the population size.
Estonia and the other States of the newest and poorest euro received a more favorable key for the recently agreed to rescue fund after 2013, where the responsibility of the Estonia will weigh only some 9 per cent of GDP. However, Ligi said that a similar agreement was unlikely for the European installation of financial stability, which was implemented in May 2010.
"You cannot open the history," said Ligi.
But the Minister not expected huge protests at home for promising its support for the Ireland and the Greece.
"We have Estonian understand that these things help," he said. "Estonians may very well face the difficulties and they are very rational."
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