Estonia may be unable to join the eurozone in 2011
Toomas Hõbemägi
Maris Lauri, macroanalyst of Hansabank, told Postimees that higher excise duties that are aimed that bringing additional revenue to the state budget will also push up inflation which makes it difficult for Estonia to reach the Maastricht criteria.
“The recent decisions will definitely have an impact on inflation. I don’t think that Estonia may have to postpone eurozone entry forever, but much will depend on what will happen with world oil price,” said Lauri.
The analyst added that she is worried that although the oil price on world markets has been falling recently, prices in Estonia remain stubbornly high. “If it starts rising again we will be in a very tight spot” said Lauri.
Another analyst Heido Vitsur said that inflation is the key obstacle that is keeping Estonia away from eurozone.
Estonian President Toomas Hendri Ilves said recently in his speech to MPs that many current problems in the Estonian economy would not exist if Estonia already was in the eurozone.
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