TALLINN - Estonia's economy minister broke ranks with premier Andrus Ansip, saying Ansip's previous government blew its chance to pave the way for the now-elusive goal of adopting the euro.
'Estonia had a chance to speed up joining the eurozone under the last government, which led the country when inflation was much lower than now,' Juhan Parts told Agence France-Presse.
However, he said, Ansip's former coalition had been 'too worried about its reputation and instead of making accession to the eurozone its priority, took misplaced steps such as too rapid an increase in state sector salaries'.
'Now, when inflation has racked up, accession to the eurozone is postponed for years,' Parts said in an interview.
Estonia had hoped to make the switch from its national currency, the kroon, to the euro, at the start of this year. However in April 2006 the government shifted the target to 2008 and was later forced to put the move on ice until at least 2011.
The delays came after Estonia failed to rein in rising inflation, which must be curbed under European Union-set criteria for would-be eurozone members.
Estonian authorities have said that average annual inflation, which is the EU's benchmark, is likely to hit 6.1 pct this year, due to strong domestic demand and rising wages, outpacing the government's original forecast of 4.9 pct.
It is expected to reach 7.4 pct in 2008, stoked by increases in alcohol, tobacco and fuel excise in line with EU rules.
Average annual inflation in 2005 had been 4.1 pct, and rose to 4.4 pct in 2006.
Estonia has enjoyed years of robust economic growth. Gross domestic product (GDP) expanded 10.2 pct on an annual comparison in 2005 and by 11.4 pct on the same basis in 2006.
However the Estonian central bank has lowered its 2007 economic growth forecast to 7.3 pct from the previous 8.4 pct and has also trimmed its 2008 forecast to 4.3 pct from 6.4 pct.
'With the current decrease of GDP and increase of inflation it is impossible to predict when Estonia will be ready again to join the eurozone,' Parts said, adding he was nonetheless an 'optimist' regarding eventual accession.
Parts, of the conservative Pro Patria-Res Publica party, was prime minister from 2003 and stepped down in 2005. He was in power when Estonia joined the European Union in 2004, 13 years after independence from the crumbling Soviet Union.
Parts was replaced by Ansip, of the centre-right Reform Party, who had been his economy minister, and who set up a coalition with the centre-left Centre Party.
Ansip dumped the Centre Party after winning elections in March and brought Parts and his party back into government.
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