EU approves Estonian euro entry for 1 January 2011

[pampango]

Source: BBC

EU finance ministers have given final approval for Estonia to adopt the euro as its currency on 1 January 2011. Meeting in Brussels, they decided to use the existing exchange rate of 15.6466 kroon to one euro as the final conversion rate.

The tiny Baltic state, population 1.3 million, will become the 17th member of the single currency. It met entry requirements on inflation, debt and deficit levels, interest rates and currency stability.

Of the EU's 27 member states, 16 currently have the euro as their currency.

Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Austria and Finland adopted the currency in 2002. Slovenia joined in 2007, followed by Cyprus and Malta in 2008, and Slovakia in 2009.

Read more: http://news.bbc.co.uk/2/hi/business/10611399.stm

[DonCoquixote]

1. I wish them the best

Though as the fracas with Greece shows, the EU still has a LOT of kinks to work out, not the least of which is the fact that London, Paris and Berlin are still not sure who leads the EU.

[nickinSTL]

2. I loved Estonia when I visited there in 1990

Tallinn was a beautiful city.

I'm certainly hoping this will be a good move for the country.

[Art_from_Ark]

3. They left out 3 euro countries

Europe's 3 tiniest countries-- San Marino, Monaco, and Vatican City-- have all adopted the euro.

[Kringle]

4. good news for merchants, raise the price of everything .nt

[roamer65]

5. Denmark and Britain are smart by staying out.

Denmark is in ERM2, but could drop out if needed and Britain abandoned the ERM completely. Currency union cannot work without complete political union.

[harmonicon]

7. I'm not so sure

Recently it's been good for the UK to be out of the Euro, but when it was hit with the current recession a few years ago the pound was certainly a liability. Being part of a larger currency could have helped credit markets and at least forestalled the recession, if not avoided it.

[Agent William]

6. Just so long as the UK doesn't start using the Euro...

That would break my heart.