Estonia The New Eu Economy

Estonia is regarded by many as one of the most hopeful cases for the integration of eastern Europe into the enlarged European Union. It provides positive examples of how the integration process can be well handled, but at the same time some of the contentious issues this can give rise to. This book assesses the tensions involved in the development of the Estonian economy in terms of growth, convergence, financial development, labour reallocation, structural and organizational change, and the role of foreign companies and international networks. The analysis of Estonia is placed within a broader context and among a wider set of nations, and thus aims at understanding the potential for growth and structural change in the eastern part of the enlarged EU. In these and related fields, the book seeks to draw lessons from Estonia for other new (and indeed future) EU accession countries.

Two decades on from the start of the ‘Singing Revolution’, and five years on from the Baltic States’ entry to the European Union, the time is ripe to take stock of Estonia’s remarkable transition from Soviet Republic to EU member state and address the challenges - some new, some ongoing - and uncertainties that have arisen following the country’s entry to the EU. This book locates the post-accession period within the broader sweep of post-communist transition and diagnoses the problems facing Estonia as the global economic downturn takes hold and a new mood of pessimism reigns in Central and Eastern Europe. Until recently, Estonia enjoyed an international reputation as an emerging high-growth ‘tiger economy’ and reform pioneer, not least in the sphere of IT. This economic success story, however, masked the continued problematic political and social legacies of the Soviet period, including the issue of ethnic integration, which again hit the headlines following riots in Tallinn in April 2007. This fully up-to-date appraisal - the first in English - covers all of the key issues, and will appeal to specialists in Baltic and Central and Eastern European politics and society, as well as to anyone with an interest in European integration more generally. This book was published as a special issue of the Journal of Baltic Studies.

This book uses detailed data on individual firms and households to explore the basis behind Estonia's record as the most successful of all the EU countries over the last decade. We find that much of the reason is the greater flexibility of the Estonian economy, in both price setting in employment and wages and in consumption. Estonia is also able to adjust to shocks more rapidly and with less cost than other countries. Coupled with a favourable macroeconomic policy and a good institutional structure and legal framework, Estonia will be an example to others despite the recent downturn.

The New Europe is one of the most dynamic, complex and fascinating regions of the world. Eastern and Central Europe are striving to come to terms with the fall of communism and the dictates of the market, whilst Western Europe, suffering high unemployment and weakened economic impetus, has still to be reconciled to the consequences of restructuring and globalisation. The New Europe provides an unrivalled range of in-depth studies of issues central to the development of Eastern and Western Europe, to the major contrasts which still exist between them and to the problems facing the effective reintegration of this long-divided region. Highly accessible and uniquely authoritative, The New Europe is an indispensable text for students of contemporary Europe.