EU's Rehn: Estonia close to joining euro zone

Estonia is likely to be the next country to join the euro zone, the nominee to be the European Union's next monetary chief said on Monday (January 11), boosting the country's hopes of adopting the single currency in 2011.

The European Commission will assess Estonia's readiness to adopt the euro in the first half of 2010.

"The next likely candidate is Estonia. Public finances are in pretty good shape," he said at a hearing in the European Parliament.

By law, if the evaluation is positive and backed by the EU's 27 finance ministers, Estonia could become the euro zone's 17th member next year.

"Estonia is rather close, but we will have to ensure that all the rules are respected, that the (EU) treaty is respected, and we will return to this matter in the coming spring," Rehn said.

Estonia is currnetly struggling with an economic crisis that has hit the Baltic republics especially hard.

Analysts say adopting the euro would boost the country's economy by attracting foreign investors.

To join the euro, Estonia will have to meet criteria on budget deficits, public debt, inflation, long-term interest rates and currency stability.
Source:balticbusinessnews.com