From the shores of the Baltic, the current conflagration of the eurozone look benign when set against a past of Soviet occupation and Stalinist oppression. But historical context is not all: Estonia’s unflinching intention to join the euro next year, which received a nod from Brussels this week, offers a useful perspective on the euro’s future.
In economic policy, Estonia is the anti-Greece.
It is a paragon of fiscal virtue. Its public debt, at 7.2 per cent of gross domestic product, is the lowest of any European Union state.
Its budget was in the black before the crisis, and the deficit has stayed below the 3 per cent Maastricht ceiling. It is planned to be 2.2 per cent of GDP this year.