Year-end Sale % OFF 
Abstract
The austerity implementation experience of the Estonian Government during the European financial crisis has high value both in practical terms when improving preparations for future crises, and as a case for academic research, especially when compared with the other Baltic States and Visegrad countries. The crisis response was even more complicated as a simultaneous goal was set to fulfil Eurozone accession criteria. When studied carefully, the Estonian experience is valuable from the wider future perspective as it offers experience and answers to whether extreme austerity is an efficient solution to counter a financial crisis, the economic and social costs it includes, the best administrative practices to be suggested when implementing austerity and some hints how to implement unpopular austerity politically.
Highlights
The economic developments, financial choices, political dilemmas and final achievements of the Baltic States in the years of financial crisis (2008-2011) offer both valuable practical experience and academic inspiration for research
Estonias path through the financial crisis in the years 2008-2011 was in many aspects different from the rest of the Baltic States, the Northern countries and the Visegrad states, as during the process of fiscal stabilisation, Estonia set the goal of fulfilling the eurozone accession criteria and joining the eurozone with any cost
While the years of economic boom in 2004-2007 offered numerous temptations in terms of social spending and institutional investments, the following years (20082011) of pressure and austerity tested the hidden values of political elite, survivability of economy and preferences of population
Summary
The economic developments, financial choices, political dilemmas and final achievements of the Baltic States in the years of financial crisis (2008-2011) offer both valuable practical experience and academic inspiration for research These countries, while following similar goals and paths between regaining independence and accession to the European Union (EU) in 2004, have chosen in many aspects different priorities after the EU accession, which led them into different economic and political situations at the beginning of global financial crisis in the year 2008. The government’s austerity policy caused a chain reaction where the reduction of public wages and cancellation of investments and state procurements reduced the government’s tax revenues and payments to commercial banks too; as a result, the purchasing power and the ability of the private sector to service the existing debt declined. The only group which fully escaped the cuts in political reasons was pensioners, as the average monthly pension even grew by about 20% in 2008, which has been described as the government’s ‘insurance policy’ to maintain political support among voters in an ageing society
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of Eastern Europe Research in Business and Economics
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
