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Ceturtdiena 23.11.2017 | Name days: Zigfrīda, Zigrīda, Zigrīds
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Euro in Estonia boosts investors’ activities also in neighbouring countries

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Estonia’s shift to the euro has positively influenced German investors’ business activities in Latvia and Lithuania. The number of investors convinced the euro in Estonia promotes the neighbouring countries’ business exceeds the one of those facing negative consequences.

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUWhile three-fourths of the respondents are neither positively, nor negatively affected by Estonia joining the eurozone.

The euro introduction in Estonia left a positive effect on the German investors’ daily business activities in the Baltic States. Of course, the greatest beneficiaries are German entrepreneurs who opted for Estonia, when searching for investment opportunities in the Baltic States. Whereas, investors in Latvia and Lithuania benefit indirectly, concludes Maren Diale-Schellschmidt, the Executive Director and Board Member of AHK German – Baltic Chamber of Commerce. Consequently, businessmen’s projections voiced in the 2010 survey are confirmed –all of them approve of the euro introduction.

The current survey data show about two-thirds of German investors in Latvia and Lithuania approve of the euro introduction in the Baltics. At the same time, it is concluded the transition to the single European currency is not likely until 2014 or 2015.

More than two-thirds of German investors with money placed in Estonia assess the changes positively and feel a direct positive impact on their business.

Only 6% of the surveyed do not approve of the ongoing processes and their impact on their businesses. According to businessmen, the euro introduction will simplify accounting records, reduce costs of bank transfers and eliminate risks associated with losses from foreign currency conversion. The survey results suggest the major beneficiaries of these changes are businessmen engaged in services and trade, because investors from these segments express the greatest approval of the euro in Estonia.

Along with Estonia joining the eurozone, business partners’ confidence has grown as well, as one in five respondents held such an opinion. The single European currency is an important signal to foreign investors. It shows the country’s stability and its targeted movement towards the creation of a favourable investment environment. The euro introduction removes any doubts and indicates safety; it provides better prospects for the economic development and stability, strengthens the country’s image and makes Estonia advantageous for long-term foreign investments, says Thomas Schöllkopf, the President of AHK.

Costs are mentioned among the major drawbacks of the transition from the Estonian kroons to the euro. Nearly half of the surveyed crtiticise practical tasks and activities necessary to ensure the continuous process of the euro introduction, as well as the related additional costs.  Yet another drawback is the expected price gains and production costs surge. Some of the respondents are concerned about the potential increase in labour costs. However, the respondents do not see sharpening market competition and the resulting market share redistribution/loss as a threat.


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  1. John says:

    The rest of the Baltics could use the euro as well.

    Thumb up 0 Thumb down 0

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