UT FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION TO HOLD DEBATE ON EU ISSUES IN THE NATIONAL LIBRARY
23.11.2005
The debate, moderated by Mr Tarmu Tammerk (France Press), will
oppose UT Professor of Macroeconomics Raul Eamets and Professor Ivar
Raig, Vice Rector for Research and Development of Audentes University.
According to Prof. Eamets of UT Faculty of Economics and Business, adopting the euro is a natural follow-up to Estonia’s accession to the EU. Prof. Eamets also considers it beneficial to Estonian economy, since close to 80% of Estonia’s external trade is with the EU and over 80% of foreign investment made to Estonia stems from the EU. Furthermore, Estonia’s currency is pegged to the euro, testifying to Estonia’s close ties with the EU economic space.
Prof. Eamets sums up his position regarding the benefits inherent in adopting the euro by asking: “Why should we maintain separate currencies in the EU when we already have a single and unified economic space?”
Prof. Raig of Audentes University holds that adopting the euro is first and foremost a political measure intended to steer the EU in the direction of a centralised federal structure, since the adoption will speed up the rise of prices and the equalization of price levels. Prof. Raig also considers the accession to slow down Estonia’s growth since the Estonian economy is currently growing faster than the eurozone economies.
These are not the only examples Prof. Raig gives regarding the disadvantages inherent in adopting the euro: “The adoption may well keep inflation rates down in the future but will effectively do the same to wages. An additional point of concern is the fact that we have so far not seen any effective mechanism for imposing democratic accountability on the European Central Bank. Many of the old Member States participating in the Monetary Union do not fulfil the so-called Maastricht criteria, yet demand compliance from new members”.
Illari Lään
Head, UT Public Relations and Information Office
Additional information: Prof. Emeritus Mait Miljan, UT Faculty of Economics and Business Administration, tel. +372 737 6321
According to Prof. Eamets of UT Faculty of Economics and Business, adopting the euro is a natural follow-up to Estonia’s accession to the EU. Prof. Eamets also considers it beneficial to Estonian economy, since close to 80% of Estonia’s external trade is with the EU and over 80% of foreign investment made to Estonia stems from the EU. Furthermore, Estonia’s currency is pegged to the euro, testifying to Estonia’s close ties with the EU economic space.
Prof. Eamets sums up his position regarding the benefits inherent in adopting the euro by asking: “Why should we maintain separate currencies in the EU when we already have a single and unified economic space?”
Prof. Raig of Audentes University holds that adopting the euro is first and foremost a political measure intended to steer the EU in the direction of a centralised federal structure, since the adoption will speed up the rise of prices and the equalization of price levels. Prof. Raig also considers the accession to slow down Estonia’s growth since the Estonian economy is currently growing faster than the eurozone economies.
These are not the only examples Prof. Raig gives regarding the disadvantages inherent in adopting the euro: “The adoption may well keep inflation rates down in the future but will effectively do the same to wages. An additional point of concern is the fact that we have so far not seen any effective mechanism for imposing democratic accountability on the European Central Bank. Many of the old Member States participating in the Monetary Union do not fulfil the so-called Maastricht criteria, yet demand compliance from new members”.
Illari Lään
Head, UT Public Relations and Information Office
Additional information: Prof. Emeritus Mait Miljan, UT Faculty of Economics and Business Administration, tel. +372 737 6321