And the main beneficiary will be the Eurosystem

In the absurd situation where started the major centres of decision of the world, it is not absurd to suggest the following. The euro area must allow, January 1, 2011, the Estonia as its 17th member. And the main beneficiary will be the Eurosystem. It may take at least as many benefits of the strong convictions and demonstrative experiments of this small country by the number of its inhabitants (1.34 million) that it found in its full membership. The Estonian kroon (kroon) has continued, since his resurrection in 1992, to have party linked to the adventure of the single currency. The Government of the time had dared to gamble to introduce a fixed rate with the deutsche Mark to the new currency. The conversion to euros, au pair, naturally Opera in 1999: 1 euro 15,6466 EEK.

French journalists that it receives, the Minister of economy, Juhan Parts, says: "Oppose without complex monetary culture of Europe ambient euroscepticism which feeds a speculation that any fire." By experience, Estonians are convinced - notable contribution to the ongoing existential debate on the euro - that a strong currency is also good for a highly developed country such as the Germany for a European country emerging as the Estonia (where addition 92 of tax returns are by Internet).

Legacy of the Soviet underdevelopment, Estonian salaries are on average still three to four times lower than the nominal wages Finnish and Swedish (in terms of purchasing power, the difference is certainly less); However, they had a great and new leap forward ( 60) during the period of overheating (2005-2008), foreign banks in a dominant position are fully responsible. The deep recession that followed lowered the average earnings of labour in Estonia of approximately 4.5; full employment has given way to mass unemployment (13.1). In 2009, GDP fell by 14.1.

Two unusual features of the Estonian policy shed a light flood on two riddles artificially maintained the European problem.

First and glorious feature: cumulative debt of the State is equivalent to 7.1 of GDP, by far the lowest percentage in the EU. Tallinn is given to rule in practice - except limited overflow due to a cause outside-l' annual balance (insist on this point) of public finances. Released during the fat years surpluses were used to constitute reserves (just over 7 of GDP). The table would miss without this similarity: public sector absorbs 45 of national income. For a State to Liberal, the level of protection of employees is relatively high. Parliament however voted in crisis the relaxation of the right to work. Andrus Ansip, Prime Minister, was pleased to announce the colour: "We believe an Orthodox fiscal policy."

In the crisis, everything happened as if the luxury of a "Keynesian" solution (in fact imaginary) was reserved for the rich and powerful nations. For others, the austerity is required, or is imposed (by the IMF,...) course in the midst of the recession. In Estonia, were amputated treatment of officials - not indiscriminate:-10 in the police,-3-20 in government departments, education; It was noted by 2 points VAT to 20.

Estonian, rigour in the normal course of strong and sustainable growth, shows Europe the way of governance possible, whereas it remained daunting puzzle State. The latest decisions announced in Brussels suggest also elusive the notion of "European economic government" that they seek to promote. The French who are the good apostles since 1992 would be well to a term to define the instruments for action outside the macroeconomic trivial increasingly discredited by the crisis. The alternative As instructed by experience and a proper appreciation of his interests, each country is itself the same imperative: ensuring the annual financial balance of public accounts. Moreover, markets finally returned to the place it is agency. A Copernican revolution under ambient prejudices but also democratic discipline (reduction of arbitrary executive power) applicable regardless of the social preferences of the electorate. Corollary also desirable: Europeans should fully assume the differences of tax levies between national communities which they are citizens.

Second and clever feature: the Estonia has a proportional character IR ("flat tax"). All taxable income are the rates of 21 for those subject to the tax authorities. Revenues from capital are subject to the time where they are distributed as dividends. No double taxation: corporate income tax does not exist. Unfair Thanks this regime, capital Swedish and Finnish flock en masse to the Estonia, the sister of the Finland. The influx supports employment and increased wages. These countries form the EU as an ouralo-Scandinavian subset at them. This does not prevent the Estonian State to take a few precautions.

Save in exceptional circumstances, it discourages the settlements of production units employing more than 500 employees. In a market as close, the possible closure of a very large plant would have a disproportionate impact on employment.

Where is the objective fleeing as the European economic government passed! progressive harmonization of the laws and usages And if it was that the integration of the European nations: spontaneous nesting of their respective national spaces it is futile to deny the persistence