Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Estonia to Run Budget Deficit Due Worsening European Economy

04/26/2012 | 12:20pm US/Eastern

Estonia, the euro zone's newest member, said Thursday it will run a budget deficit in 2012 as a worsening European economy curbs revenues.

The shortfall will be 0.5% of gross domestic product this year, the government said in a budget strategy approved at its weekly meeting in the capital Tallinn. The plan foresees a surplus of 0.1% of GDP in 2013 with annual increases to a 1% surplus in 2016.

Estonia became the 17th member of the euro zone on Jan. 1, 2011, amid the region's sovereign debt crisis that has seen Greece, Portugal and Ireland bailed out by the European Union and International Monetary Fund. The currency zone's economy contracted 0.3% in the fourth quarter as governments raised taxes and cut spending.

The EU economy will stagnate this year, the European Commission said in February. Already the U.K., Greece, Italy, Portugal, Ireland, Belgium, Denmark, The Netherlands, Czech Republic and Slovenia are in recession, defined as two consecutive quarters of economic contraction.

Finance Minister Juergen Ligi told a news conference the crisis in Europe meant Estonia won't meet earlier expectations of budget surplus this year. The country had a surplus of 1% of GDP last year and public debt of 6%, among the lowest among the 27-member European Union.

The ministry cut this month its estimate for 2012 economic growth, to 1.7% from a previous 3% forecast.

Finance Ministry: http://www.fin.ee

-By Liis Kangsepp, Dow Jones Newswires; +46 8 545 131 01; djnews.stockholm@dowjones.com

React to this article
Latest news
Date Title
<1m agoDJUnited Technologies CEO Chenevert Abruptly Steps Down -- 4th Update
1m ago TAYKEY : Sees 600% Revenue Growth in Two Years
3m ago ASPEN INSURANCE HOLDINGS LTD : Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
4m ago QATAR INSURANCE SAQ : QIC to issue Convertible Notes worth $250m
4m ago BOEING : Qatar 'vital market' for Boeing: CEO
4m ago FEDEX : #DeliveringThanks: Recognizing Those Who Embody the Purple Promise
4m ago INTERMEDIATE CAPITAL : Transactions in Own Shares
4m ago AAA AMERICAN AUTOMOBILE ASSOCIATION : Streak of Gas Price Declines Reaches 60 Days
5m ago L 3 COMMUNICATIONS : -3 Wins $218 Miion NGA Contract for Goba Network Soutions
5m ago RESEARCH AND MARKETS : Global Liquid Pumps Focus Report 2015-2020
Latest news
Advertisement
Hot News 
SOLID STATE : Confident As First-Half Profit Nearly Triples
AVINGTRANS : Revises Down Expectations On Demand Drop, Contract Delays
CHINA SPECIALTY GLASS : announces preliminary financial results 2013 (DGAP Adhoc)
RenaissanceRe to buy Platinum Underwriters for $1.9 billion
PROSENSA NV : RNA INVESTOR ALERT: Levi & Korsinsky, LLP Announces Investigation of the Board of Directors of Prosensa Holding N.V. in Connection With the Fairness of the Sale of the Company to BioMarin Pharmaceutical Inc. -- RNA
Most Read News
1d ago MANCHESTER UNITED : Red Devils Believed to Have Agreed Herrera Deal
1d ago PEARSON : chief promises a big push into China's education sector
1d agoDJYear-Old Messaging App Yik Yak Draws Big Valuation
1d ago VOLKSWAGEN : moves forward with dynamic young image
1d ago VOLVO : Being itself by being different gives Volvo Scandinavian edge
Most recommended articles
11m agoDJEurope Stocks Close Higher on ECB Hopes
21m ago Stocks gain on central bank stimulus signals, mergers
24m ago Russia sends mixed signals on oil output ahead of OPEC meeting
25m agoDJLONDON MARKETS : Petrofac Plunges Nearly 30% In London, But BT Boosted
35m ago USDOLLAR Risks Larger Pullback on Dismal 3Q GDP Report
Dynamic quotes  
ON
| OFF