Lessons From Estonia

Lessons From Estonia

Estonia has a national debt of just 6% of GDP, a budget surplus and high economic growth, reports CNBC.  What’s Estonia’s recipe for success while their euro zone neighbors are bogged down in recession and debt?  According to Jürgen Ligi, Estonia’s finance minister, it’s the country’s willingness to take austerity measures.

After the recession, Estonians showed a willingness to sacrifice – civil servants took a 10 percent pay cut, ministers 20 percent; the pension age was raised and it became harder to claim health benefits.  But unlike other areas of Europe, there were no strikes, unrest, or threats of anarchy.  Estonians “understood they had to give up something,” said Ligi.

Ligi also says that Greek and Spanish people spend more than Estonians, but Estonians are happier because they live within their means.

There’s a lot the United States could learn from this small country in eastern Europe.

For more, read the article at cnbc.com.

 

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