OREANDA-NEWS. On June 15, 2009 Deputy Governor of Eesti Pank Marten Ross gave a presentation at the international conference Economies of Central and Eastern Europe: Convergence, Opportunities and Challenges, reported the press-centre of Eesti Pank.

The conference was organized by the Tallinn University of Technology and took place in the conference centre of Clariton Hotel Europe.

Marten Ross analysed in his presentation the accession of the Baltic states to the euro area. "The Baltic countries meet most of the criteria necessary for the adoption of the euro and successful participation in the euro area," said Marten Ross.

International analyses confirm that the flexibility of labour markets and pricing is among the highest in the EU. In addition, the Baltic countries have strong connections with the euro area in the field of external trade and financial markets. "The accession to the euro area is a natural step and the flexibility of the Baltic markets enables the region to make the most of the advantages of the single currency area.

Thus, the flexibility of the Baltic economies helps them better adjust to the rapid changes in the economic environment and close ties with euro-area countries help balance the development of the economy and increase export possibilities. In addition, the monetary systems of the Baltic states support growth recovery in the small countries and the perspectives of joining the euro area. Since the economic flexibility of the Baltic states is one of the highest in Europe, we are able to adjust in the current economic situation by changing wages and prices," Ross noted.

Ross also spoke about the global economic crisis, highlighting the most significant conclusions: "The past year's economic developments clearly prove the significance of conservative fiscal policy and the reserves accumulated in earlier years. The high capital and liquidity buffers of banks are just as important in coping with the rapidly deteriorating economic situation. Moreover, the events of the past year in the Baltic states show how important a common banking market is in enhancing stability," said Ross, adding that in the future it is necessary to continue and reinforce counter-cyclical fiscal and financial sector policies and banking and financial market integration in order to ensure balanced economic development.

The conference held on June 14-16 has been organised in cooperation with the USA-based Society for the Study of Emerging Markets and with Eesti Pank. It discusses topical issues and disseminates high-quality research in economics, finance and business administration with a focus on Central and Eastern Europe. Economists from more than 20 countries participate in the conference.

More information about the conference is available at: http://tseba.ttu.ee/ECEE/.