Estonian Economic Policy Acknowledged at Meetings of IMF
OREANDA-NEWS. October 22, 2012. The Annual Meetings focused on the global economic situation, discussing further steps to be taken to alleviate risks and to support growth. The Estonian delegation was acknowledged for the relatively sound economic standing and policies that have contributed to faster recovery from the crisis.
The IMF’s Monetary and Financial Committee (IMFC) urged member states to rapidly implement the political measures agreed upon, since world economic growth is slowing and confidence in global economy needs to be strengthened. It was admitted during the discussions that risks and threats exist all over the world, not just in the euro area, so governments are facing even more complicated challenges. Like other advanced economies, several European countries have to continue with efforts ensuring sustainable fiscal policy and supporting economic growth.
According to Governor of Eesti Pank Ardo Hansson, governments should not distribute measures meant to narrow fiscal deficits over too long a period, because that would increase uncertainty rather than decrease it. “Budgets should be adjusted in the starting years of a crisis to provide more favourable conditions for growth. Estonia’s experience has confirmed that,” Hansson said.
The ECB was also acknowledged for the steps taken to help restore confidence in the euro area as regards both politics and economy.
It was also stressed at the IMFC’s meeting that the quota and governance
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