The Central Bank of Estonia recently reported that inflation will remain above maximum levels required by the Maastricht Treaty to join the Euro. Currently, average Eurozone inflation rate of under performing economies runs at approximately 1.5% and Estonia's is north of 4%, and will remain so through 2008. Estonian Central Bank predicts therefore that Estonia won't be able to join the Euro until 2010.
In other news, unemployment in Estonia fell nearly 50% from October 2005 through this year; Estonia's unemployment rate is now below 2%. Needless to say the labor market is extremely tight currently.
