Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Estonia’s Ligi Says Ireland Needs More Budget Consolidation

Nov. 17 (Bloomberg) -- Ireland needs more budget austerity to solve its debt problems, said Jurgen Ligi, the finance minister of Estonia, which will join the euro region in six weeks.

The European Central Bank has “a central role” in helping Ireland to resolve its banking crisis, Ligi told Bloomberg Television in an interview in Brussels today. ECB assistance “can’t be very long and unconditional,” he said. “They have their conditions for politicians as well.”

Estonia on Jan. 1 will become the third east European nation to adopt the euro, following Slovenia and Slovakia. The government raised the value-added tax, alcohol and fuel taxes and cut budget spending, with measures totaling 9 percent of gross domestic product last year, to keep the fiscal deficit below the European Union limit of 3 percent of output in 2009.

The budget measures further dented domestic demand that started declining in 2008 as a property bubble burst. The economy contracted 5.1 percent that year and 13.9 percent in 2009.

“We have big similarities with Ireland in economic structure,” Ligi said. “We had a really hard real-estate boom and crisis after that, but we started to consolidate very early and this is the first thing that has to be asked from Ireland.”

To contact the reporters on this story: Ott Ummelas in Tallinn at oummelas@bloomberg.net; Francine Lacqua in Frankfurt at flacqua@bloomberg.net

To contact the editor responsible for this story: Willy Morris at wmorris@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.