Tallinn - The extent of the economic problems in the Baltic
state of Estonia was made even clearer Monday when official data
recorded the first drop in wages since 1993.
According to Statistics Estonia, in the first quarter of 2009, the
average monthly gross wage dipped by 1.5 per cent to 12,147 kroons
(1,085 dollars), compared to the first quarter of 2008.
The last time a quarterly wage drop was recorded was 1993, when
the tiny nation of 1.3 million was still fighting to rebuild itself
after winning its independence from the Soviet Union in 1991.
Adjusted for inflation, the figures were even worse.
'In the 1st quarter of 2009 real wages decreased by 4.5 per cent,'
said Statistics Estonia.
After a decade-long boom, Estonia became the first country in the
European Union to slip into recession in 2008. In the first quarter
of 2009, the economy contracted by 15 per cent year-on-year.
The International Monetary Fund warned recently that the state
budget required 'fundamental rebalancing.'
A supplementary budget drawn up by the government of Prime
Minister Andrus Ansip aims to save around 3.4 billion kroons (300
million dollars) of state money, with further cuts promised.
Disagreements over how best to slash expenditure led to the
collapse of the three-party ruling coalition on May 21, leaving Ansip
in charge of a minority administration but refusing to resign.
The opposition People's Union party was due to meet Monday to
discuss whether it would be willing to join Ansip's Reform Party and
its coalition partner Pro Patria/Res Publica Union in government.
USA
Your Talkback on this Story