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Sonny Aswani: Estonia to win from the current crisis

"Estonia is likely to win from the current eurozone crisis since it forces more Scandinavian businesses to transfer their jobs to Estonia."

I don't quite follow this. Sweden, Norway, and Denmark are all outside the Eurozone. So how would a crisis _in_ the eurozone make them want to move production to a country in the eurozone? Wouldn't they instead prefer to keep it outside of it since then they can control their own currency costs? Reply to the comment answer
~ameeriklane [21.12.2011, 05:49]
Probably he includes Finland in Scandinavia (many do, although I agree with you that it shoudnt be). The Danish krone is pegged to the EUR in a similar way as the Estonian kroon was before. For Sweden and Norway you are correct looking at the earlier recession 2008/2009. Both SEK and NOK lost value against EUR during the crisis since investors avoided small currencies even in countries with a healthy economy. However both SEK and NOK are now back at pre-crisis levels against EUR (or even stronger). And this time around the governments in Sweden and Norway are more worried about a Swiss situation. Meaning the worse the crisis gets the more investors will buy SEK and NOK, making these currencies stronger and production there more expensive compared to EUR-countries.
~Dag [21.12.2011, 09:55]
As if Finland suposedly is moving jobs to Estonia. You must have been drinking too many snaps if you think SEK is stronger than the euro.
~uomtox [21.12.2011, 11:15]
"As if Finland suposedly is moving jobs to Estonia." On a small scale this actually currently going to happen. Or they outsource their producation to Asia, as NOKIA is planning to do so, meanwhile they already outsourced their R&D to the U.S. and Symbian delvelopment is done by Accenture now. Moving production to Asia costs a thousand job in Finland alone and +3000 jobs across Europe. Again, NOKIA case alone. And a loss of a thusand jobs in Finland is significant to them. I do believe, among other loss-making strcutures, that Finland slowly going down the river.

The thing is that Estonia minimal would benefit from this, even if NOKIA and others would opt to partially outsource their operation to Estonia, because a lesser walth neighbouring country, also mean less exporting opportunities back in return. It is actually a flip-flop. Howver, if Estonia does not try, if you will, to emphazise to grab some pieces from the cake, Finland's ailing structure would mostelikely have a negative effect on Estonia's economy outlook also. To compensate that, it makes perfectly sense to export to different other countries, including Sweden, that, for now, has a currecny rate issue, but makes it more attractive to Estonia to export at.

Also, as much Estonia is always blamed for its failures of economic maneuver, let's not forget the ticking timebomb on the other side of the Baltic sea.
~knut albers [08.02.2012, 17:13]
Sorry for the typos, lack of time.
~knut albers [08.02.2012, 17:20]
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Hello Sonny Sahib

How are you

You know very well, as well as I, That Estonians will never even bother to read what you say, which is very true, They will sleep with Face towards Scandinavia and Ireland and feet towards Russia :) Asia and India don't even come in their nightmares :) Reply to the comment answer
~Ashok Bakshi [28.12.2011, 14:26]
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~Trinity [09.01.2012, 02:49]
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Due to a cold blooded judge Piret Rouk and My SEB employee ex wife's typical estonian wisdom inherited from her saarlane mother, she has been snatched away from me. Reply to the comment answer
~Ashok Bakshi [08.02.2012, 09:15]
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~ffgfdg [13.04.2012, 11:08]
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