Key developments and challenges

Estonia showed the fastest growth of all EU countries last year. However, the rapid expansion in exports in 2011, which currently stand at 26 per cent above pre-crisis levels, could make Estonia vulnerable to negative trends in the European economy.

Contributions into private pension funds are being gradually restored. This underlines the authorities’ commitment to a multi-pillar pension system and signals that a temporary crisis measure to restore fiscal balance can now be brought to an end.

The division of activities of the dominant energy supplier is positive for competition and market access. The requirement for a divestment of supply activities by the current monopoly gas operator is compliant with EU directives.