Estonia's Ross urges fiscal caution

Tallinn must pursue a frugal fiscal policy to ensure it meets the Maastricht criteria for euro adoption, said Marten Ross, a deputy governor at the Bank of Estonia.

Estonian economic growth is set to fall from 7.1% in 2007 to an estimated 5% this year and Ross believes that the government's plans for a budget surplus for 2008 could be hampered by the slowdown.

Countries must have a budget surplus or a budget deficit of no more than 3% to fulfil the convergence criteria.

Tightening fiscal spen