New Recovery Plan Ideas for Estonia

The last year has been difficult for almost every nation around the world, not even the strongest economies were safe from this unprecedented situation that affected our world; however, we already can see some sights of improvements and Estonia is an example of that resilience spirit that represents the European continent.

Speaking of resilience, in the last weeks, Ursula Von Der Leyen, who is the president of the European Commission announced the assignment of 969,3 million euros to Estonia, as a part of the European Union´s recovery and resilience plan to revitalize the economy and support on the fight with the coronavirus.

It is important to highlight that Estonia will also devote an important amount of those funds to support essential fields such as the creation of jobs, economic and social resilience, and all under the structure of green and digital transition.

What is a Green and Digital Transition?

According to the European Commission, the three pillars of the green transition will be the Enterprises Green Transition, sustainable energy, energy efficiency, and sustainable transportation.

This plan will look for the development and implementation of new hydrogen technologies since this element represents a natural energy carrier, and as a clean fuel can be included in the entire value chain from production to consumption. When talking about transportation, Estonia also planned to achieve sustainability focusing on various models of traditional transport such as rail or cycling,

On the side of the digital transition, Estonia is looking to essentially focus on two key points, firstly, the digital transformation of enterprises and, secondly, the enhancement of public services in the country. This will be possible because the plan includes an investment scheme that would provide financial support to companies on their transition to the digital world, and not only support big companies, also aim to small and medium-sized enterprises.

Estonia is also aiming for the digitalization of public services as previously stated, and the measures proposed by the European nation would certainly have a positive change in the way we know the public administration. The reforms include the migration of a part of the government information to a secure cloud, as this will ensure more efficient management of public services and organization of the data held by public organizations.

You might be wondering how these measures would impact the Estonian economy and, according to the European Commission, this project will contribute to the improvement of macro-economic performance through the mitigation of the impact of the COVID-19 pandemic, while promoting Estonia´s export competitiveness, innovation, and entrepreneurship thanks to the benefits of digital and green solutions. Overall, this plan includes measures that aim for the reinforcement of economic, social, and institutional resilience.

Regardless of the pandemic, Estonia represents a stable and strong European economy and this plan is clear evidence of their desire and will to create a better future for the next generations. If you want to know more about this magnificent country, contact us here at Mundo.

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The United Arab Emirates and the Republic of Estonia Expands Space Collaboration

In recent times, when talking about space the first names that may come into our mind might be Elon Musk or Jeff Bezos. However, Estonia is an innovative country with an important development in the area of space technologies, and also now is a member of the European space agency.

It is important to highlight that this country has made major advances in the space industry and as evidence of this tremendous progress, we can find their agreement to provide Stereo Cameras for NASA´s “Artemis” lunar project that one day might establish a lunar settlement in the future.

With that being said, The United Arab Emirates UAE Space Agency understands the potential of the European nation and has held bilateral conversations with the senior government and business officials from the Republic of Estonia to enhance the cooperation and the transfer of space-related technologies and services.

This initiative is seeking to strengthen the ties of science and technology, also facilitating the cooperation of the public and private sectors to drive economic and social growth to the parties involved.

According to the UAE representative, Salem Butti Salem Al Qubaisi, Director-General of the UAE Space Agency, we can already witness tremendous progress in this field. The Director also highlights the cooperation in areas such as artificial intelligence (AI), cybersecurity, outer space research, satellite production, and most important the strengthening of private investment and entrepreneurship in the field.

Al Qubaisi finished his statement by indicating that the conversations held with the Estonian government were positive, as they provided a constructive platform to build a competitive, innovation-driven economy for the next fifty years.

Estonian Economy Is in Good Health

According to Brand Finance, Estonia is the world´s fastest-growing nation brand in 2021 and one of the reasons is its world-class digital infrastructure; The consultant established that while other economies were having their digital deficiencies highlighted during the pandemic, Estonia's digital model should be underlined. In particular, nation branding it’s important to measure the reputation of a country, for this reason, it is fundamental to attract foreign investment, exports, and tourism.

Then, it can be considered that Estonia is the perfect destination for new investment and development projects in the modern digital world. However, in recent times some alarms have been activated due to the inflation rate in Estonia, while in the rest of Europe the rate is around 3%, the Baltic nation has reached 5% being the highest in the eurozone, but this situation has an explanation and of course a solution.

The Bank of Estonia explained that the prices increase in Estonia are directly related to the fuel and energy prices, which have also suffered an increase. According to the financial institution, the energy price has affected the nation because the energy consumption in Estonia is higher than average in the rest of Europe. Despite this, the Bank of Estonia’s economic research department believes that inflation rates will slow down next year.

On the other side, according to the “Aripaev” an Estonian financial newspaper, despite the inflation rate the Estonian economy is currently growing at a rate of 10 percent so it can be considered that the Estonian economy is currently in good health.

Additionally, the “Aripaev” editor in chief, Igor Rotov, also stated that it was enough to see the streets of Tallinn to confirm the situation, established “there are cranes everywhere, look at how roads are being built, how many investments are being made, look at how many young entrepreneurs are making an effort, and getting a result”.

In conclusion, as the fastest-growing nation brand, Estonia still represents a tremendous business opportunity that overcomes the challenges of the pandemic and establishes itself as a destination for investors all around the world, here at Mundo we tell you everything about this country.