In spite of the economic crisis, Estonia’s government policy-makers have continued to focus, laser-like, on fulfilling the Maastricht criteria for adoption of the euro. Most of the criteria are being met, and the country appears to be on track to become the 17th country to adopt the euro as its official currency.
Getting to this point hasn’t been easy. And as a policy goal, euro adoption has many critics because meeting the Maastricht criteria has meant reducing government spending — and therefore the size of the social safety net — just as tens of thousands of Estonians are falling victim to unemployment. But for better or worse, according to a brand new International Monetary Fund publication, euro adoption could happen as early as next June.
Estonia became the first former Soviet republic to dump the ruble and issue its own currency, the kroon, in June 1992. More correctly, the kroon was reissued. The kroon was first introduced by the fledgling Estonian Republic in January 1928, and it remained the country’s legal tender until the Soviet occupation began in 1940. So taking into account both of its iterations, the kroon will have had a 30-year lifespan if current forecasts prove to be accurate.
If you’ve had the pleasure of holding them in your hands, you know that Estonian banknotes are beautifully designed and a pleasure to behold. I provide a fond description of my first encounter with a 500-kroon note in chapter 12 of my book. Here’s an overview of the notes currently in circulation:
For a more detailed perspective, you can click to open images of every version of every denomination note at the website of the Bank of Estonia.
If Estonia does manage to adopt the euro next summer, it will become the first former Soviet republic, and the third formerly Communist country (after Slovenia and Slovakia) to do so.
