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Dear reader,

For 20 years all governments of Estonia have kept the public finances in order, tax system simple, taxes low and economy open to foreign investments.

Following these principles with strict dedication has, by today, given Estonia the lowest national debt, strongest budget position and fastest growing gross domestic product in the European Union. Estonia is trusted by foreign investors as well as by rating agencies. Our banking system is strong. Our corruption level lowest of the region. Our economy is flexible and adapts fast to the changing conditions.

The Index of Economic Freedom 2011 shows that Estonia holds 14th position in the economic freedom ranking of the world and is among the first five in Europe. Entrepreneurship is easy here. One can register a company through the internet in only 15 minutes and without having to make the share capital contribution.

We have been members of the eurozone for a year now. Estonia has yet again become attractive for direct foreign investments and the Euro has facilitated trade with other members of the European Union. As compared to the pre-crisis early 2008, the foreign direct investments had increased by 15% by mid-2011. According to the most recent data, export of our goods was 47% higher during the first 9 months of 2011 than during the same time of the year before. More than 70% of our export goes to other Member States of the European Union and therefore it is important for the foreign investors not to be threatened by exchange risks. The Euro has given reliability to Estonia.

We in Estonia know that the guarantee for growing competitiveness is searching for modern and smart solutions as well as investing into research and development activities. Expenses of this field have increased to 1.63 percent of the gross domestic product. We are planning to increase R&D investments to 2 percent of the GDP by the year 2015 and to 3 percent by the year 2020.

Soon the hunger for innovation of the Estonian people will get an interesting output – during the year 2012 Estonia will be covered with fast-charging stations for electric cars in order to enable widespread use of environmentally friendly new age electric cars. The network of chargers will cover all larger settlements, major roads as well as transport terminals.

In times of many uncertainties in world economy, the position of Estonia is stronger than it has ever been. We are the fastest growing economy in the European Union, our public debt is the lowest, Estonia's labour law is the most liberal in the EU and our business environment is clear and entrepreneurfriendly. I invite you to partake in it.

Andrus Ansip
Prime Minister
Republic of Estonia