Finance minister Sven Sester: Short-term effect of UK referendum on Estonia small
While the United Kingdom leaving the EU came with risks to the economies of both the union and the UK, its short-term effect on the Estonian economy would be small, Finance Minister Sven Sester (IRL) said on Friday.
“You have to throw emotions aside and look at the new situation with a sober mind. Of course Estonia has consistently supported Europe's unity and ability to act together, but we have to respect the Brits’ democratic decision,” Sester told BNS, commenting on the result of the British referendum.
The minister said the short-term effect of the referendum on the Estonian economy would be small. “Brexit is a risk both for the economy of the UK and the economy of the EU, but its precise longer-term effect is difficult to estimate at the moment,” he added.
Sester said that a lot depended on what the economic and political relations between the parties would be like in the future.
“The most immediate result for both the UK and the EU definitely is an increase in uncertainty and insecurity on the financial markets,” Sester said.
“EU and UK institutions must do everything necessary to stabilize the situation and minimize instability for the economies and financial institutions of the countries of the euro area. In the new situation one definitely has to work on strong political and economic relations between the EU and the UK,” he added.