Ansip Meets Merkel in Berlin
Prime Minister Andrus Ansip met with German Chancellor Angela Merkel in Berlin on Wednesday.
Fiscal policies were one of the main topics on the agenda during a press conference, ETV reported.
"Estonia has consistently gone forward with its reforms. Estonia's public debt is at 10 percent [of GDP], which Germany can only admire, because our public debt is at 80 percent," Merkel said.
An ETV journalist asked Merkel what she would tell Estonians who are tired of austerity and want the state to invest in their people's welfare. Germany is having the same discussion, Merkel responded.
"The greater the economic growth and state revenues, the easier it is to give out more money. It is a very wise policy to avoid falling into major debt. That also ensures the functioning of our social welfare systems and ensures investments," Merkel said.
Ansip stressed his principle that a society cannot live off of loans taken from future generations. Estonia will continue to embrace strict fiscal policies, he said.
"Germany and Estonia agree that economic growth cannot be achieved by printing more money. Economic growth and competitiveness can only be achieved through reforms and the EU must continue with these reforms," Ansip said.