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Estonia is a prime example of how austerity.
In the face of financial crisis the country -- public -- capacity and raise the retirement age what was the result of that kind of austerity.
It is the third fastest growth rate in the entire European Union.
New York Times columnist Paul Krugman he thinks otherwise he says that despite the country's progress it's no reason to celebrate it as an economic triumph.
In response to Krugman Estonia's president told us head -- break he took -- to his -- to defend his nation he wrote this.
Let's write about something we know nothing of balance and be smog overbearing and patronizing after all that just won't za.
Who -- ask -- -- by the way.
He also wrote suggests a Nobel in trade means you can pontificate on fiscal matters and declare my country a waste land.
Must be a Princeton vs Columbia on -- thing -- another.
Columbia graduate by the -- nasty stuff on both sides Estonia's ambassador marina -- god is in Washington and joins us now.
I'm just as ambassador thank you very much for coming on the program today I was just having me I just wanna make -- all we're all in the rises same place -- Estonia established an austerity policy.
But at the same time make structural reforms to its entire economy.
And that you think is the reason for your success of -- -- that.
Yes absolutely because we don't see -- that's.
Growths of economy and a story to contradict each -- It can work -- hands.
And that's with a choice taken by my country and the politicians in my country you raise the retirement age and you cut the pay -- people who work for the government and now you've got what kind of growth rate of ago.
Yes of these where real cuts those -- were -- In public -- in private -- there.
Solid growth rates last year was the -- the EU about 7%.
It's slowing donuts moments this year we expect about 2%.
But it's very much.
Because of that export partners what have we what the economists will say wait a minute if you can't pay both private and public you -- -- you've got less money into the economy how can you possibly grow.
Can you explain it.
But you have to take into account all the measures my country was in the process of reforms starting from 1991.
What were part of the Soviet economy.
By -- would have joined the EU that you'll resume the -- -- CD it has been a process of reforms from nearly twenty years.
The -- wore us privatization.
-- Government owned companies.
But also liberalization.
Of all we're economy that was I think we're the most -- traits country in the world.
Definitely one of the most pro liberal -- country and the EU and the has worked.
These days doing business -- easy to -- Sonia.
Very -- full text rates.
Very open -- almost no corruption.
Now what you feel about the did bailouts that they're going forward in other parts of Europe Greece Portugal Ireland and now as of this morning Spanish banks how -- you and Estonia feel about that.
Would participate in the bailouts because for us it's a very much the question of solidarity.
My country felt what does it mean when you're left alone without friends between the two world wars so for us it's very much -- question of solidarity -- supporting.
-- the conscious of the you'll resume who need assistance but.
We're also seeing good that the countries themselves have to take zero fear share.
Have to restructure their economies and can't depend only on bailouts so it's a complex -- assets so Estonia.
You have to be part of this bailout of the Spanish banks so some gets money from Estonia has to go to back up these banks.
Any idea how much you being asked -- At this point I'm not going to name the amount of money but yes we are among the countries who have signed both agreements -- -- Assistance to European countries tourism countries in need without participating.
-- -- -- -- the richest country in EU as you know now.
Next week is a major meeting in Mexico the G-20 meeting and it's likely that there will be a proposal for a ground that bail -- -- -- printing trillions of euros would you be in favor of that.
The discussions -- in the because -- EU with its usual tough to be made by 28 countries.
To find a conclusion -- right conclusion under the right decision among 28 is not easy.
All of ministers are discussing it in Brussels bound by that time will come up with our decision Narnia -- London.
The Estonian ambassador to the United States thanks for being with us today we appreciate this good stuff.
Thank you for hating me.
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