•  But none of these price rises is even slight related to the fact whether and when Estonia adopts the euro in the future. •  In the conditions of market economy, price stability does not mean that prices do not change at all, but that they fluctuate moderately and that price movements can be anticipated. The price of sugar may slightly rise or fall both in Estonia as well as elsewhere in the European Union in the future. It is most likely that a piece of meat on the dinner table here in Estonia will at the time of adopting the euro cost more than today. It is integral to market economy that inflation goes in line with the increase in income. But the price will not rise due to the fact that the denomination of payment is the euro and not the kroon. It will be so because the incomes of people will have gone up and they can afford more and better goods. One thing is sure - there is going to be a rise in the standard of living. It is the pace of growth that is the issue here. And the European Union will significantly contribute to the increase in our income. Next I will provide a more general background to the coming developments in Estonia. Why is the European Union useful to us?
So, we should gradually pay back our debt, but when an old debt falls due it is common to take a new loan to repay the old one, and if it can be reduced, it will be even better. What will we do when in 2015 an installment of 500 million euros falls due? The amount that will fall due in the public sector is around Euro 380 million. The rest is in the private sector. We have in mind those payments maturing in the next period. We have the potential, in both the foreign reserves and the economy, and certainly we expect that there will be new loans from abroad, which will repay part of the liabilities that will mature. 4  BIS central bankers’ speeches