Flexible labour market structures and decentralised wage-setting are generally regarded as the prerequisite to support smaller enterprises, for these are often the engines of innovation in post-industrial economies. Last but not least, we should not underestimate the role of policy-makers in developing education systems. Let me add a word on this last point. We are often told that Europe and Western countries in general need more engineers and mathematicians to restore their supposedly lost competitive edge. Engineers are definitely essential as creators yet the success of a company or a society requires more. To be truly competitive a firm also needs excellent management and marketing skills. In short, you need an entrepreneur. However, it is often overlooked when it comes to the educational reform in Europe. Young people should be taught the essentials of ethical entrepreneurship and finance from the very first grades onwards. When creating and producing something innovative you cannot just stop half way – you also have to sell it. Thirdly, talking about competitiveness, we should not underestimate the role of universities and higher education either. Money is again an issue here. We should be much more open to finding additional sources of financing. As we know, in the United States the success of universities relies on relatively broad-based funding. We also know that European education systems are already facing tensions in light of the traditional role of a state. In my opinion, policy-makers should promote new and innovative ways of funding higher education which would be clearly beneficial for all parties.
Uncertainty is part of the cause as well: the exact date of the euro adoption is not known and there is no time to look deeper into the matter against the background of everyday life. Nevertheless, Estonians are one of the most pro-EU nations in the whole Union. More than 70 per cent of us hold positive or very positive views on the EU. However, the origins of euro scepticism and EU optimism are the same. The European Union and EU membership represent common European values, economic prosperity and security for our citizens. Our own currency stands for the same values: credibility, prosperity and economic security. The Estonian kroon represents these values for a very specific reason. Namely, our currency has been pegged to the euro for already 15 years. I cannot resist joking that from the monetary policy perspective we are one of the oldest members of the euro area. A whole generation of Estonians has grown up without having to ask what the interest rate of Eesti Pank is. Instead, they know that the value of the kroon will not change and interest rate changes come from Europe. Most probably, what matters for Estonians is that while being part of Europe we still wish to retain something our own. This is not the most convenient situation for Eesti Pank. On one hand, we should be proud of the trust we have earned at home. On the other hand, we know that joining the euro area is beneficial and necessary for the whole country.