Page 59 - (DK Eyewitness) Travel Guide - Estonia Latvia & Lithuania

THE HIST OR Y OF EST ONIA 57

Independence
The years 1992 and 1993 turned out
to be a challenging time for Estonia.
The immediate reintroduction of the
kroon as the national currency wiped
out savings accumulated in Soviet
roubles and inflation was not
immediately curtailed. Prime Minister
Mart Laar, who served his first term
from 1992 to 1994, coined the phrase
“the little coun try that can” and it
Olympic torch inaugurating the yachting events held in 1980, Tallinn did, very quickly. Many suffered
temporarily, as factories closed and
foreign newspapers, direct-dial international collective farms were abandoned, but few
phone calls and a range of consumer suffered long-term as tourism, Finnish
goods not seen in Tallinn since 1940 were assembly plants and inter national call
introduced. After the Games, all these quickly centres quickly absorbed any spare labour.
disappeared, but the memory of them did Returning to power in 1999, Laar was able
not; frustration with the USSR turned in the to steer the country out of the financial
1980s to total disillu sionment as Finnish TV crisis that stemmed from the collapse of
showed the different lifestyle Russia’s economy in 1998.
being enjoyed just 50 km From 2000 onwards, Estonia
(31 miles) from Tallinn. enjoyed record growth and
When Mikhail Gorbachev increased prosperity. Many
came to power in 1985 as public works projects were built
General Secretary of the with European Union funds and
Communist Party of the Soviet foreign banks gave generous
Union, Estonians took private loans. This ended with
advantage of his liberal policies the global financial crisis in 2008,
to revitalize the cultural scene and although Estonia was not as
and to restruc ture factories badly affected as other Baltic
and small businesses. Plans to Former Estonian prime minister nations, the economy slowed
reform the economy were Mart Laar considerably. In July 2010,
made, the key ele ment of which was the Estonia was given approval to enter the
introduction of a stable currency. At the Eurozone. In January 2011 the euro
time of the collapse of the USSR in 1991, replaced the kroon as legal tender.
Estonians were better prepared, at least in Relations with Russia have improved
theory, for a capitalist economy than were markedly, although diplomatic, cultural
any of the other Soviet republics. and even trade hiccups still occur.

1980 Olympics sailing 2011 The euro replaces the
and yachting events open President Lennart Meri (1929–2006) kroon as Estonia’s currency;
in Tallinn 2004 Estonia Toomas Hendrik Ives
1992 Lennart Meri joins NATO re-elected president for a
elected as president
and EU second term
1975 1985 1995 2005 2015
1991 Estonia 1994 Russian troops 2007 World’s first
declares withdrawn; MS Estonia national Internet
independence sinks, claiming 850 lives election held
Pirita Yachting Centre, venue for
1980 Olympics yachting events