CEIS Releases Report on Estonia, Places Country on Watch List

WASHINGTON, July 5, 2011 -

- Report cites emerging
pattern of onerous government intervention as barrier to continued
growth

The Council for European Investment Security (CEIS) today
released a new report entitled “Trials of a Baltic Tiger: Estonia’s
Economic Landscape Since the Fall of Communism.” While the country
has historically performed well, the report finds that in the past
several years, the Estonian government has intervened in the
private sector in a manner which raises questions among the
international investment community regarding the country’s
attractiveness as a place for international investment.

Concurrently with the report and in light of these findings,
CEIS also added the country of Estonia to the organization’s Watch
List. The Watch List identifies countries that threaten to erode
financial norms and drive investment away from the European
continent.

The paper examines Estonia’s economic rise since the fall of
communism and makes note of the country’s embrace of pro-western,
pro-market reforms that led to a remarkable period of positive
economic growth. Recently however, several cases have emerged that
suggest a move away from these market fundamentals. Collectively,
they send a concerning message to the international investment
community as it examines Estonia as a destination for foreign
direct investment (FDI). Specifically, the report makes note of two
disputes that have occurred in recent years over the privatization
or nationalization of Estonian companies in the transportation and
utility sectors. The paper notes that, in light of the country’s
otherwise positive economic performance since the fall of the
Soviet Union, the cases identified raise questions about the future
of Estonia’s fitness for investment and suggests remedies to avoid
a diversion of international capital investment. The report can be
read in its entirety on the CEIS website here: href="www.investmentsecurity.org/">www.investmentsecurity.org

This is the second in a series of papers published in recent
months by CEIS that examines economic landscapes throughout central
and Eastern Europe.

The Council for European Investment Security (CEIS) was
established to promote rule-of-law, transparency and financial
accountability in Eastern Europe. With a number of
high-profile cases eroding established financial norms in the
region, Foreign Direct Investment (FDI) is migrating away from
Europe to other more dynamic and accommodating markets.
CEIS evaluates markets at the country level, identifying and
targeting negligent nations whose lax policies allow economic
malfeasance to thrive, while also promoting practical solutions to
promote investment, stability and positive growth in at-risk
markets. Chaired by former Under-Secretary of Commerce for Economic
Affairs Robert J. Shapiro, CEIS maintains the CEIS Watch List to
identify and reverse negative trends that discourage investment,
stunt growth and drive capital from Europe to other regions of the
world.

+1-800-454-3196, info at investmentsecurity.org