Made in Germany | Studio Guest: Volker Treier | Deutsche Welle

Description: Estonia: Joining the Euro-Zone in 2011? Our studio guest on this topic today is Volker Treier of the German Chamber of Industry and Commerce expert for Eastern Europe and the Baltic countries.DW-TV: Volker Treier, first, is Estonia fiscally healthy enough to join the eurozone? Volker Treier: We see that they are healthy. The debt quota regarding the GDP and the fiscal deficit are both relatively low compared to traditional eurozone countries...even Germany and France. DW-TV: It's a problem right now, isn't it: A lot of countries can't keep that 3 percent of GDP rule. Can the eurozone right now with all its problems - Greece, Spain, Portugal, Ireland - can it afford to take on a new member? Volker Treier: It's not the best mood for a new candidate to enter the eurozone. But just to focus on the criteria - Estonia is worth, or has the value to enter the eurozone. Maybe except the inflation rate, which was very high in 2008 but meanwhile, during the crisis, it was very low. So, even that is not a factor. DW-TV: Would bringing a new member into the eurozone fuel the fire of speculators who are betting against the eurozone? Volker Treier: I would say the markets are functioning right now. Greece was betraying the eurozone, the European Commission. And right now it has to pay very high interest rates for its governmental bonds. That's the punishment. Therefore we should not bail them out right now. We should see whether they're able to bring up possible consolidation. And then