Estonia Location:
59°26'N, 24°45'E
Estonia Geography:
Estonia lies on the eastern shores of the Baltic Sea immediately across the Gulf of Finland from Finland on the level northwestern part of the rising east European platform between 57.3° and 59.5° N and 21.5° and 28.1° E. Average elevation reaches only 50 metres (164 ft) and the country's highest point is the Suur Munamägi in the southeast at 318 metres (1,043 ft).[15]
Oil shale (or kukersite) and limestone deposits, along with forests which cover 47% of the land, play key economic roles in this generally resource-poor country. Estonia boasts over 1,400 lakes. Most are very small, with the largest, Lake Peipus, (Peipsi in Estonian) being 3555 km2 (1372 sq mi). There are many rivers in the country. The largest are the Võhandu (162 km), Pärnu (144 km), and Põltsamaa (135 km).[15] Estonia also boasts numerous bogs, and 3794 kilometers (2,357 mi) of coastline marked by numerous bays, straits, and inlets. The number of islands and islets is estimated at some 1,500. Two are large enough to constitute their own counties: Saaremaa and Hiiumaa.[15].
Estonia People:
Population
- 2006 estimate 1,324,333 (151st)
- 2000 census 1,376,743
- Density 29 /km2 (173rd)
75 /sq mi
Estonia Government:
Government Parliamentary democracy
- President Toomas Hendrik Ilves
- Prime Minister Andrus Ansip
Estonia Economy:
As a member of the European Union, Estonia is part of the one of the world's largest and most tightly integrated trade blocs.
In June 1992, Estonia replaced the ruble with its own freely convertible currency, the kroon (EEK). A currency board was created and the new currency was pegged to the German mark at the rate at 8 EEK for 1 DEM. When Germany introduced the euro, the peg was changed to 15.6466 kroon for 1 euro. The Estonian government finalized the design of Estonia's euro coins in late 2004, and is now intending to adopt the euro as the country's currency in 2010, later than planned due to continued high inflation.
In 1994, Estonia became one of the first countries in the world to adopt a flat tax, with a uniform rate of 26% regardless of personal income. In January 2005 the personal income tax rate was reduced to 24%. A subsequent reduction to 23% followed in January 2006. The income tax rate will be decreased by 1% annually to reach 18% by January 2011.
In 1999, Estonia experienced its worst year economically since it regained independence in 1991, largely because of the impact of the August 1998 Russian financial crisis. Estonia joined the WTO in November 1999. With assistance from the European Union, the World Bank and the Nordic Investment Bank, Estonia completed most of its preparations for European Union membership by the end of 2002 and now has one of the strongest economies of the new member states of the European Union, which it joined on 1 May 2004.
Since January 1, 2000, companies have not had to pay income tax on re-invested income. However, tax is due on profit distributions (including hidden distributions) at a rate of 22%. Despite the fact that only the moment of taxation was shifted from earning profits to their distribution, leaving the rest of the corporate taxation system mostly unchanged, the current legislation is said to be in violation of one of the fundamental freedoms of the European Union — free movement of capital. Estonia is to remove this hindrance by January 2009 when the temporary derogation expires, though Estonia has an option at that point to institute a very low corporate income tax, either 10%, or even 0%.
The Estonian economy is growing quickly, partly due to a number of Scandinavian companies relocating their routine operations to the country and Russian oil transit using Estonian ports. Estonia has a strong information technology (IT) sector. Its GDP PPP per capita is at $17,802, the highest of the Baltic states, while its unemployment rate was 4.2% in July 2006, one of the lowest in the European Union.[16]
Although the annual GDP growth rate in 2006 amounted again 11.4%, some of the leading financial institutions and rating agencies (Danske Bank, S&P, IWF) expressed serious concerns about possible overheating syndromes of the booming economy. A number of the main economic indicators (e.g. inflation at the 4.5%, significantly negative trade balance and private credit level) partly support this opinion.
Estonia More Information:
http://en.wikipedia.org/wiki/Estonia | 
