Estonia embraces euro; starts changeover as 17th euro nation

A former Soviet republic and a member of the European Union since 2004, the Republic of Estonia became the 17th nation to adopt the euro as its currency from 1 January 2011, and has started a successful changeover to euro from its kroon, the national currency since 1992.

The nation's prime minister Andrus Ansip became the first Estonian national to withdraw the new currency from a cash machine, marking the beginning of the integration of the small Baltic state of 1.3-million population with the mighty euro zone.

A EU press release yesterday stated, ''the changeover is running smoothly and according to plan.''

The kroon will be phased out during the transitional two-week dual-circulation period during which both currencies will have legal tender status in Estonia, despite the prevailing nostalgia for the old currency that came into circulation following the country's independence from Soviet rule in 1991.

According to a survey held by the European Commission, two days before the switchover to the new currency, about 50 per cent of Estonians had euro banknotes and 60 per cent had euro coins from trips abroad or through an exchange in a bank or post office.

It was observed that virtually all of the ATMs were distributing euro notes as from the first hour of 1 January, and most banks were open for cash service on Saturday and Sunday to facilitate a smooth transition.