OREANDA-NEWS. May 27, 2008. Prime Minister Andrus Ansip met with British-Indian businessmen and investors, with whom the Estonian investment environment and the cost-effectiveness of long-term investments were discussed. The British-Indian entrepreneurs found that Estonia is attractive for foreign investments in the long run as well, reported the Official website www.valitsus.ee.

Andrus Ansip mainly introduced to the British-Indian businessmen the liberal economic model that has brought success to Estonia, as well as the simple tax system and IT solutions. The Prime Minister confirmed that Estonia will continue with the balanced budget policy and the fiscal policy principles that have been beneficial for the development of the country. The Prime Minister also noted that the Estonian economy needs structural changes.

He introduced the Estonian investments into research and development to the businessmen as well. “From 2001 to 2006, Estonia was the country that increased its expenses on research and development at the fastest rate among the Members of the European Union, if we consider the ratio of the expenses to GDP,” said the Prime Minister. He added that this ratio is not yet sufficient, but the existence of the experts who can implement the innovations must also be considered. In 2006, the expenses on research and development activities made up 1,14% of GDP, and according to the initial estimates, this ratio was 1,3% last year.

The British-Indian businessmen acknowledged that Estonia has turned from a country that earns fast profits into a country to which investments are made with long-term considerations. Considering the liberal economic environment of Estonia, the tax system and speed of adapting to changes and development, the businessmen who visited Stenbock House plan to take steps to turn Tallinn into the financial centre of the Nordic and the Baltic countries. They stated that in the long term, the intellectual abilities of people are ever more appreciated when investing.

The Prime Minister said that Estonia will apply all means to have the stability and trustworthiness of the local business environment guaranteed in the future as well with transparent regulations, clear ownership relations and a simple tax system. Ansip also noted that Estonia is making the labour market regulations more flexible, which is also important in attracting foreign investments.