Eurozone newcomer Estonia urges more action on crisis

(TALLINN) - EU efforts to end the debt crisis will not last unless more is done to bring down economic barriers and harmonise policy, the prime minister of eurozone newcomer Estonia warned in a letter released Tuesday.

"Global and European efforts have been taken to avoid another Great Depression," Prime Minister Andrus Ansip told his fellow 26 European Union premiers in a letter which his office said was sent on Monday.

"But our efforts have also highlighted the need for a comprehensive upgrade of the EU's economic integration and the governance of the single currency. This should build on, but not limit itself only to steps we have already agreed," the centre-right prime minister said.

"Today's problems ensue from the omissions of the past. Our achievements today will be short-lived and limited if we do not fix structural problems both in economy and governance," he warned.

Ansip, whose Baltic nation of 1.3 million became the newest eurozone member on January 1 after joining the EU in 2004, underlined a "lack of depth" in EU economic integration.

"Protectionist instincts all over the continent are still vibrant, and during the crisis, have become even more so. New European initiatives are cautious, as the European common good is challenged by narrow national interests," he said.

Estonia regained independence in 1991 following five decades of Soviet rule and switched rapidly to the free market, carving out a reputation as a hi-tech "tiger".

The country, which has long had a reputation for conservative fiscal policies, suffered a deep 2009 recession sparked by the global crisis.

It launched a biting austerity drive during the slump, with one of the goals to help meet eurozone rules -- which sceptics noted were breached by most existing members of the 17-nation currency bloc.