What to do with Estonian economy?!

A detail from Postimees.ee, the website Estonian daily newspaper.

Estonian ex-prime and author of the first economic reforms Mart Laar proposes to list the state owned companies. But is this the way out of the present situation, that resembles the one in Portugal some years ago: after joining the EU inflation is high due to convergation, but growth lags behind because of high government expenses. And the expenses mushroomed on low interest rates, that lead to huge bubble in real estate sector. But now, with rates twice as high the real-estate prices are plummeting, and so the whole economy.

Or is the solution bringing down government expenses, to the pre-bubble period? Plus flat tax rate for individuals and companies, let's say 15% as it is in Russia, or even 14%, as lower tax rate keeps returns high. Especially in post-Soviet states, whereas stealing from the state is regarded as heroism, not crime.

Or, as Joakim Helenius, a Finnish businessman in Estonia has pointed out, English as the second state language in Estonia. That will help to bring in foreign businesses, rich people, and after them come the brains.

Just now, it seems, Estonia is on its track to marginalisation, becoming a backyard of the EU, as young professionals, the brains have drained away, the latest sweep after joining the EU, and there's nobody left to build up the country, and the economy. Well, and the elderly Estonians, who have stayed, are poor both in finances and health, as 50 years of Soviet unhuman totalitarian regime has leaved its wounds.