ANNUAL REPORT 2010 - Konkurentsiamet
ANNUAL REPORT 2010 - Konkurentsiamet
ANNUAL REPORT 2010 - Konkurentsiamet
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
FOREWORD<br />
Dear Reader,<br />
The year <strong>2010</strong> was the third year of activity for the new Competition Authority. The general<br />
economic development in <strong>2010</strong> can be characterised by the preparation for adopting the<br />
euro, the end of the economic depression and the first signs of economic recovery, but also<br />
continually high unemployment and accelerating inflation.<br />
Adopting the European single currency undoubtedly has a significant meaning. Besides being<br />
the means of payment, the Estonian kroon was the symbol of our independence, freedom and<br />
cultural self-awareness. It is a little sad that we can no longer keep banknotes with pictures of<br />
our luminaries – Jakobson, Koidula, Tobias, Tammsaare, Hurt, Keres, Baer, Raud - in our<br />
wallets. Nevertheless, I am still convinced that our cultural memory is strong enough and<br />
important people from our history will not become less significant.<br />
At the same time, adopting the euro and becoming a full member of the OECD are essential<br />
for integration. Now we are in a position to state that the more than a century-old dream of<br />
Mr Gustav Suits: “Let us remain Estonians, but let us also become Europeans!” has been<br />
fulfilled. I am convinced that our national security is also more stable today than ever before.<br />
Being a member of NATO, the EU as well as the OECD and having a global currency as the<br />
means of payment raises the question as to what is next. It seems that we have accomplished<br />
all and one may doubt if we have any destinations remaining. There is an answer to the last<br />
question. We do have many high goals to follow – economic welfare, wealth, and higher<br />
Human Development Index, just to name a few. Estonia is not among the wealthiest countries<br />
in the EU, GDP per capita is remarkably lower than the EU´s average, and thus it is important<br />
not to rest on your laurels, but keep on moving forward.<br />
The Estonian Competition Authority plays a certain role in order to achieve previously<br />
mentioned goals and to promote economic development and a better business environment.<br />
Here we can review some critical subjects in <strong>2010</strong>. Let us take the price increase of foodstuff as<br />
an example. Estonia is a country with a small and open economy and the price increase on<br />
world markets shortly carries over to our prices. That instantly raises a question if the state and<br />
government have specific means for repressing price increases, and there are not very many<br />
direct options. The turnover tax could be lowered, but that would only provide a short-term<br />
effect, because it is not possible to cut it to zero and below that it would already be direct<br />
subsidising. What the state can do is creating a better business environment. It means that<br />
equal rules apply to all market participants, market barriers for possible new entrants have<br />
3