tag:blogger.com,1999:blog-1443720106009957151.post2106337137436722610..comments2009-09-18T10:14:33.770+02:00Comments on Eastern Europe Economy Watch: Inflation Surge In Estonia Raises Questions About 'Soft Landing'Unknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1443720106009957151.post-56472493414182358392007-10-15T13:06:00.000+02:002007-10-15T13:06:00.000+02:00One thing that does not help the transition to a "...One thing that does not help the transition to a "soft landing is yet another in a series of expanding budgets. How can a budget rise of over %24 versus 20% last year be compatible with external stability?<BR/><BR/>It seems that the temptation to spend the extra one-time revenue from the capital deepening process is just too strong. Pensions are slated to double by 2012 in a declining workforce environment.<BR/><BR/>The social tax is already high for the competitive neighborhood, a total of around one quarter of the total wage cost. <BR/><BR/>Compounding the risk is a labor law environment that ranks 151st on the world bank "doing business around the world" rankings. <BR/><BR/>Talk of the lower price level and rising productivity highlight one-time factors that may not "smoothly adjust" in concert with the capital inflow.<BR/><BR/>Sorry to go on about a subject that you understand far better than I do.Jim Hasshttps://www.blogger.com/profile/09827035709880926814noreply@blogger.com