Forbes: other EU nations should learn Baltic lessons

RIGA - The influential U.S. business magazine Forbes has dedicated a lengthy article to overcoming the crisis in Europe, calling the Baltic States the triumph of good economics.

The eurozone crisis continues, like the rerun of a bad soap opera. The only constants are bailouts and rosy scenarios. Maybe Greece will hang onto the Euro at the cost of its economy. Maybe Italy will find political stability through another election. Maybe Great Britain will not leave the European Union. Maybe Germany will bail out all of its profligate neighbors - forever. However, the "austere" Baltic States outgrow their European neighbors, points out the magazine.

Forbesdescribes the Baltic economies before the crisis and the impact of the crisis. The magazine also mentions the Baltic austerity measures, which allowed them to avoid increasing state debt and achieve stable economic growth.

Forbes points out that the Baltic experience offers several lessons for the rest of Europe - not to run up big debts, not to engage in "an orgy of stimulus spending," make tough decisions early, maintain fiscal responsibility, emphasize budget cuts and, finally, not to rest on one's laurels.

"There is no painless way out of economic and financial crisis. But the experiences of Estonia, Latvia, and Lithuania demonstrate that there are solutions. Instead of desperately seeking bail-outs to preserve bloated social programs, troubled nations need to rediscover what is affordable, revive private sector growth, and adopt tough reforms. We all should hope that the other EU nations learn the Baltic lessons before it is too late," writes Forbes.