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There is something about the Baltic states that can be called reasonableness or a sort of down to earth practicality. Very few countries can implement such an atrocious austerity program as Latvia is doing without descending into chaos of strikes and social protests. Clearly, this is no Greece that started to rip itself to pieces by its own hands in the most critical moment.

This ability to keep their cool in moments of crisis is the only reason to remain optimistic about this Baltic trio, because otherwise their situation is worse than bad. All had their economies overheated, CAs deep in red, at the beginning of the crisis. Two of their main markets, Russia and Germany, are among countries most affected by the crisis. Germany is projected to shrink by several percents next year. Russian economy is deteriorating with such an astonishing speed that even many Russoskeptics have been left amazed. For Latvia and Estonia this is really a moment of truth.