Baltic Tiger

Economically, parallel with the political changes, and the democratic transition, – as a rule of law states – the previous command economies were transformed via the legislation into market economies, and set up or renewed the major macroeconomic factors: budgetary rules, national audit, national currency, central bank.

Later the Stability and Growth Pact set stricter rules through national legislation by implementing e g the regulations and directives of the Sixpack, because the financial crisis was a shocking milestone.

[1] After 2000, the Baltic Tiger economies implemented important economic reforms and liberalisation, which, coupled with their fairly low-wage and skilled labour force, attracted large amounts of foreign investment and economic growth.

[5] The global financial crisis triggered the collapse of the cross-border capital flows, causing some of the most severe recessions in Europe.

As the crisis swept across Eastern and Central Europe the economic reversal intensified: Estonia's GDP dropped by -16.2% year-on-year, Latvia's by −19.6% and Lithuania's by −16.8%.