Estonia Upgraded

While much of the EU is at odds with rating agencies, Estonia’s credit rating was raised to AA due to its record economic growth of 8.5% since the first quarter of 2010, putting it above the 26 other EU members.

The country has attracted businesses by doing away with corporate taxes entirely and placing a 21% flat tax on everything else, from VAT to income.

Estonia has no sovereign debts due to Prime Minister Andrus Ansip’s draconian spending cuts after the 2008 financial crisis,which nonetheless saw him re-elected.

Still, Estonia continues to have the EU’s highest expenditure on culture, and comes fourth in education spending.