Outsourcing in Estonia


Capital: Tallinn

Official EU language(s): Estonian

EU member country: since 1 May 2004

Currency: euro. Estonia has been a member of the Eurozone since 1 January 2011.

Schengen: Estonia has been part of the Schengen area since 21 December 2007.

Figures: Geographical size – population – gross domestic product (GDP) per capita in PPS

Political system

Estonia operates as a parliamentary republic. The prime minister, nominated by the president and approved by parliament, oversees the executive power vested in the government. The president, elected by Parliament or electoral college for a 5-year term, serves as the head of state. The Parliament comprises 101 members elected every 4 years. Estonia is divided into 15 counties and 79 municipalities.

Trade and economy

In 2020, Estonia’s economy was primarily driven by wholesale and retail trade, transport, accommodation, and food services (20.5%), industry (19.2%), and public administration, defense, education, human health, and social work activities (16.7%).

Internally, 66% of Estonia’s exports are traded within the EU, with Finland (16%), Sweden (10%), and Latvia (9%) being the main destinations. Outside the EU, 8% of exports go to the United States and 6% to Russia.

Regarding imports, 75% originate from EU Member States, with Finland (13%), Germany (10%), Latvia, and Lithuania (9%) being the primary sources. Outside the EU, 8% come from Russia and 5% from China.

Estonia in the EU

European Parliament

Estonia is represented by 7 members in the European Parliament.

Council of the EU

Representatives from the Estonian government attend Council meetings to adopt EU laws and coordinate policies.

Presidency of the Council of the EU

Estonia held the Presidency of the Council of the EU from July to December 2017.

European Commission

Kadri Simson serves as the Commissioner nominated by Estonia to the European Commission, responsible for Energy. The Commission maintains representation in Estonia.

European Economic & Social Committee

Estonia has 6 representatives on the European Economic and Social Committee, offering consultation on proposed laws affecting work and social situations.

European Committee of the Regions

Estonia has 6 representatives on the European Committee of the Regions, ensuring regional perspectives are considered in proposed laws.

Permanent representation to the EU

Estonia’s permanent representation in Brussels serves as its main communication channel with EU institutions, ensuring effective pursuit of the country’s interests and policies in the EU.

Budgets and Funding

Estonia’s contributions to the EU budget are calculated fairly based on its economic means to support programs and projects across all EU countries.

Figures on the EU budget, revenue, and spending:

EU-funded projects in Estonia

Contributions to the EU budget from Estonia support various programs and projects across all EU countries, including initiatives like infrastructure development, research, and environmental protection.