Over half of European countries today are small nation states. Among the members of EU one third have population less than 6 millions. The legitimation of small states does not lie solely on their economic performance; they are primarily valued due to their role in ensuring cultural and social sustainability for their people. After all, the survival of Europe’s cultural traditions and distinctive social character, which is usually contrasted with the American “melting pot” model, depends on this. Looking at the reactions of different nations during the crisis, it is a good reason to reread Max Weber’s discussions regarding the role of the Protestant mentality in the early years of capitalism and to ask what role people’s deep and distinctive historical and cultural traits play in today’s world economy.

The first victims of the crisis in Europe were the small countries: Iceland, Ireland, Estonia, Latvia and Lithuania. The financial crisis clearly demonstrated that surviving the pitfalls of globalisation is not just a problem for post-communist countries. When the crisis broke out, the free fall of the Baltic economies, which early had attracted attention with their rapid growth, caused some Western experts to smirk derisively. However, it was these countries that were able to implement the most radical measures to emerge from the crisis. In a situation where much larger and more powerful nations could not find the strength to struggle out of economic and social chaos, the tiny Baltic countries have become models of resolve. The Economist ended the article devoted to the Baltic countries by saying, “Good- bye “eastern Europe”; welcome to the “new north””. This is a remarkable testimony to that fact that not only Estonia, but all three Baltic states together, are starting to be viewed in the West as part of the northern, not eastern, part of Europe.