History of Estonia (1920–39) prospect of Vaps movement achieving electoral victory, Konstantin Päts and Johan Laidoner conducted a military coup d’état on 12 March 1934, arresting hundreds of Vaps members. A six-month state of emergency was declared, postponing the elections and political meetings were banned. During the interwar period Estonia had pursued a policy of neutrality, but the fate of Estonia in World War II was decided by the German–Soviet Nonaggression Pact and its of August 1939. In the agreement, the two great powers agreed to divide up the countries situated between them (Poland, Lithuania, Latvia, Estonia, and Finland) with Estonia falling in the
Economy of Estonia for Latvia. Estonia today is mainly influenced by developments in Finland, Russia, Sweden and Germany – the four main trade partners. The government recently greatly increased its spending on innovation. The prime minister from the Estonian Reform Party has stated its goal of bringing Estonian GDP per capita into the top 5 of the EU by 2022. However, the GDP of Estonia decreased by 1.4% in the 2nd quarter of 2008, over 3% in the 3rd quarter of 2008, and over 9% in the 4th quarter of 2008. The Estonian economy further contracted by 15.1% in the first quarter of