E-government as a modern concept of business environment improvement through digital government service is becoming strategic goal of high number of countries, particularly those in Europe. Paper provides key definitions in thematic of e-government and a compara-tive analysis of the performances of e-government in European Union. In second part of the paper there is a presentation of case study of Estonia, a country that even with obstacles and limits, is one of the best practice countries in area of establishing and functioning of e-government services. Estonian system could be a role model for similar size countries or those on same level of technological develop-ment, economic power and political position.