Budget, Estonia, EU – Baltic States, Financial Services

Angela Merkel.

Merkel and Laar discussed the situation in Europe and challenges it faces, one of the biggest of which they considered getting out of the threatening debt crisis, which is deepened by demographic problems.

Merkel said that one possibility is to write the requirement of budget balance into the Constitution, which Germany has just done. She said that the step has justified itself in Germany, helping to get budgets in order and raising the general feeling of security towards the future.

Laar introduced to Merkel the idea of PRU to supplement the Estonian Constitution also with the budded balance requirement. The officials agreed that since this topic is of wider interest in Europe at present, it should be seriously discussed in the European People’s Party.

“Currently we have agreed with our coalition partner Reform Party that we will include the topic on budget balance into the budget base law, but we will certainly will continue the discussion over adding it to the Constitution,” said Laar.