Estonia, EU – Baltic States, Financial Services, Legislation

Olli Rehn.

In the light of Greek problems and despite the careful notes voiced by the European Commission, Rehn’s cabinet members confirm that Estonia shouldn’t have any obstacles to face. Sceptics have primarily been questioning Estonia’s ability to fulfil Euro criteria in the future.

“Estonia has one of the best budgetary positions in the European Union,” one high-ranking member if Rehn’s office said yesterday. Thus Estonia is “on the right track” keeping the budgetary deficit and state’s debt burden under control and the Commission “has no worries” in this respect.

The Commission at least won’t sent any extra conditions not listed in the Maastricht agreement for Estonia to join the euro area. “Several extra indicators have been discussed but the rules are unambiguous and clear. Drawing a comparison from sports – Olli Rehn respects the rules of the game and won’t change them at half-time,” said another member of Rehn’s office.

Influential Euro officials confirm that Estonia shouldn’t have any obstacles to face to get the European Commission’s recommendation and the ball is in the court of politicians as the EU finance ministers will make Estonia’s accession decision in the middle of June most likely.

The sceptical Germans and European Central Bank that calls for carefulness can be convinced of Estonia’s euro fitness besides the recommendation of the Commission also thanks to the marathon session of the EU finance ministers that ended early Monday morning where after an 11 hour discussion, a support mechanism of up to 750 billion euro was agreed upon for euro states that find themselves in monetary trouble comparable to that of Greece.

Estonia has also agreed to the package; in case of the presumed joining of the euro area, Estonia has to contribute to the government-guaranteed loan starting next year if need be in line with our 0.179% stake in the European Central Bank. Thus, if a troubled state gets a 10 billion euro loan, Estonia’s contribution would be 17.9 million euro or 280 million Kroons.