Mart Helme, the chairman of People's Conservative Party (EKRE), said that he is negotiating with the Party of People's Unity (RÜE), to form a joint electoral list for the spring elections.
Helme said that the joint list aims to reduce the disadvantage the two small parties have, in comparison to the big parliamentary parties.
According to Helme, one of the greatest obstacles they face is the lack of funding. Whereas Reform Party's yearly income is around 2.2 million euros, EKRE's takes in around 800 euros a month.
"The parliamentary parties revel in the money the pocket from the state budget. We, on the other hand, are self-financed by membership fees and personal donations. This makes a large difference. We saw during the European Parliament elections how the Reform Party and the IRL spent hundreds of thousands of euros on election campaigns, when we had to do the same with only a few tens of thousands," he told ETV's "Aktuaalne Kaamera".
As the law does not allow electoral unions, the two parties would have run under one name.
Consultations between EKRE and RÜE have been ongoing but they are yet to reach a decision.
Both parties agree that Estonian needs an overarching state reform. The cosmetic changes in the tax system that the large parties propose are no longer enough, said Kristiina Ojuland of the RÜE.
Helme said EKRE has written down their own list in case the negotiations fail through.
The Free Party has decided to decline the offer to join as well, preferring an electoral list opened to non-members.
"Merle Jääger has announced her candidacy and we have discussed this option with Peeter Volkonski. I hope that a the list will include a moderately green faction, including Jaan Riis and other people," said party leader Andres Herkel.
He added that the Free Party's platform also differs considerably from those of EKRE and RÜE.