National Share of Firewall Now at €1.8 Billion
The new firewall agreed by the EU's finance ministers in Copenhagen also means an increased burden on Estonia, including having to make payments into the rescue fund twice as fast - that is, if the Supreme Court says the stability mechanism is constitutional.
Estonia's share of the guarantees now stands at 1.8 billion euros, said the Finance Ministry's EU department adviser Meelis Meigas in Postimees.
The meeting in Copenhagen last Friday decided to combine the 500-billion-euro Stability Mechanism (ESM) with the 200 billion remaining funds from the EFSF. With the addition of the loans already granted to Greece and other ailing countries, the eurozone’s firewall intended to stop debt contagion from spreading will exceed 800 billion euros.
The Eurozone has also taken the commitment of paying an additional 150 million euros into the International Monetary Fund.
As far as Estonia is concerned, it faces two payments this year - one in July and the next in October.
But as the Chancellor of Justice raised questions in March about the constitutionality of the treaty establishing the ESM, the matter is still pending. A decision from the Supreme Court is due on May 8 and the national parliament has yet to ratify the treaty.
Parliamentary committee members have said the details of the payments can be discussed only once the treaty is ratified.
Kristopher Rikken