Justice Chancellor Challenges Constitutionality of European Stability Mechanism
Chancellor of Justice Indrek Teder has concluded that the agreement establishing the European Stability Mechanism (ESM) is in conflict with the Estonian Constitution because it allows the aid program to make decisions without the consensus of all countries involved in it.
Specifically, the provision under scrutiny sets out that, in order to adopt future policies once the ESM has been established, a full majority is not needed, but rather an 85 percent vote of support from member states. Teder has sent the provision, signed in Brussels on February 2 but not yet ratified by Parliament, to the Supreme Court for review.
ESM was created by the Eurozone countries as a response to the debt crisis. Although the Justice Chancellor said he is not in principle against the assistance to distressed Eurozone members, which he said protects the interests of Estonia as well, the provision at hand does not in his view meet the principles of a parliamentary democracy.
“Essentially this type of fast-track procedure for providing financial aid to countries could create a situation in which Estonia is forced to make a monetary contribution but cannot influence the conditions of providing financial aid,” said a statement from the legal ombudsman. “Parliament must have a real say in the matter.”
Estonian taxpayers are giving 150 million euros and an additional 1.3 billion euros in guarantees to ESM, according to the current agreement. Although this is minuscule compared to the contribution of some other Eurozone members, the latter figure still makes up 8.5 percent of Estonian GDP - on par with Germany (7.4 percent), France (7.3 percent), and Italy (8 percent).
Despite a contribution that is sizable for Estonia, the country only has 0.18 percent of the vote in deciding the subsequent fate of ESM.
“The Estonian public has a right to have a say in how ESM uses its resources. The exclusion of the Estonian Parliament could call into question the legitimacy of Estonia's participation in ESM,” the statement said.
Ott Tammik