Ratas on EU joint loan: For us to do well, Europe must also do well

Prime Minister Jüri Ratas (Center).
Prime Minister Jüri Ratas (Center). Source: Siim Lõvi /ERR

According to Prime Minister Jüri Ratas, the economic recovery measures to restart European economy will directly and indirectly support Estonian entrepreneurs and employees.

ERR News wrote on Thursday that the Estonian government decided on Estonia's stances on the European Union's plan for economic recovery and on the long-term EU budget for 2021-2027.

According to Prime Minister Jüri Ratas, the aim of the recovery plan is to help member states bring the European economy out of the crisis as quickly as possible and do so in a way that increases investments in the green and digital revolution and supports Europe's resilience to crises. "The countries of the European Union must react decisively and quickly so that the impact of the crisis on the economy and thus the well-being of people is as small as possible and the recovery from it would be quick," said Ratas.

The most important markets of Estonian entrepreneurs are located in Europe. Thus, the economic recovery measures in Europe are both directly and indirectly important support for Estonian entrepreneurs and employees.

The Prime Minister added: "Our economy is so closely linked to other Member States that our people's well-being depends on the well-being of others. For us to do well, Europe must also do well."

It is important for Estonia that the European Union has a budget for the new year. In the context of the 2021–2027 budget plan, the government considers it important to support the Member States with additional cohesion policy funding, which will help to support employment, businesses, and the health care system quickly under flexible conditions, if necessary.

It is also important to increase funding for businesses and the support of the Rural Development Fund for rural areas and the agricultural sector to overcome the crisis. Harmonisation of direct agricultural support continues to be important for Estonia. The urgent actions needed to relaunch the economy should start this year, with additional funding for the current 2014–2020 budget period.

The investments made to revitalise the economy must be forward-looking and help to achieve the European Union's digital transition, sustainable investment to achieve climate goals, and strengthen the internal market. To do this, the government is ready to consider taking a one-off, exceptional, temporary, and clearly timed loan to finance the recovery plan through the EU budget.

To finance the EU budget and the recovery facility, the government does not support new sources of European revenue, i.e. new own resources, and prefers to continue funding as before, mainly through national wealth-based contributions. Member States must maintain unanimity in tax matters. In addition, the budgetary burden of countries with below-average living standards should not increase more than that of richer countries.

The EU heads of state and government will discuss the European Economic Recovery Plan and the next long-term EU budget for 2021–2027 in a video conference next Friday, 19 June. The adoption of the recovery plan and the next long-term budget requires the unanimous support of all EU Member States and the consent of the European Parliament. Member States want to reach an agreement by the end of next month.


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Editor: Kristjan Kallaste

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