This follows arguments from both the European Parliament and European Commission that the rules on running as an Estonian candidate at European Union elections disproportionately favor wealthier candidates and parties and so restrict political competition, and therefore democratic processes.

The size of an electoral deposit a European Parliament candidate from Estonia is liable for is one of the highest in the EU; the rules set for Estonian political parties in Estonia have also been criticized by the Organization for Security and Co-operation in Europe (OSCE), the main international electoral watchdog body in the region.

That criticism mainly related to the state funding of political parties. In 2020, OSCE noted that the state should also help political parties which do not have enough annual support to conduct election campaigns. Among other things, OSCE also noted that the conditions for the deposit paid when registering candidates should also be relaxed.

This is now under review at the ECJ, following concerns over its legality and fairness.

Legal advisors from the European Parliament have argued that a "significantly high deposit is incompatible with European legal norms," as it favors financially well-off candidates and so hampers democratic participation and contradicts the principle of universal suffrage.

According to the European Commission, while Estonia's goal of preventing non-serious candidacies by setting the deposit bar high is "reasonable," the commission has questioned whether the deposit being set at five times the minimum wage requirement is proportionate.

At the same time, the commission acknowledged that member states may impose deposit requirements as a principle, providing they can justify their purpose.

Similarly, the commission has argued that requiring a candidate to secure 5 percent of the vote or lose their deposit creates unnecessary barriers to entry, citing the requirement as excessive compared with other member states.
The European Parliament added the financial burden on candidates falls especially hard on smaller parties or those with limited resources.

An alternative way to demonstrate seriousness could be via signature collection, which would reduce financial pressure, the parliament argued.

The European Parliament also recommended that election administration costs should be borne out of the state budget, and not be dependent on candidate deposits.

The Supreme Court in Estonia has sought a preliminary ruling from the EU Court on the issue and whether the deposit requirement aligns with EU law, as the deposit requirement continues to stir legal and political debate at home as well.
Nele Siitam, a Supreme Court Judge, is among those who have noted that the ECJ's stance on such provisions could influence the broader legal framework governing elections EU-wide.

As the case progresses, questions remain over the future impact on smaller political parties like the Estonian Greens (Rohelised), whose candidates had been initially rejected ahead of last year's European elections due to insufficient deposit payments.

The Greens challenged the decision, arguing the deposit requirement was excessive.

The Supreme Court of Estonia agreed to review the case, with a ruling expected by the end of the year.

A key provision in the EU Charter of Fundamental Rights states: "Members of the European Parliament shall be elected by direct and universal suffrage in a free and secret ballot."

Restrictions on fundamental rights must be "necessary and meet objectives of general interest recognized by the EU or protect the rights and freedoms of others," it is stated.

The European Parliament also noted that the Estonian Greens received only 986 votes in 2014, rising to 5,824 votes in 2019.

Last April, as the European Parliament elections approached, the Greens submitted a list of nine candidates, the maximum permissible. The National Election Commission (VVK) however registered only two candidates as the party had contributed only €8,200 in deposits. Paying in full for the full list would have cost the party €36,900.

Political parties in Estonia receive state budget support in direct proportion to representation at the preceding Riigikogu election and above a 2-percent threshold. For example, the Reform Party, with 37 Riigikogu seats, received €1.9 million in state support in 2024, compared with €30,000 taken in by the non-parliamentary Parempoolsed party.

The latest minimum wage figure in Estonia is €886 per month for 2025.

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