The European Union Affairs Committee of the Riigikogu (Parliament of Estonia) discussed the reform proposals presented by Greece, which show how the country intends to meet the requirements for the new international bailout package, with the Minister of Finance Sven Sester. The Committee gave the Minister of Finance the mandate to give the European institutions on behalf of Estonia the right to start negotiations with Greece on giving financial assistance if there is sufficient reason for that according to the assessment of the European Commission.
“Today the European Union Affairs Committee gave the Minister of Finance the mandate, so that he would be able to operatively authorise the starting of negotiations with Greece in the Eurogroup. The letter of the Greeks is a positive step, but nothing has been decided yet at the level of the European Union and Greece. The Greek parliament has to give its approval to the submitted proposals, and only then it will be possible to start negotiations at the euro zone level,” Chairman of the European Union Affairs Committee Kalle Palling said.
“The negotiations should show if it is possible to restore the functioning and sustainability of the state of Greece on the basis of reforms,” Palling added.
The proposals made by Greece concern pension reform, reduction of tax differentiations, VAT reform and general improvement of tax collection.
The ministers of finance of the Eurogroup will discuss the proposals submitted by Greece on Saturday. The European Commission, the European Central Bank and the International Monetary Fund (IMF) will also give their assessment of the proposals.
When the preliminary agreement on giving financial assistance to Greece has been achieved, the final decision of Estonia has to be approved by the plenary of the Riigikogu.