The government will submit a draft to the European Union Affairs Committee to commence negotiations over the terms of Greek stability support

The government received an overview of the Greek situation at the cabinet meeting today and decided to submit a draft to the European Union Affairs Committee of the Riigikogu for taking a position, with which institutions are authorised to hold negotiations for giving stability support to Greece.


The Board of Governors of the European Stability Mechanism (ESM) will discuss matters related to commencing negotiations at the sitting tomorrow. The aim of the negotiations is to determine in a memorandum of mutual understanding those terms related to financial aid, which Greece needs to comply with to receive stability support.


If the European Union Affairs Committee decides to authorise Estonian representatives in the ESM Board of Governors to support commencing negotiations, it does not yet mean taking financial obligations for the Republic of Estonia. The European Union Affairs Committee can also not authorise the Estonian representative to determine the conditions of the monetary obligations taken for Estonia. To approve the memorandum of mutual understanding prepared as a result of the negotiations, the Estonian representatives need the support of the plenary assembly of the Riigikogu.


The government also decided to support giving Greece a short-term loan of the European financial stability mechanism, which operates on the backing of the budget of the European Union (EFSM), on fulfilling the preconditions.