Overview by the Government of the Republic concerning the stability support provided by the European Stability Mechanism and the participation of the Republic of Estonia in the European Stability Mechanism
Session: 15th Riigikogu, 3rd sitting, plenary session
Date: 2024-01-10 16:01
Participating Politicians:
Total Speeches: 21
Membership: 15
Agenda Duration: 22m
AI Summaries: 21/21 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu discussed the Government of the Republic's overview of the stability support provided by the European Stability Mechanism (ESM) and Estonia's participation in this mechanism. Finance Minister Mart Võrklaev provided an overview of the ESM's 11 years of operation, stressing that all euro area countries that required assistance during the financial crisis are now able to finance themselves, and confidence has been restored. The Minister noted that the ESM currently has no active assistance programs, and all loans are in the post-program surveillance phase.
The ESM reform has reached its final stage—all members except Italy have ratified the amendments to the founding treaty. The main amendment assigns the ESM the role of a common backstop for the Banking Union's Single Resolution Fund. The Minister emphasized that the ESM has maintained a high credit rating and possesses 413 billion euros in available lending capacity. The organization has fulfilled its role in stabilizing the euro area and remains prepared to offer assistance in the future should the need arise.
Decisions Made 1
Upon the conclusion of the present debate, the Riigikogu decision was not adopted, as was stipulated by the procedure governing the handling of this agenda item.
Most Active Speaker
The most active speaker was Anti Poolamets, representing the faction of the Conservative People's Party of Estonia (EKRE), who leveled sharp criticism against the ESM, calling it an instrument that is unconstitutional and contrary to European Union law. He adopted a right-wing position, specifically criticizing the Reform Party and the actions of Jürgen Ligi, arguing that Estonia is paying for the laziness of other countries and that the ESM damages Estonia's economic independence. Poolamets employed emotional rhetoric and leveled accusations against the government.
Aseesimees Jüri Ratas
AI Summary
The Riigikogu is debating the stability support granted by the European Stability Mechanism and Estonia's participation, which will be presented by Finance Minister Mart Võrklaev. The presentation will last up to 20 minutes, followed by questions, negotiations among the parliamentary factions, and a general debate, but the Riigikogu will not adopt a decision on a final agreement.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev provided the Riigikogu with a brief overview of the ESM’s 11 years of operation. He recalled the cause of the 2008 financial crisis, noted that there are currently no active assistance programs, and all old loans are in the monitoring phase. He described the expansion of the ESM, resulting from the reform, to include the banking union’s resolution fund, as well as clarifications regarding the terms of loan instruments. Võrklaev emphasized that the ESM has maintained a high credit rating, and its maximum lending capacity stands at 500 billion euros (82%, or 413 billion euros, is in available funds), with 3.2 billion euros accumulated in the reserve. Finally, he stressed that the ESM has ensured the stability of the Eurozone during crises, and its role within the banking union may increase in the future.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas thanked the presenter, said that there was at least one question, and invited Anastassia Kovalenko-Kõlvart to speak.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
He asked the minister why Italy has not yet ratified the amendments to the ESM founding treaty, what their fears and reasons are, whether the document will enter into force solely with Italy's signature, and whether any further amendments are anticipated to secure Italy's approval.
Rahandusminister Mart Võrklaev
AI Summary
Võrklaev stated that Italy is either considering or apprehensive about taking on additional obligations or opportunities related to the ESM, and he has no information indicating that they will proceed with ratification or that any changes would need to be made there.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas invites Urve Tiidus to take the floor.
Urve Tiidus
Profiling Eesti Reformierakonna fraktsioonAI Summary
Urve Tiidus noted that during the handling of the ESM issue in the Riigikogu chamber, there were many fears and risk warnings, but today's figures show that those fears have not materialized. She asked whether assurance could be given for the future that this trend will continue.
Rahandusminister Mart Võrklaev
AI Summary
The ESM helped us through the crises and stabilized the entire financial system. Furthermore, its existence provides assurance for the future that we won't face major unexpected events or costs.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas thanks the Minister, announces the opening of the debate, and invites Anti Poolamets, representative of the EKRE faction, to the Riigikogu rostrum to deliver his speech.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets claims that the ESM and the European Union are usurping Estonia's constitutional rights and economic independence, accuses the Reform Party and judges of seizing power, and cites the Supreme Court's 2012 decision as an example of how treaties are interpreted according to their wishes.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas poses a counter-question: how much?
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
The speech contains only one word: "three."
Aseesimees Jüri Ratas
AI Summary
Vice-Speaker Jüri Ratas requests three minutes of time for himself.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets criticizes the Greek loan programs and the Eurozone economic system, claiming that Estonia is footing the bill for the laziness of others. He highlights Jürgen Liik's 2010 promises and the role of the Reform Party, emphasizing that the money is being channeled to Greece and other countries, rather than being used for Estonians.
Aseesimees Jüri Ratas
AI Summary
This sentence shows that the waiter's time is up.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets notes that the situation is poor, and the European Monetary Union has not fulfilled its objectives.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas thanked the rapporteur and invited Jürgen Ligi, the representative of the Reform Party parliamentary group, to the Riigikogu rostrum to speak.
Jürgen Ligi
AI Summary
Jürgen Ligi asserted that the ESM has been, from the very beginning, an EU IMF-like collective mechanism, the purpose of which is protecting the economy and strengthening cooperation among allies. Furthermore, the money lent to Greece was intended to stabilize the economic environment and prevent a market crash, not to achieve personal gain.
Aseesimees Jüri Ratas
AI Summary
Vice-President Jüri Ratas asks for three minutes of time.
Jürgen Ligi
AI Summary
According to Jürgen Ligi, the loans provided under ESM conditions and Greece’s exemplary reforms have demonstrated how deep fiscal and structural reforms function in preventing crises, and Estonia has significantly benefited from this.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas announced that the negotiations have concluded, and upon the ending of this debate, the Riigikogu will not adopt a decision, thereby concluding the first item on the agenda.