Ligi: the EU’s crisis management measures are efficient

Ligi: the EU?s crisis management measures are efficient
25. 11. 2010

The Minister of Finance Jürgen Ligi assured at the euro-related briefing today on 23 November that effective measures have been developed by now in order to relieve the situation of the euro zone states in difficulties and to support the economic reforms. Thereby, these measures will significantly contribute to keeping stability in euro zone and in the European Union as a whole. Estonia participates in the euro zone in providing surety for the support packages.

“This does not mean that money will start moving out from Estonia right away next year. As to loan packages, the issue is about securing or providing surety for the state’s loans and the actual money comes, as a rule, from financial markets,” said Ligi. “Other member states will be obliged to allocate resources only if the state who has taken the loan will not be able to pay its debts. But this is highly unlikely as the terms for getting the support are fixed together with the euro zone, IMF and European Commission.”

“The possible amount of our participation in Ireland’s support package would probably be less than two billion Estonian kroons but I repeat that it would not be the amount of money but the amount of guarantee,” said Ligi. Estonia’s participation in providing surety for Ireland’s loan package will be agreed next year during the negotiations held for joining the European Financial Stability Facility (EFSF).

Managing Director of Estonian Banking Association Katrin Talihärm talked at the briefing about the functioning of the bank services during the turn of the year and said that for bank clients the new currency will come automatically as the banks will perform all the operations necessary for changeover to euro for the clients.

“In order to have as smooth changeover as possible, the majority of the banks’ employees will be at work during the turn of the year. Changeover to euro will have short-term impact on bank service operations during the turn of the year as the adoption of euro will inevitably bring along interruptions and disturbances of different duration. The interruptions will be shorter than expected so far and everybody gets further information from their home bank. On the first working day in new year, i.e. on 3 January the banks will continue their work in usual way,” Talihärm explained.

Head of Research at Faktum&Ariko, Kalev Petti gave an overview of the last public opinion poll and said that in November the residents’ support to euro adoption increased by five percentage points to 54%. Whereas, support increased the most among women and the age group of 60-74. People are very well informed of the terms and conditions of the changeover to euro, the percentage is close to 90.

The briefing’s presentations are available here.


Rainer Laurits
Ministry of Finance
Public Relations Department
Tel: 611 3035
Mobile: 55 610 991