ECONFIN's decision Tuesday gave Estonian Minister of Finance Jürgen Ligi something to smile about. Photo used courtesy of NATO.

TALLINN — Estonia’s long-term goal of eurozone entry received the support of ECOFIN, the European Union finance and economy ministers, at a meeting in Brussels on Tuesday.

ECOFIN’s recommendations will then be discussed at the meeting of the European Council on 18 June. In June consultations with the European Parliament will also take place. The final decision to invite Estonia to join the eurozone will be made on ECOFIN on July 13.

The finance ministers support Estonia’s access to the shaking euro area in the light of the positive reports by the European Central Bank and European Commission. The European Commission indicated in its 2010 Converge Report that the smallest Baltic state is the only country out of nine European Union member states, including Latvia and Lithuania, seeking eurozone that meets the Maastricht criteria.

Eurozone accession has been a long-term goal for Estonian government and is reflected in the 2010 national budget. The government implemented many unpopular cuts and tax hikes to keep the deficit level below the limit imposed by the Maastricht criteria. Estonia’s deficit of -1.7 percent of gross national product is the third-lowest on in the European Union, and its 7.2 percent ratio of government debt to GDP was the lowest in the 27 member state bloc.

Jürgen Ligi, Estonia’s finance minister said the transition to the euro is natural consequence of the country’s current policies and that Estonia will continue its long-term economic and fiscal policies, a note of reassurance to Brussels officials considered that the country’s currently sound finances are unsustainable.

“We acknowledge that ensuring the strength of the eurozone is common responsibility of all eurozone countries,” Ligi told the media, “Today’s decision to expand shows that the eurozone is vital.”

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