Analytics, Budget, Covid-19, Estonia, EU – Baltic States, Financial Services, Funds, Investments

Ratas said that due to the health crisis, member states are faced with economic and social issues, the solving of which the future long-term budget of the EU and the European Recovery Fund must support. 

"The new budget must ensure investments in the four fundamental freedoms of the European Union, help strengthen the single market, create interconnections and ensure resilience and  crisis resilience. It must also support the member states in achieving climate goals," the prime minister said according to spokespeople for the government. 

Ratas and Hahn also talked about the financing of cross-border infrastructure projects in transport, energy and digital interconnections from the future long-term budget.

"Investments in these projects contribute to the functioning of the single market, which is very important for reinvigorating the economy, creating demand for European industry and creating new jobs," Ratas said, naming Rail Baltic and the synchronization of the electricity networks of the Baltic states with those of Central Europe as examples.

The Estonian head of government added that loans are not enough for reinvigorating the economy and intensification of investments, especially when it comes to cross-border projects.

"We also need support to motivate and encourage these projects," Ratas said.

The European Commission is due to present its proposals concerning the EU's long-term budget and the European Recovery Fund later this month.