Estonia, EU – Baltic States, Financial Services, Funds, Legislation

The Estonian economy has grown faster than estimated and according to the partnership agreement, the volume of money allocated to Estonia during the period 2014-2020 will be reduced by 1% or 35.4 million euros. According to a decision made in 2016, this money will be directed to regions that are more in need.

Based on prior information, the sum total of funding allocated to Estonia from the EU funds in the framework of the partnership agreement is approximately 4.42 billion euros.

The European Commission periodically reviews the distribution of EU structural assets or so-called EU money between countries. The aim of the periodic review is the as purposeful of an allocation of EU money as possible, in order to help those countries more in need catch up with wealthier countries.

The European Commission in June 2014 approved partnership agreements with Estonia, Latvia and Lithuania, which stipulate the strategy for the optimum use of European structural and investment funds in order to support the regions and people of those countries.

The EU regulation, which regulates the whole 2014-2020 period of the European Union, stipulates that the Commission in 2016 reviews the 2012 forecasts of the member states' GDP, GNP and employment indicators and actual levels of the indicators in 2013-2015. If a member state has done better in terms of those indicators, the volume of money to be received by the member state from structural assets -- the European Social Fund, European Regional Development Fund and Cohesion Fund -- will be reduced.

During the preset budget period Estonia is to receive 4.5 billion euros more from the EU than it pays to the EU budget. Estonia contributes around 1.4 billion euros to the EU.