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The aim of the reform is to increase municipalities' capabilities to offer quality public services, spokespeople for the Riigikogu said.

The bill is the first stage of carrying out the administrative reform. The framework law would determine the minimum size of a municipality, including exceptions, as well as the rules and regulations for changing the administrative-territorial organization.

The second stage of the reform includes law amendments regarding municipalities' tasks and funding.

According to the bill the minimum size of a municipality would be 5,000 residents and the government's goal is to reach municipalities with at least 11,000 residents.

Municipalities that merge voluntarily are to get bigger merger support. If the new municipal entity has more than 5,000 residents, all mergers will get double merger support or 100 euros per resident.

The government on Monday decided to raise the support being paid for the formation of a municipality with more than 11,000 residents to 500,000 euros. If a whole county merges, it will be advantageous in the future when applying for national investments.