Estonia thinks to sue European Commission

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Photo: Henn Soodla

In mid-May, European Commission halted almost €425,000 worth of European Fisheries Fund (EFF) payments to Estonia. According to agriculture ministry, the decision is unsubstantiated and they propose that government contest it in European Court of Justice. 

The final decision – to sue, or not to sue – will be taken at governmental meeting tomorrow. Foreign minister Urmas Paet says, however, that the issue has been weighed for a long time by those it concerns and the court case is most likely.

The dispute is over interpretation of underlying regulations of EFF.

As explained by Olavi Petron, vice chancellor for foreign relations and fisheries policy at agricultural ministry, a large part of Estonian fishing fleet dates back to Soviet times when not much attention was paid to fuel economy and environmental issues. As supported by EFF, since 2007 the existing fishing vessels have been substantially modernised; as assessed by the ministry, all has been by the rules.

«The commission has later entered specifications into the regulations which, in our opinion, no longer correspond to the spirit of the regulation. The dispute is over what is repairs and what is investments i.e. what costs are eligible for grants while modernising ship engines,» explained Mr Petron.

Before going to courts is approved by the government, agriculture minister would not like to comment any further.

As at end of May, EFF has awarded grants to modernise 34 Estonian trawlers. All in all, close to €112.8m was prescribed as EFF grants during the past budget period, nearly €30m of which came from Estonian state budget.

Foreign ministry, who would be representing Estonia in courts, has deemed the step to be necessary.

«With differences between various European institutions and states, at times the final truth is sought at the European Court – it prior settlement proves elusive. Just like everyday life... no one likes to go to court and it’s not an everyday-thing for anybody. But sometimes, one has to go,» commented foreign minister Mr Paet.

Mr Paet said officials find European Commission decision to be unjust. The latter unwilling to back down, to sue seems the only option.

While Estonia has been repeatedly sued by the European Commission, the opposite has been true just for a time or two over these past ten years. The best known of these is the so-called sugar fine case where European Commission hit Estonia with a fine of €45.7m for excess sugar storage at joining the EU. 

Estonia deemed it unfair for the fine to be imposed for excessive domestic storage as well. Failing to win at court and after time-consuming disputes, the sum was managed to be cut slightly; even so, Estonia had to pay the commission €34.3m for sugar. 

In 2007, Estonia contested European Commission decision to halve our CO2 quotas. As at 2012, twice the court has ruled in Estonia’s favour.

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