Estonia structural funding blocked

  • 2011-10-26
  • TBT Staff

The EU froze funding for Estonia until the country can improve its oversight mechanisms.

TALLINN -- The European Commission has blocked structural funding to Estonia following a poor performance by the country's finance ministry during a recent audit.

National news agency ERR reported that the EC would only renew Estonia's access to structural funds following an improvement in oversight of the way funds are handled. The freeze could remain in place for months.

The finance ministry, meanwhile, said it was already working to improve the situation.

“We will be putting more emphasis into the evaluation of risks and supervision of risky fields. We have already presented the commission with proposals on how to improve management. Payments to Estonia will be revived in the coming few months," said Deputy Undersecretary Ivar Sikk in a statement.

Estonia is due to receive some 3.4 billion euros in EU structural funds over the 2007-2013 period.