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We consider the local existence and uniqueness of solutions for a system consisting of an inviscid fluid with a free boundary, modeled by the Euler equations, in a domain enclosed by an elastic boundary, which evolves according to the wave equation. We derive a priori estimates for the local existence of solutions and also conclude the uniqueness. Both, existence and uniqueness are obtained under the assumption that the Euler data belongs to $$H^{r}$$ H r , where $$r>2.5$$ r > 2.5 , which is known to be the borderline exponent for the Euler equations. Unlike the setting of the Euler equations with vacuum, the membrane is shown to stabilize the system in the sense that the Rayleigh–Taylor condition does not need to be assumed.