Debate on the matter of national importance initiated by the Economic Affairs Committee: "How to increase productivity in the Estonian economy?"
Session: Fifteenth Riigikogu, Third Session, Plenary Session
Date: 2024-05-16 13:01
Total Speeches: 122
Membership: 15
Agenda Duration: 2h 55m
AI Summaries: 122/122 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The parliamentary debate in the Riigikogu focused on a key national issue initiated by the Economic Affairs Committee: "How to increase productivity in the Estonian economy?" The discussion was based on a report being compiled by the Competitiveness Expert Council. Presentations were given by Priit Lomp, a member of the Economic Affairs Committee, Ülo Kaasik, Deputy Governor of the Bank of Estonia, and Jaanus Tamm, CEO of the defense industry company DefSecIntel Solutions. Priit Lomp stressed that the vitality of the economy requires a common contribution that transcends party politics and highlighted five main concerns: the shortage of qualified labor, a low level of digitalization, excessive bureaucracy, the high cost of capital, and the costs associated with the green transition. Ülo Kaasik presented more detailed recommendations, focusing on the better utilization of the workforce, reducing the mismatch between education and work (including considering making higher education partially fee-based), and the need to coordinate renewable energy goals with neighboring countries. Jaanus Tamm offered the perspective of the defense industry, emphasizing agility, the importance of developing proprietary products, and the need to bring highly qualified foreign engineers to Estonia. He also criticized the bureaucracy that slows down the establishment of new factories. During the negotiations, representatives of the parliamentary groups stressed the need for a stable economic environment, the reduction of bureaucracy (Liisa-Ly Pakosta proposed a target of 25% reduction), and reform of the education system to solve the problem of engineer shortages. Urmas Reinsalu (Isamaa) criticized the government's economic policy for creating uncertainty and raising taxes, while Mario Kadastik (Eesti 200) emphasized the role of international research centers (CERN, ESA) in boosting innovation and exports. The debate concluded without adopting a decision.
Decisions Made 1
No decisions were made
Most Active Speaker
Mario Kadastik (Eesti 200 faction) was the most active questioner and speaker, focusing on the role of innovation, education, and international scientific organizations (such as CERN and ESA) in boosting the productivity of the Estonian economy. (misc.)
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar today announces the start of the Economic Affairs Committee's debate on the matter of significant national importance, "How to increase productivity in the Estonian economy?" He introduces the order and schedule of the presentations (Priit Lomp's, Ülo Kaasik's, and Jaanus Tamm's presentations and the accompanying questions), and opens the debate, starting with Priit Lomp's presentation from the Riigikogu rostrum.
Priit Lomp
AI Summary
Priit Lomp emphasizes that raising Estonia's productivity and standard of living requires combining expert input with the role of the Riigikogu, and improving competitiveness through a better business environment, infrastructure, development of a qualified workforce, acceleration of digitalization and the green transition, reduction of bureaucracy, and enhancement of regional balance and funding, all for the sake of taking bold decisions and keeping pace with the global economic climate.
Esimees Lauri Hussar
AI Summary
The Chairman thanked the speaker and called for questions, beginning with Mario Kadastik.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kadastik stressed that Estonia needs to implement structural changes in its economy, shifting resources away from cheap labor toward a skilled workforce and high value-added exports. He believes that by establishing large research and development centers and utilizing traineeships, intellectual property can be repatriated and export capability enhanced.
Priit Lomp
AI Summary
Priit Lomp confirmed his agreement and noted that while examples of international cooperation were highlighted, the biggest opportunity for young people and the education system is to focus on adding greater value to local resources and recycling waste. Furthermore, he stated that he does not dispute differences in perspective, but rather agrees.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Reili Rand to speak.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Reili Rand thanked the rapporteur and the Speaker of the Riigikogu, emphasized the important topic and the forthcoming final and short reports, and asked what, in his estimation, the first step the legislative body should take to improve Estonia's competitiveness would be.
Priit Lomp
AI Summary
Priit Lomp stated that we must take both immediate steps and those necessary in the medium term, while considering all crucial sectors, as it wouldn't be entirely fair to highlight just one. Reducing bureaucracy is fiscally positive, and going forward, we must focus attention on energy and education.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar addresses his colleague Jaak Aab and asks him for something.
AI Summary
He emphasized that the topic of regional economy and entrepreneurship needs closer examination, as funding is not unlimited. He also asked how the current measures are performing, whether structural fund resources could be utilized, how local municipalities could be stimulated, and who should be involved in discussing these issues further.
Priit Lomp
AI Summary
Priit Lomp stated that, based on the initial analysis conducted by University of Tartu scientists, regional policy is a topic close to his heart. Furthermore, partner institutions—the Foresight Centre, the Bank of Estonia, Tallinn University of Technology, and the University of Tartu—began paying significantly more attention to this subject, noting that regional policy also surfaced in discussions regarding energy, reducing bureaucracy, and speeding up planning processes, particularly when looking at local government examples. This exchange of ideas subsequently encouraged them to share substantive insights in their ongoing research.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar calls upon Anti Allast.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He asks whether the entire discussion also covered whether Estonia's current economic and tax policies have recently curtailed our competitiveness or negatively impacted it, and whether such an analysis was conducted or not.
Priit Lomp
AI Summary
Priit Lomp thanked the questioner and stated that the objective was to raise the perspective and analysis above standard party politics. He consciously chose not to be involved in the process daily to prevent accusations from competitors. Ülo will explain the final status of the issue during the next presentation.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Kersti Sarapuu to speak.
Kersti Sarapuu
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kersti Sarapuu pointed out that the topic of utilizing mineral resources has once again risen to the agenda and asked whether the Economic Affairs Committee and expert groups have discussed the possibilities for their future use.
Priit Lomp
AI Summary
Priit Lomp stated that the Riigikogu Economic Affairs Committee has not dealt extensively with the issue of geological resources recently, and has tried to base its discussions on facts and studies. He emphasized that local resources must be processed more effectively (or "more value must be added to local resources") and the export of unprocessed goods must be avoided, while also considering whether there are new resources whose valorization should be explored.
Esimees Lauri Hussar
AI Summary
The Chairman called Madis Kallas to speak.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas asked whether the Economic Affairs Committee had raised the regional issue as a matter of national importance, and whether they focused on using the good practices of both nearby and distant regions to provide additional regional support for entrepreneurship, noting that this was a crucial topic throughout the entire report.
Priit Lomp
AI Summary
This project gave University of Tartu researchers complete autonomy to study the state's recent addresses and regional policy issues, primarily because the government often fails to provide answers. Although the topic has not received much attention in research institutions, it is hoped that experts from UT or Tallinn University of Technology will guide younger colleagues to conduct further research and present their findings.
Esimees Lauri Hussar
AI Summary
The Chairman calls Marek Reinaas to the podium.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Marek Reinaas asks whether the topic of competitiveness, discussed in the Economic Affairs Committee, aligns with the vision of the long-term economic plan submitted to the government, which aims for the Estonian economy to double by 2035, and how this goal will be evaluated.
Priit Lomp
AI Summary
Priit Lomp thanked the questioner and stated that following their initiative, economic plans have been pouring in like crazy, and their working group's report aims to ensure that decisions—whether they are the economic plan of the Ministry of Economic Affairs and Communications or recommendations from employers—are based on scientific calculations and substantive material, so that they do not become mere slogans. While he does not wish to be critical of Tiit Riisalo's economic plan, he notes that the material, which will be finalized in June, is over 130 pages long and has been laid on the table, providing decision-makers with a strong foundation.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the presenter, states that there are no further questions, and invites Ülo Kaasik, a member of the Competitiveness Expert Council and Deputy Governor of the Bank of Estonia, to the Riigikogu rostrum for a presentation lasting up to 30 minutes.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
The report presented to the Riigikogu Competitiveness Expert Council emphasizes that Estonia's long-term economic growth hinges on boosting productivity, which necessitates promoting digitalization and automation, enhancing skills development and engineer training, resolving labor mismatches and integrating foreign labor, carefully planning the costs and benefits of the green transition, reducing bureaucracy, and improving financing and the motivation of local governments. These measures are crucial for creating a more favorable environment for entrepreneurship and increasing the standard of living.
Esimees Lauri Hussar
AI Summary
The speaker addresses the esteemed presenter and asks if he/she needs extra time.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
He indicates that his speech would last over one minute.
Esimees Lauri Hussar
AI Summary
The Chairman is immediately granting three minutes so that we can stay neatly within the framework.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
Our recommendation involves reviewing the terms of state guarantees and, where necessary, making them more favorable; increasing the accessibility of non-banking financing options; considering liquidity guarantees for pension funds; and improving preparedness for external shocks, while simultaneously enhancing the allocation and implementation of European Union funds and ensuring the stability of fiscal policy, all aimed at securing steady and predictable economic growth.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the speaker for the comprehensive presentation, noted that there were many questions for the presenter, and first called upon Urve Tiidus.
Urve Tiidus
Profiling Eesti Reformierakonna fraktsioonAI Summary
Urve Tiidus noted that few engineers are being trained in Estonia and presented completely different solutions, such as establishing a fund that would provide engineering students with scholarships and the opportunity to study at MIT. She also asked whether we need to start as early as the first grade to direct young people toward technical and technology specialties.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
Kaasik stressed that while many of the recommendations weren't novel, it is essential to consistently maintain a focus on economic growth and bring analytical units together to the same table. Furthermore, we must pay greater attention to the teaching of mathematics and natural sciences, given that population decline will only make the problem progressively more complex over time, and the first tangible results are not expected for another ten years.
Esimees Lauri Hussar
AI Summary
The Chairman invited Kersti Sarapuu to speak.
Kersti Sarapuu
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kersti Sarapuu emphasizes that companies should invest in innovation and digitalization, but financing is extremely burdensome for small and medium-sized enterprises (SMEs). In rural areas, collateral is low, loan interest rates are around 5%, guarantee fees are 2%+, and the high Euribor creates additional costs exceeding 10%. Therefore, she is calling for specific solutions and measures.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
Our recommendation is straightforward: simplify the terms and conditions for the guarantees offered by the Foundation for Entrepreneurship and Innovation and make better use of the state-allocated funds. This is necessary because companies frequently lack sufficient collateral, which creates significant hurdles.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Kristina Šmigun-Vähi to the stage.
Kristina Šmigun-Vähi
Profiling Eesti Reformierakonna fraktsioonAI Summary
Kristina Šmigun-Vähi stressed that the economy relies on finite resources and requires making choices. She then inquired about the main themes of the experts' discussions and which sector Estonia should prioritize investing in the most.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
Ülo Kaasik stressed that although various analyses generated a diverse, and sometimes contradictory, palette of recommendations, all of them are relevant. We must focus on both short-term and long-term impacts, ensure that decisions are data-driven, and streamline processes for entrepreneurs so that investments and production do not get bogged down in long-term bureaucracy.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar calls upon Tanel Kiik.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik asks about the reasons for the low level of digitalization in the Estonian private sector and what the government could do to boost the private sector's digitalization through regulation or innovation support.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
Since the Estonian economy is mainly made up of small and medium-sized enterprises (SMEs)—for which the costs of achieving economies of scale and digitalization are higher, and where changes in the external environment add significant pressure—state support should take a holistic view of the company. It needs to develop the ambition and the skills required for implementation, rather than simply limiting itself to deploying a single piece of software.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar calls upon Andre Hanimägi.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Andre Hanimägi emphasized that infrastructure is central to the economy and competitiveness, and he asked what Estonia's primary investment should be—whether it's Rail Baltic, or if we must simply accept that our geographical location always makes the infrastructure question complicated.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
Ülo Kaasik stressed that Estonia, as a small and sparsely populated country, needs to invest significantly more in infrastructure per capita. However, due to the current financial situation, recommendations involving additional costs were withheld, and such an analysis should be conducted in the long term in the future.
Priit Lomp
AI Summary
Priit Lomp thanked everyone, confirmed his honest confession about botching the second pension pillar, and noted that this resulted in a significant decrease in non-bank financing, which has hampered the economy’s faster recovery. He added that the proposed liquidity guarantee seems reasonable, but posed two questions: how large must the critical volume be for it to actually help the pension funds, and what level of risk is anticipated when realizing the guarantee.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Priit Lomp to the stage.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
Ülo Kaasik noted that risks do exist, but the guarantee fund secures pension payments, and the risk is liquidity rather than credit risk. The initial volumes amount to hundreds of millions of euros, and it should be discussed with representatives of the pension funds whether this would be beneficial and what volumes are appropriate.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar addresses Maris Lauri and makes a request.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
It is said that the consolidated material facilitates discussions and the finding of solutions, and a question is raised regarding the funding of research and development (R&D) within the framework of the 1+2 agreement: the state’s 1% of GDP has been fulfilled for several years now, but companies have recently been below 1%. The question is whether it is possible to use the same mechanisms to help businesses reach the 2% target.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
Ülo Kaasik stated that Estonia should make greater use of tax incentives when sharing research and development risks with the private sector, as this approach can offer advantages over direct subsidies and can be integrated into business plans and financing, something the state should better facilitate.
Esimees Lauri Hussar
AI Summary
The Chairman invites Pipi-Liis Siemann to the stage.
Pipi-Liis Siemann
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speaker highlighted the mismatch between education and the labor force and debated whether the cooperation between training institutions and employers should be fundamentally restructured so that small and micro-enterprises could boost innovation, emphasizing the strong preparedness of vocational education and the lack of initiative among employers.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
Ülo Kaasik stressed that ambition needs to be intrinsic, and that collaboration between businesses and educational institutions must be fostered more actively and purposefully, especially since vocational training skills don't always align with the demands of the job market.
Esimees Lauri Hussar
AI Summary
The Chairman invited Luisa Rõivas to speak.
Luisa Rõivas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Luisa Rõivas is asking what the fiscal balance target should be for the coming years and how quickly the deficit needs to be reduced, pointing to the negative balance that has been deepening since 2017 and the growing national debt.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
Ülo Kaasik noted that Estonia’s public finances are in bad shape, and for the future, the country needs budget rules agreed upon by consensus, coupled with deficit reduction. This would reduce uncertainty among both entrepreneurs and the general public. He added that while the government's latest steps seem reasonable, their success hinges entirely on whether they can actually be implemented.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar called upon Anti Allast.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speaker is asking whether the country's tax policy has been analyzed as a key factor influencing the economy and competitiveness, how it has negatively impacted things up to this point, and what changes could be made to improve that competitiveness.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
Overall, the Competitiveness Expert Panel concluded that the Estonian tax system performs very well in international comparisons. The low number of exceptions keeps the system simple and transparent, and the issue of corporate income tax should be addressed more thoroughly in the future, as it may impede capital movement.
Irja Lutsar
Profiling Eesti 200 fraktsioonAI Summary
Irja Lutsar highlighted the widespread labor shortage, noting that 60% of the employed population should theoretically cover the entire labor demand. She then posed the question of whether the issue stems from an overextension of capacity or from a deficit-surplus imbalance between different sectors, and what kind of work these individuals are actually performing.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Irja Lutsar to speak.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
Ülo Kaasik stressed that the main problem is not simply a labor shortage, but rather the scarcity of highly skilled labor, which must be addressed in the long term in order for economic productivity to increase.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets notes that since 2017, Latvia and several other countries have surpassed us in productivity, and in his estimation, the situation will not be improved by the influx of cheap labor, the non-Estonian-speaking Central Asian Bolt taxi drivers, or Wolt food couriers; rather, the real solution lies in the presence of technology and engineers.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar addresses Anti Poolamets and asks him.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
Our analysis indicates a recent decline in productivity. Furthermore, the proportion of war refugees from Ukraine in the workforce has increased. Regarding migrants from third countries, their influx should supplement the existing workforce, rather than replacing it, because while replacement migration might lead to cheaper services, it fails to improve productivity and could potentially create other costly societal problems.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mario Kadastik comments on the comparison of two slides concerning the competitiveness of the Estonian economy. While the evaluations in some sectors align with those of international assessors, overall pessimism is deepening. He questions whether this trend might impede activity, stressing that he does not agree with the assertion that everything is worse based on international ratings.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Mario Kadastik to take the floor.
Konkurentsivõime ekspertkogu liige Ülo Kaasik
AI Summary
This address highlights that assessing competitiveness requires taking into account both the state of the economic cycle when the survey is conducted and repeating the survey during prosperous times. Furthermore, although Estonian companies often give poor ratings to public administration capacity, international comparisons reveal that other countries have even worse ratings, which raises the question of how exactly these ratings should be compared and weighed.
Esimees Lauri Hussar
AI Summary
The proceedings begin with thanks extended to Luisa Rõivas, and the rules are set: one question may be posed to each presenter, and a new questioning opportunity arises with the next speaker, but there will be no opportunity to ask a second question regarding this specific presentation; following this, Jaanus Tamm, the founder and CEO of DefSecIntel Solutions, is invited to the Riigikogu podium for his presentation, which will last up to 20 minutes.
Kaitsetööstusettevõtte DefSecIntel Solutions asutaja ja tegevjuht Jaanus Tamm
AI Summary
Jaanus Tamm stated that the Estonian defense industry must be export-oriented, fast, and agile, focusing on higher value-added products (such as drones, surveillance systems, and platforms) through integrated hardware and software development. This requires involving highly qualified engineers and digitalizing processes to strengthen the competitiveness of the Estonian economy and accelerate production.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks the presenter, notes that there are quite a lot of questions, and proceeds to open the floor for them, starting with Andre Hanimägi. Please.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
According to the report, the defense industry support group is gathering feedback on legislative and regulatory restrictions—such as the rules for testing drones—and the question is raised whether these concerns have been presented to the Economic Affairs Committee and whether they are being addressed, or if additional pressure is required.
Kaitsetööstusettevõtte DefSecIntel Solutions asutaja ja tegevjuht Jaanus Tamm
AI Summary
Jaanus Tamm said that DefSecIntel has a good dialogue with the Ministry of Defense and the Ministry of the Interior, and their proposals and ideas are heard out, but things cannot always be sped up. At the same time, the importance of the proposals was emphasized, and they discussed simplifying the testing of drones and potential amendments to the Arms Act so that they would not immediately qualify as missiles, because the state must regulate these matters.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Priit Lomp to the stage.
Priit Lomp
AI Summary
Priit Lomp thanked the Chairman of the Riigikogu and the rapporteur, and highlighted that the priorities for Estonia's investment sectors are green energy and the valorization of biomass, the valorization of oil shale ash, the defense industry, future food, and biochemistry, although the list is not exhaustive. He then asked how to increase foreign investors' confidence in investing and ensure their continued investment in Estonia.
Kaitsetööstusettevõtte DefSecIntel Solutions asutaja ja tegevjuht Jaanus Tamm
AI Summary
Jaanus Tamm emphasizes the importance of tax certainty for long-term investments, and the necessity of demonstrating defense capabilities clearly through both strong rhetoric and concrete actions, so that investors gain confidence and choose to invest here.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar turns to Pipi-Liis Siemann and asks her to come.
Pipi-Liis Siemann
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Pipi-Liis Siemann thanked the presenter, noting that the presentation was positive and ambitious, but asked why production is carried out in foreign countries due to faster procedures, and whether legislative changes could speed up investments in Estonia.
Kaitsetööstusettevõtte DefSecIntel Solutions asutaja ja tegevjuht Jaanus Tamm
AI Summary
DefSecIntel Solutions manufactures all its products in Estonia and operates factories and a maintenance hub in Ukraine, close to the client. However, some operations are easier to conduct abroad due to the weapons law. If the law changes, we will carry those out in Estonia. Development can be based in Estonia, and sometimes we need to invest from outside Estonia, establishing a small hub, for example, in Ukraine, Poland, or Romania.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar makes a request to Madis Kallas.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas pointed out that the feedback from entrepreneurs in foreign countries has been that doors open and high-level meetings are secured, and that the same speed and assistance should be available in Estonia when communicating with state institutions and local governments. He then asks whether this speed is limited by legislation, the decisions of the assembly, or if it is simply not being done enough.
Kaitsetööstusettevõtte DefSecIntel Solutions asutaja ja tegevjuht Jaanus Tamm
AI Summary
Jaanus Tamm said that in a rapidly changing world, there is no time to wait years, and we must be agile both as a company and as a state. We need to find ways, in cooperation with the Ministry of Defence and officials, to act and achieve results as necessary, because the situation has changed, and investment planning must now occur over shorter timeframes.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Peeter Tali to come and speak.
Peeter Tali
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Tali emphasizes that Estonia has a space and defense industry association, not a war industry association. He then asks whether Estonia could produce the shells itself and where the money would come from to purchase them, noting that the Commander of the Defense Forces wants to buy shells immediately for 1.6 billion euros. Tali also points out that a large portion of taxpayer money is currently flowing abroad (to France, Spain, Germany, etc.).
Kaitsetööstusettevõtte DefSecIntel Solutions asutaja ja tegevjuht Jaanus Tamm
AI Summary
Jaanus Tamm believes that Estonia has the potential to produce smarter munitions, and this could develop the defense industry, but it will take time and require planning. Furthermore, funding should come from larger sources, such as European Union defense funds and bonds, because Europe's needs are in the hundreds of billions, and 1.6 billion is not sufficient for Estonia.
Aseesimees Jüri Ratas
AI Summary
Deputy Chairman Ratas invites Jaak Aab to take the floor.
AI Summary
The address emphasizes that, concerning the business environment and investments, it is crucial to determine whether raising taxes intended to finance national defense will attract investors to Estonia or drive them away. This point is made by referencing the 4% club established in Lithuania, and an assessment is requested.
Kaitsetööstusettevõtte DefSecIntel Solutions asutaja ja tegevjuht Jaanus Tamm
AI Summary
He stressed that the sustainability of the state relies on taxes, and as an entrepreneur, one must consciously know how large a payment needs to be made. Furthermore, if society decides on 4–5 percent, one must commit to achieving that goal.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Maris Lauri to take the floor.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
Maris Lauri thanked the presenter and noted that the success Estonia previously saw in the IT sector is reflected in agility and a smart product. She then asked what advice they would give to Estonian entrepreneurs who are searching for their niche or are struggling due to external factors, regarding where they can find agility and a smart product.
Kaitsetööstusettevõtte DefSecIntel Solutions asutaja ja tegevjuht Jaanus Tamm
AI Summary
Jaanus Tamm stresses that success begins with understanding customer needs and having direct contact with the client. This is followed by developing an MVP to satisfy those unmet needs, taking risks, and involving young engineers. Furthermore, in the beginning, you have to sacrifice several things until the product becomes successful, and sometimes, being "good enough" is all that is required.
Aseesimees Jüri Ratas
AI Summary
Vice-Chairman Jüri Ratas invited Liisa-Ly Pakosta to the stage and asked her to deliver a speech.
Liisa-Ly Pakosta
AI Summary
Liisa-Ly Pakosta thanked the presenter for the report, stating that there should be less restriction. She requested more specific details regarding the impact of the criticism directed at the European Union, as well as concrete courses of action for Estonia. She also pointed out that the European Defence Fund has supported at least 15 Estonian companies, including Milrem, Cybernetica, DefSecIntel, and Baltic Workboats, and then inquired about what projects remain unfunded and how they could proceed more effectively.
Kaitsetööstusettevõtte DefSecIntel Solutions asutaja ja tegevjuht Jaanus Tamm
AI Summary
Jaanus Tamm said that the European Defence Fund is not merely an investment fund, but a pot of money for development grants, which has brought millions of euros to the Estonian defense industry and whose formation has been aided by the cooperation of state institutions. However, equity investments were previously restricted by the decisions of the European Investment Bank—now the situation has changed, and the fund offers the industry new opportunities for research and development.
Aseesimees Jüri Ratas
AI Summary
Vice-Chairman Jüri Ratas invites Mario Kadastik to the stage.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kadastik stressed that foreign investments are necessary to realistically boost Estonia’s capacity and well-being, and for export success, one of the primary drivers is a proven track record demonstrating that we have been able to offer quality products, although this is more challenging in the defense industry due to classification.
Kaitsetööstusettevõtte DefSecIntel Solutions asutaja ja tegevjuht Jaanus Tamm
AI Summary
Jaanus Tamm pointed out that for the Estonian defense industry, a product must be tested domestically (for instance, during the Kevadtorm exercise) before it can be widely adopted, because without proven domestic success, it is challenging to capture global markets. To speed up this process, close cooperation must be established with the Ministry of Defense and the Ministry of the Interior, and development support funds must be utilized.
Kalev Stoicescu
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalev Stoicescu asks how to assess the state of the European defense industry and the readiness of the major powers—Germany, France, and Italy—to invest and take bold steps to strengthen deterrence, because this is a key factor for European defense capability and the development of our defense industry, and although the development is impressive and dynamic, it depends on the development of the partners.
Aseesimees Jüri Ratas
AI Summary
Vice-Chairman Jüri Ratas calls Kalev Stoicescu to the stage.
Kaitsetööstusettevõtte DefSecIntel Solutions asutaja ja tegevjuht Jaanus Tamm
AI Summary
European countries are increasing defense investments, and industry is ready to invest, but we still have a long way to go to fully adapt to this. Only cooperation with neighboring countries and leveraging our own agility will bring the necessary investments and actually allow us to establish new factories.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas invited Leo Kunnas onto the stage.
Leo Kunnas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Leo Kunnas asked what the first steps would be to start large-scale explosive production (such as trotyl/TNT), considering the increasing demand and the fact that this kind of manufacturing is, for example, in Poland.
Kaitsetööstusettevõtte DefSecIntel Solutions asutaja ja tegevjuht Jaanus Tamm
AI Summary
Jaanus Tamm said that the easiest way to move a business idea forward is to find a client, create a business plan, share ideas and collaborate, discuss the matter with the defense industry association if necessary, and recommend someone regarding investments.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas opened the discussions and invited Maris Lauri, the representative of the Reform Party faction, to give an eight-minute speech.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
Maris Lauri emphasizes that the state must create a functioning environment for entrepreneurs, ensuring fair competition, supported by a clear and effective legal framework and rapid permit processing. Furthermore, the state must offer financial support for research and development, and by putting public finances in order, reduce uncertainty and boost investment, thereby enabling Estonian businesses to create their own success.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas invited Jaak Aab, the representative of the Social Democratic Party faction, to the Riigikogu podium to deliver a speech, presenting the necessary authorization, which was duly confirmed by Priit Lomp's signature.
AI Summary
Jaak Aab stated that the long-term competitiveness of the Estonian economy is crucial for raising the standard of living and boosting prosperity. To ensure this, the state, the government, and the Riigikogu must work with businesses to identify the necessary steps, as a comprehensive expert assessment indicated that the previous advantages—based on cheap labor, inexpensive energy, and favorable raw materials from Russia and Belarus—have been depleted.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas welcomed Markéta Pekarová Adamová, the Speaker of the Chamber of Deputies of the Parliament of the Czech Republic, who was present on the chamber balcony, and extended a welcome to Estonia, after which the rapporteur was able to proceed.
AI Summary
Jaak Aab said that in recent years, the economic environment has been affected by several unfavorable events, such as Russia's aggression in Ukraine and the resulting geopolitical polarization, as well as the energy disruption. These factors have increased state intervention and protectionism and affected Estonia's competitiveness. Furthermore, since demand has fallen and companies are unable to invest, productivity has declined, even though the state has decided to contribute 1% to research and development, the private sector is unable to follow suit.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas confirms his readiness and offers assistance, saying, "Of course," and "Please."
AI Summary
Jaak Aab emphasizes that the private sector should reach 2% in research, development, and innovation-related investments, and the state must reduce bureaucracy and facilitate data interoperability, involving entrepreneurs, scientists, and trade unions, focusing on alleviating the shortage of qualified labor through vocational education reform and promoting automation and digitalization, and the Social Democratic Party faction promises to actively participate in this process within the Riigikogu committees.
Aseesimees Jüri Ratas
AI Summary
The Deputy Speaker invited Liisa-Ly Pakosta, the representative of the Eesti 200 faction, to the rostrum, and she immediately requested an additional eight minutes of time.
Liisa-Ly Pakosta
AI Summary
Liisa-Ly Pakosta stressed that increasing Estonian productivity requires, firstly, reducing bureaucracy and the burden of state inspections, and making reporting data-driven. Secondly, it requires solving the labor shortage through gender equality, reforming technology education in basic schools, implementing flexible working conditions, leveraging artificial intelligence more effectively, and strengthening competition via competition laws.
Aseesimees Jüri Ratas
AI Summary
Riigikogu Deputy Speaker Jüri Ratas thanks Urmas Reinsalu, the representative of the Isamaa faction, and invites him to the rostrum, where he requests additional time—eight minutes.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
For Urmas Reinsalu, the key factors for improving Estonia's competitiveness involve listening to the voice of entrepreneurs, putting an end to bureaucracy and tax increases, ensuring a competitive electricity price through a comprehensive energy policy, stepping away from the planned economy approach to the green transition, and effectively utilizing EU structural funds.
Aseesimees Jüri Ratas
AI Summary
He thanks [them] and poses a procedural question to Priit Lomp.
Priit Lomp
AI Summary
Priit Lomp asks whether the session chairman will share today’s session materials or the link to them with Urmas Reinsalu, noting that the previous speaker selectively presented only observations convenient for him and neglected to mention the dismantling of the second pension pillar and the reduction of its financing options, despite the fact that solutions were also offered.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas announced that the session materials are publicly available online and invited Mario Kadastik to the Riigikogu podium.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Due to global developments, the economy has undergone drastic changes, including the loss of cheap labor. Consequently, we must focus on high-tech, value-added exports, incentivize educational choices, and create highly attractive and interesting jobs that would draw engineers and other smart people here.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas requests eight minutes.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
To permanently ensure success in Estonian engineering and export, it is essential to utilize international centers such as ESA and CERN. These centers provide knowledge and, through the safeguarding of intellectual property, offer a strong reference, opening up European markets and increasing productivity. This process will be aided by the ratification of full CERN membership and the deepening of cooperation with ESA.
Aseesimees Jüri Ratas
AI Summary
Vice-Chairman Jüri Ratas thanked the Economic Affairs Committee and all participants, especially Priit Lomp, Ülo Kaasik, and Jaanus Tamm, and announced that the debate on the important national issue was concluding, that no vote would take place, that the first item on the agenda had been addressed, and that the sitting was adjourned.