About the Estonian economy

Session: 15th Riigikogu, 4th sitting, press briefing

Date: 2024-09-25 15:14

Participating Politicians:

Total Speeches: 10

Membership: 15

Agenda Duration: 12m

AI Summaries: 10/10 Speeches (100.0%)

Analysis: Structured Analysis

Politicians Speaking Time

Politicians

Analysis

Summary

Today's second question was directed to Prime Minister Kaja Kallas and concerned the Estonian economy. Member of the Riigikogu Martin Helme posed a question about the prospects for the economy and raised a critical assessment of the government's economic policy, including tax changes and energy policy. The text conveyed concern about a potential economic downturn lasting nine to ten quarters, and the IMF and other international sources were cited as examples of what the current budget and decisions concerning the economy may lead to. The discussion continued with questions about how to ensure sustainable economic growth and the consolidation of the state's finances, and what the transition of energy policy towards green energy entails, as well as its short-term impact on consumers and businesses.

Decisions Made 1
Collective Decision

No decisions were made. The discussion continues and European and international forecasts, as well as the Bank of Estonia's analyses, may guide further discussions at the next information sessions.

Most Active Speaker
Martin Helme
Martin Helme

Eesti Konservatiivse Rahvaerakonna fraktsioon

The most active speaker was Martin Helme (EKRE), who made several critical remarks about economic policy and posed questions about the government's plans. EKRE belongs to the right-wing political spectrum.

Esimees Lauri Hussar
15:14:58
AI Summary

Riigikogu member Martin Helme is posing his second question to Prime Minister Kristen Michal regarding the Estonian economy.

Martin Helme
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioon
15:15:07
AI Summary

Martin Helme claims that the question he asked was not answered. He highlights the economic recession in Estonia, which has now lasted for ten consecutive quarters, noting that it is one of the longest in Europe and one of the deepest globally. He cites criticism from the IMF and the comparison drawn between Estonia and countries such as Sudan, Yemen, Haiti, and Argentina, and asks whether the new tax hikes and the green energy plan will lead us to a situation even worse than those nations.

Peaminister Kristen Michal
15:17:12
AI Summary

Prime Minister Kristen Michal reminds us that the fiscal easing of 2017 exposed risks, and the subsequent crises and inflation underscored the necessity of a counter-cyclical and realistic economic policy. He adds that this is the first step in moving forward.

Esimees Lauri Hussar
15:19:56
AI Summary

The questioner may ask a clarifying question, and Martin Helme is asked to respond.

Martin Helme
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioon
15:20:00
AI Summary

Martin Helme accuses the Reform Party of losing control over state finances, claiming that a massive expenditure was made with the 2021 supplementary budget and that the state budget deficit has been roughly 1.5 billion euros annually over the past few years, necessitating borrowing from the market. He contrasts this by noting that during EKRE’s time in crisis, they utilized the Unemployment Insurance Fund’s reserves instead of taking out loans. Helme finally calls on Reform Party members to look in the mirror, admit they are responsible for the error, and focus on fixing the economy.

Peaminister Kristen Michal
15:21:39
AI Summary

The Prime Minister emphasizes that Estonia must bear responsibility for the concerns arising globally, while simultaneously focusing on clean energy and putting the state's finances in order, arguing that this is the only way the economy can grow and the quality of life can improve, even though some necessary steps may be unpleasant.

Esimees Lauri Hussar
15:24:48
AI Summary

The Chairman thanks the previous speaker and calls upon Aleksandr Tšaplõgin to ask a supplementary question next.

Aleksandr Tšaplõgin
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:24:53
AI Summary

The Bank of Estonia states in its latest economic forecast that the government's proposed decisions will lead to a decline in the standard of living for Estonian citizens in the coming years, as changes to the tax system will increase inflation, raise unemployment, slow economic growth, and reduce real wages.

Peaminister Kristen Michal
15:25:26
AI Summary

Prime Minister Kristen Michal stated that, based on the Bank of Estonia's forecast, restoring order to the nation's finances is essential. This effort will entail public sector cuts and continued growth in defense spending. A contribution is expected from everyone—from bakers and entrepreneurs to bankers—because once order is established, the future will be simpler.

Esimees Lauri Hussar
15:27:34
AI Summary

Speaker Lauri Hussar thanks the Prime Minister and announces that he is concluding the handling of today's second question.