Discussion of the Crucial National Issue 'The Future of the Estonian Economy'

Politicians Speaking Time

Politicians

Analysis

Summary

The Riigikogu debate focused on the nationally important issue "The Future of the Estonian Economy," initiated by the Reform Party faction. Presentations were given by Maris Lauri (Reform Party), Minister of Economic Affairs and Industry Erkki Keldo, President of the Estonian Founders' Society Allan Martinson, and Liina Vahtras, a member of the Management Board of the Entrepreneurship and Innovation Foundation. Maris Lauri addressed the competitive advantages of the Estonian economy through four pillars: natural resources, labor, capital, and knowledge, emphasizing the importance of continuous innovation and convergence. Minister Keldo presented an optimistic vision, promising Estonia would become one of Europe's fastest-growing economies, highlighting security (5% of GDP defense spending), export growth, and the development of a knowledge-intensive economy. Allan Martinson provided an overview of the strength of the startup sector (contributing 4.5% to GDP), noting that the extensive growth model is running out, and the future depends on the application of artificial intelligence and defense industry niches. Liina Vahtras highlighted the success of the e-residency program (370 million euros in revenue) and introduced plans for the rapid implementation of a cardless digital solution to increase Estonia's competitiveness. During the discussions, coalition members (Pillak, Reinaas) praised the government's steps regarding tax burden reduction and investments, while the opposition (Aab, Reinsalu) sharply criticized the government's tax experiments, activities that destroy economic confidence, the large budget deficit, and inflation.

Decisions Made 1
Collective Decision

The sitting was extended until the agenda item was concluded, but no later than 14:00. (In favor 15, Against 0, Abstentions 0).

Most Active Speaker
Urmas Reinsalu
Urmas Reinsalu

Isamaa fraktsioon

Urmas Reinsalu (Isamaa, right-wing) was active in the negotiations, presenting a sharply critical and detailed overview of the consequences of the government's economic policy.

Esimees Lauri Hussar
13:01:04
AI Summary

Chairman Lauri Hussar opens the debate on the matter of national importance, "The Future of the Estonian Economy," initiated by the Reform Party faction. He introduces the procedure, the four presenters (including Maris Lauri, Minister Erkki Keldo, and representatives of the business sector), and explains the rules for submitting questions and conducting discussions.

Maris Lauri
Maris Lauri
Profiling Eesti Reformierakonna fraktsioon
13:03:03
AI Summary

Maris Lauri analyzes the competitiveness of the Estonian economy during this period of general instability. She emphasizes that sustainable development requires strengthening four key pillars: achieving higher value creation from natural resources; continuous innovation, driven by the inevitable convergence of wages; the accumulation of domestic capital (criticizing the dismantling of the pension pillar); and the smarter application of knowledge and entrepreneurship. She stresses that all four of these pillars must be strong.

Esimees Lauri Hussar
13:15:19
AI Summary

Chairman Lauri Hussar thanked the presenter, introduced the questions and answers session, and first gave the floor to his colleague, Mait Klaassen.

Mait Klaassen
Mait Klaassen
Profiling Eesti Reformierakonna fraktsioon
13:15:21
AI Summary

Mait Klaassen criticized the presenter for ignoring the topic of human capital and asked how it would be possible, under conditions of low unemployment, to activate and bring back to the labor market a large number of inactive individuals who are currently missing from official registers, so that they could move into better-paid jobs.

Maris Lauri
Maris Lauri
Profiling Eesti Reformierakonna fraktsioon
13:16:09
AI Summary

Maris Lauri addressed the development of human capital, stressing that while Estonia's employment rate is high, the major challenge lies in bringing discouraged or passive individuals back into the labor market. This requires a complex, long-term process where, alongside formal institutional support, the emotional contribution and encouragement from family and community are crucial—both for taking small steps and for making unexpected career changes.

Esimees Lauri Hussar
13:18:54
AI Summary

Chairman Lauri Hussar gave the floor to the next speaker, Margit Sutrop.

Margit Sutrop
Margit Sutrop
Profiling Eesti Reformierakonna fraktsioon
13:18:57
AI Summary

Margit Sutrop acknowledges the growing contribution of the state and businesses to research and development (R&D), but raises the question of whether the conditions for funding should be altered. The goal would be to steer companies (particularly in areas like defense research) toward collaborating more closely with universities, rather than simply keeping their own researchers on staff. She points to the Finnish model as an example, where the involvement of universities is mandatory.

Maris Lauri
Maris Lauri
Profiling Eesti Reformierakonna fraktsioon
13:20:15
AI Summary

Maris Lauri explains that the state has successfully narrowed the gap between ivory-tower university science and the business sector by emphasizing the practical side. However, cooperation must now be deepened to also grasp the long-term value of theoretical science. This requires both greater investment capability in Estonia and recognition by entrepreneurs of a new generation of practice-oriented researchers.

Esimees Lauri Hussar
13:22:35
AI Summary

Chairman Lauri Hussar. Valdo Randpere was called to the podium to begin his presentation, but the content of his remarks is not reflected in this text.

Valdo Randpere
Valdo Randpere
Profiling Eesti Reformierakonna fraktsioon
13:22:37
AI Summary

Valdo Randpere addresses the Tallinn mayoral candidate with a question regarding whether the disproportionately large concentration of the Estonian economy within the "golden circle" of the capital and Harju County is an advantage or a disadvantage from the perspective of the country as a whole. He also requests clarification on what measures the mayor should implement to stimulate the economy outside of Tallinn as well, in order to reduce centralization.

Maris Lauri
Maris Lauri
Profiling Eesti Reformierakonna fraktsioon
13:23:33
AI Summary

Maris Lauri treats the concentration of economic activity in centers (such as Tallinn) as an inevitable economic truth, emphasizing that Tallinn’s progress is crucial for the whole of Estonia. However, she warns against administrative sluggishness that forces businesses out of the capital and into the "golden ring" (the surrounding municipalities). She argues that while it is unwise to fight irrationally against the existence of these centers, development and the utilization of local advantages must be supported everywhere in Estonia—in Pärnu, Narva, Võru, and elsewhere—to ensure more uniform development and prevent Tallinn from turning into a "bomb crater."

Esimees Lauri Hussar
13:27:22
AI Summary

Chairman Lauri Hussar gave the floor to Aivar Sõerd, inviting him to the podium.

Aivar Sõerd
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioon
13:27:23
AI Summary

Aivar Sõerd highlighted the drop in labor productivity—a key indicator of national competitiveness—in 2021, 2022, and 2023, and requested information on whether this concerning trend has persisted or if a reversal has taken place over the past year.

Maris Lauri
Maris Lauri
Profiling Eesti Reformierakonna fraktsioon
13:28:18
AI Summary

Maris Lauri explains that while productivity is crucial, its decline in Estonia in recent years has often stemmed from behavioral factors. Specifically, due to labor shortages, business owners are avoiding layoffs and reducing workloads. This suggests a focus on future optimism and proactive planning. However, achieving sustained productivity growth still requires investment and a thorough review of the production structure.

Esimees Lauri Hussar
13:30:39
AI Summary

Chairman Lauri Hussar thanked the previous presenter, declared the question-and-answer period closed, and invited the next speaker, Minister of Economic Affairs and Industry Erkki Keldo, to the Riigikogu rostrum, clarifying both the length of the presentation and the rules for submitting questions.

Majandus- ja tööstusminister Erkki Keldo
13:31:14
AI Summary

Minister of Economic Affairs and Industry Erkki Keldo expresses optimism regarding the recovery of the Estonian economy and its future rapid growth, emphasizing that the foundation for success rests on security (large defense expenditures), a knowledge-based economy, robust investment in research and development, and ambitious export expansion. To support these goals, the government is creating a more business-friendly and competitive environment by accelerating investments and reforming the labor market, while simultaneously calling for the abandonment of the pessimistic "don't build anything" mentality.

Esimees Lauri Hussar
13:50:59
AI Summary

Chairman Lauri Hussar thanked the respected minister, noting that he still had questions, and subsequently gave the floor to Valdo Randpere.

Valdo Randpere
Valdo Randpere
Profiling Eesti Reformierakonna fraktsioon
13:51:01
AI Summary

Valdo Randpere began by praising the presenter for their work in advancing labor legislation and noting Estonia’s recognition as the friendliest country in Europe. However, he then shifted his focus to the status of the Helsinki-Tallinn tunnel project (Talsinki), asking whether this economically vital undertaking has completely stalled or if development is quietly progressing.

Majandus- ja tööstusminister Erkki Keldo
13:52:11
AI Summary

Minister of Economic Affairs and Industry Erkki Keldo emphasizes that the Estonian economy is vitally dependent on the well-being of Finland and Sweden, which is why it is crucial to support our neighbours in strengthening their competitiveness and investments, confirming meetings with Finnish investors. Furthermore, he deems it necessary to highlight the friendliness of Estonians towards tourists and to continue with labour law reforms in order to make the legislation more flexible and effective during difficult times, while simultaneously protecting the vulnerable.

Esimees Lauri Hussar
13:54:17
AI Summary

Chairman Lauri Hussar, Mario Kadastik was called to the lectern to deliver his presentation.

Mario Kadastik
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
13:54:19
AI Summary

Mario Kadastik acknowledged the contribution of the public sector's research and development activities, but drew attention to the fact that due to the low participation of the private sector, Estonia remains below the European average overall, which is likely also related to low labor productivity, and asked the minister how to improve cooperation and priority setting between the Ministry of Education and Research and the industry to improve the situation.

Majandus- ja tööstusminister Erkki Keldo
13:55:09
AI Summary

Minister of Economic Affairs and Industry Erkki Keldo emphasizes that economic prosperity and innovation depend on better linking the real-world applicability of basic science and entrepreneurship, for which the Ministry of Education and Research and the Ministry of Economic Affairs are cooperating more closely. The speaker highlights Estonia's exceptional success in international scientific organizations like CERN and ESA, noting that Estonian entrepreneurs are so capable that the state's contribution returns to the economy many times over (e.g., three times more from ESA). He stresses that prosperity can only stem from science, exports, and European-level debates, not from the redistribution of taxes.

Esimees Lauri Hussar
13:56:57
AI Summary

Chairman Lauri Hussar invited Margit Sutrop to the podium so that she could begin her presentation.

Margit Sutrop
Margit Sutrop
Profiling Eesti Reformierakonna fraktsioon
13:56:59
AI Summary

Margit Sutrop, referencing the artificial intelligence conference and the low AI adoption rate among American companies, asks the minister what specific measures the state could implement to support Estonian entrepreneurs in the wider deployment of AI, in order to alleviate labor shortages and rising costs, while emphasizing the need for closer cooperation between researchers, education, and the business sector.

Majandus- ja tööstusminister Erkki Keldo
13:58:20
AI Summary

Minister of Economic Affairs and Industry Erkki Keldo pointed out the rapid uptake of artificial intelligence in Estonian businesses, noting that adoption has jumped from 5% to 14% within a year, though there is still room for growth compared to the Benelux and Nordic countries. To encourage entrepreneurs, the Ministry of Economic Affairs offers innovation measures designed to mitigate risk. The national AI strategy, spearheaded by the Minister of Justice and Digital Affairs in close collaboration with other ministries, focuses on both education (for example, the gymnasium program) and future infrastructure, such as establishing a chip competence center, to guarantee the necessary expertise and risk tolerance when developing new technologies.

Esimees Lauri Hussar
14:00:28
AI Summary

Chairman Lauri Hussar and Diana Ingerainen were invited to speak, but the content of her presentation has not been provided.

Diana Ingerainen
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
14:00:30
AI Summary

Diana Ingerainen expresses concern about the rigidity of e-Estonia developments, highlighting that while 20 years ago development was carried out in flexible cooperation with the private sector (for example, the e-family doctor center), the state is now attempting to manage large and slow projects itself (such as the Health Insurance Fund [Tervisekassa] and TEHIK). She therefore asks why private sector involvement has decreased and whether the state could become more flexible in this regard.

Majandus- ja tööstusminister Erkki Keldo
14:01:38
AI Summary

Minister of Economic Affairs and Industry Erkki Keldo admits that the state has become somewhat complacent in its bureaucracy, and emphasizes the urgent need to restore trust in the private sector by involving it as a partner in finding more innovative and cost-effective solutions in education, healthcare, and public procurement. This should be done, for example, by utilizing innovation procurements to improve system efficiency and service quality in a small country with limited resources.

Esimees Lauri Hussar
14:03:32
AI Summary

Chairman Lauri Hussar called upon Toomas Järveoja to speak, thereby giving him the floor to begin his presentation.

Toomas Järveoja
Toomas Järveoja
Profiling Eesti Reformierakonna fraktsioon
14:03:34
AI Summary

Toomas Järveoja highlights the serious labor shortage faced by Elva's major employers (such as Saint-Gobain and Enics/GPV), a situation that compels them to bring in workers from Latvia and Southern Estonia. He also inquires about the government's plans for improving public transport and the availability of labor.

Majandus- ja tööstusminister Erkki Keldo
14:04:13
AI Summary

Minister of Economic Affairs and Industry Erkki Keldo highlighted the shortage of qualified labor as the primary bottleneck for economic growth, stressing that in the short term, supplementary training and retraining must be channeled through the Unemployment Insurance Fund (Töötukassa) to align with the real needs of the economy. The long-term solution, however, involves reforming vocational education, enhancing its reputation, and more proactively encouraging young people to acquire professional skills, alongside allowing the strictly regulated recruitment of foreign labor where necessary.

Esimees Lauri Hussar
14:07:33
AI Summary

Chairman Lauri Hussar gave the floor to Õnne Pillak.

Õnne Pillak
Õnne Pillak
Profiling Eesti Reformierakonna fraktsioon
14:07:34
AI Summary

Õnne Pillak commended the minister’s ambitious vision of Estonia as Europe’s fastest-growing economy, but demanded immediate and concrete three-step measures to ensure that this goal does not remain mere rhetoric.

Majandus- ja tööstusminister Erkki Keldo
14:07:54
AI Summary

Minister of Economic Affairs and Industry Erkki Keldo stressed that economic growth in Estonia relies on three main pillars: a stable and lower tax environment, which puts more money into the hands of businesses and people; stronger exports and the opening of new markets, which is essential for an economy with a small domestic market; and investing in research and development to cultivate a smarter, higher value-added workforce.

Esimees Lauri Hussar
14:09:25
AI Summary

Chairman Lauri Hussar gave the floor to the renowned ski star Kristina Šmigun-Vähi, inviting her up to the podium to deliver her presentation.

Kristina Šmigun-Vähi
Kristina Šmigun-Vähi
Profiling Eesti Reformierakonna fraktsioon
14:09:27
AI Summary

Kristina Šmigun-Vähi is addressing the minister to find out which economic sectors offer the greatest potential for success for young Estonians in the near future, and what government measures are being implemented to support those fields.

Majandus- ja tööstusminister Erkki Keldo
14:09:50
AI Summary

Minister of Economic Affairs and Industry Erkki Keldo emphasizes that the key to Estonia's future labor market and economic growth lies in linking the country's strong IT competence with smart industry and deep technology, especially in the defense industry, as this enables the creation of high value-added products, compensating for Estonia's inability to compete in mass production.

Esimees Lauri Hussar
14:11:09
AI Summary

Chairman Lauri Hussar concluded the discussion with the minister, thanking him for his presentation and answers, and then invited Allan Martinson, the president of the Estonian Founders Society, to the Riigikogu podium. Hussar specified the time limits for Martinson’s presentation and the subsequent question-and-answer round (up to 20 minutes for each).

EAS-i president Allan Martinson
14:11:40
AI Summary

Allan Martinson, President of the Estonian Founders Society (and also referred to as EAS President), described the startup sector as the main engine of the Estonian economy. It currently contributes 4.5% of GDP and has reached its best historical state, despite the fact that the founding and financing of new companies have normalized compared to the peak of 2021. Future growth, however, must shift away from extensive methods (bringing in more employees and capital) and instead rely on an intensive leap in productivity. The primary drivers for this leap are the widespread application of artificial intelligence and the development of unique niches, such as defense technology.

Esimees Lauri Hussar
14:31:36
AI Summary

Chairman Lauri Hussar interrupted the esteemed speaker, noting that the allotted time was about to expire, and asked him directly if he wished to have extra time to continue his presentation.

EAS-i president Allan Martinson
14:31:42
AI Summary

The president of EAS, Allan Martinson, requested an additional minute and a half of time for his speech.

Esimees Lauri Hussar
14:31:46
AI Summary

Chairman Lauri Hussar made a brief request, asking for an extra minute and a half to conclude his presentation.

EAS-i president Allan Martinson
14:31:47
AI Summary

EAS President Allan Martinson emphasizes that developing the local defense industry—which, unlike the rest of the technology sector, has only one client, the state—requires close and deeply integrated cooperation between government agencies and the private sector. Furthermore, the Defense Forces must be an active part of the product development process, not merely a purchaser. Additionally, the technology sector's ambition is to contribute 30% of GDP by 2033, but achieving this goal requires, according to entrepreneurs, a stable economic environment and tax certainty.

Esimees Lauri Hussar
14:34:05
AI Summary

Chairman Lauri Hussar politely thanked the previous speaker, announced the start of the Q&A session, and then gave the floor to Urve Tiidus.

Urve Tiidus
Urve Tiidus
Profiling Eesti Reformierakonna fraktsioon
14:34:07
AI Summary

Urve Tiidus asked the presenter in which sector the projected creation of 300 new startups annually should materialize, noting that financial and payment services currently dominate the rankings, and suggesting the education sector as an alternative area for growth.

EAS-i president Allan Martinson
14:34:43
AI Summary

EAS President Allan Martinson highlighted the diversity of the Estonian startup scene. While business software certainly dominates, he stressed that the sector's development is organic, meaning the state cannot steer it, but must instead create a favorable environment. However, educational technology (edutech) requires separate support. This is commercially challenging because the primary buyers are state institutions, but it is simultaneously a field driven by a strong sense of mission, particularly when creating Estonian-language or exportable software.

Esimees Lauri Hussar
14:36:02
AI Summary

Chairman Lauri Hussar gave the floor to Urmas Kruuse, inviting him to the podium.

Urmas Kruuse
Urmas Kruuse
Profiling Eesti Reformierakonna fraktsioon
14:36:04
AI Summary

Urmas Kruuse highlighted the unique nature of Estonia’s e-state as the basis for development, but he centered his attention on questions concerning the lack of risk appetite among new generations and the potential for the Estonian defense industry to generate added value through innovation and R&D, with technological solutions that could also be transferred to everyday civilian life.

EAS-i president Allan Martinson
14:37:07
AI Summary

EAS President Allan Martinson believes that while the e-state provides a favorable environment for the technology sector, Estonia's success is primarily driven by young, risk-taking entrepreneurs and the groundbreaking innovation in the defense industry spurred by the war in Ukraine, particularly in the field of drones. This innovation is creating enormous momentum for grassroots development, and its positive impact will eventually spill over into the civilian economy.

Esimees Lauri Hussar
14:39:02
AI Summary

Chairman Lauri Hussar invited Kristo Enn Vaga to the podium, giving him the floor next.

Kristo Enn Vaga
Kristo Enn Vaga
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
14:39:03
AI Summary

Kristo Enn Vaga praised the speaker's position that the defense industry must be a broad-based national objective, not just a narrow topic concerning the Defence Forces. He then asked Martinson, as an entrepreneur in the field, to describe the current state of Estonian defense technology (including the use of R&D and data analytics) and to propose ways the state could further accelerate its development in Estonia through infrastructure, legislation, or political direction.

EAS-i president Allan Martinson
14:40:11
AI Summary

EAS President Allan Martinson emphasizes the wide spectrum of the Estonian defense industry, which spans everything from clothing to AI-based drones. He notes that the industry’s success crucially relies on specialists who have transitioned from the general technology sector. Although the workforce is limited, the development potential is significant. However, realizing this potential requires closer cooperation between the state and the industry, which is the reason behind the creation of the Defense Forces Innovation and Future Capability Command. The success of this new unit, however, depends on adequate staffing, funding, and a clear mandate to improve the currently negligible development budget and establish a streamlined testing environment for the rapid deployment of new technologies.

Esimees Lauri Hussar
14:42:48
AI Summary

Chairman Lauri Hussar and Mait Klaassen were invited to speak.

Mait Klaassen
Mait Klaassen
Profiling Eesti Reformierakonna fraktsioon
14:42:50
AI Summary

Mait Klaassen thanked the speaker for the eye-opening presentation and drew attention to the problem: the establishment of new enterprises requiring physical space is being hindered by the public's "not in my backyard" opposition. He is asking the Riigikogu (Parliament) for solutions on how to explain to people that these developments are actually the source of future well-being, taxes, and jobs.

EAS-i president Allan Martinson
14:43:54
AI Summary

EAS President Allan Martinson believes that solutions for controversial developments (such as defense industry parks) should not be imposed, but rather must arise through societal consensus. He emphasized the need for a more intensive dialogue, noting that greater public participation in the process leads to greater acceptance, and even proposed generating economic interest as a method of engagement.

Aseesimees Arvo Aller
14:45:01
AI Summary

Deputy Chairman Arvo Aller gave the floor to Pipi-Liis Siemann, inviting her to speak.

Pipi-Liis Siemann
Pipi-Liis Siemann
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
14:45:03
AI Summary

Pipi-Liis Siemann thanked the presenter for the presentation and stressed that in the public sector, where the focus is on efficiency and reducing bureaucracy, the number of officials has remained largely unreduced despite technological development. She therefore asks how artificial intelligence can be used to bring the public sector back to the forefront and what joint steps should be taken to achieve this.

EAS-i president Allan Martinson
14:46:03
AI Summary

EAS President Allan Martinson, fueled by the optimism of a startup entrepreneur, argues that while the state cannot be built from scratch, it is vital to continuously optimize and automate a large portion of government processes. He proposes treating the Estonian state figuratively as a software product to make citizens' interaction with the government significantly simpler and more effective, leveraging modern tools like artificial intelligence.

Aseesimees Arvo Aller
14:47:58
AI Summary

Vice-Chairman Arvo Aller yielded the floor to Kalev Stoicescu, inviting him to deliver his presentation.

Kalev Stoicescu
Kalev Stoicescu
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
14:47:59
AI Summary

Kalev Stoicescu asks the speaker whether the Estonian defense industry should be looking for and securing a major strategic investor, similar to what Latvia and Lithuania have done, and whether Estonia has perhaps issued too many negative responses (pointing specifically to Rheinmetall and Nammo). He stresses the necessity of being flexible and establishing favorable terms for investors, instead of adhering strictly to rigid criteria.

EAS-i president Allan Martinson
14:49:06
AI Summary

EAS president Allan Martinson analyzes the paradigm shift occurring in the defense industry, highlighting the stark contrast between slow and unreasonably expensive large defense companies (the "defense primes") and fast, innovative, and significantly cheaper startups. He emphasizes that the majority of genuinely effective innovation, particularly in the context of Ukraine, stems precisely from these startups, thereby calling into question the traditional reliance on large, bureaucratic suppliers.

Aseesimees Arvo Aller
14:51:24
AI Summary

Deputy Chairman Arvo Aller gave the floor to Kristina Šmigun-Vähi, inviting her to the podium or to make her presentation.

Kristina Šmigun-Vähi
Kristina Šmigun-Vähi
Profiling Eesti Reformierakonna fraktsioon
14:51:27
AI Summary

Kristina Šmigun-Vähi praised the ideas put forward by the presenter, but asked him or her to specify what the three most critical decisions would be that he or she would implement if given complete free rein to shape Estonia's economic policy strategy for the next ten years.

EAS-i president Allan Martinson
14:51:49
AI Summary

EAS President Allan Martinson admitted the question posed was superb, but declined to answer it immediately to avoid inaccurate speculation. He promised, however, to thoroughly consider the matter and present the results publicly in the future.

Aseesimees Arvo Aller
14:52:10
AI Summary

Deputy Chairman Arvo Aller gave the floor to Jüri Jaanson, inviting him to deliver his presentation.

Jüri Jaanson
Jüri Jaanson
Profiling Eesti Reformierakonna fraktsioon
14:52:11
AI Summary

Jüri Jaanson pointed out the primary bottleneck impeding the technology sector's development—namely, labor resources—and asked the speaker how the Riigikogu could help better integrate individuals with reduced work capacity, thereby boosting productivity and economic growth.

EAS-i president Allan Martinson
14:53:15
AI Summary

Allan Martinson, President of EAS, explained that while the labor force has remained stable, companies are focusing recruitment on specialists with strong technological backgrounds. He stressed that a disability is not a hindrance, provided it doesn't impede the application of one's skills. However, he also warned that due to increased efficiency and automation, many average and secure job roles (such as those in call centers) will inevitably vanish. This means that success in the future job market will belong to those capable of generating very high added value.

Aseesimees Arvo Aller
14:55:42
AI Summary

Vice-Chairman Arvo Aller announced the conclusion of the Question and Answer period and thanked the presenter.

EAS-i president Allan Martinson
14:55:48
AI Summary

EAS President Allan Martinson concluded his speech with a brief closing note, once again expressing his gratitude and sending good wishes to the audience.

Aseesimees Arvo Aller
14:55:49
AI Summary

Deputy Chairman Arvo Aller introduced and welcomed to the stage the day's fourth speaker, Liina Vahtras, who is a member of the management board of the Entrepreneurship and Innovation Foundation and heads up Estonia's e-Residency and foreign marketing sectors.

EIS-i juhatuse liige Liina Vahtras
14:56:05
AI Summary

Liina Vahtras, a member of the EIS board, emphasized the significant economic impact of e-Residency—a unique achievement of the Estonian digital state—which has brought 370 million euros in direct revenue to the state treasury over ten years and led to the establishment of over 37,000 companies. She also presented a future vision, detailing plans to boost the program's competitiveness and accelerate the application process (from two months down to two weeks) by replacing the physical card with a fully digital solution based on biometric remote identification, thereby securing Estonia's position as a global digital state.

Aseesimees Arvo Aller
15:16:28
AI Summary

Deputy Chairman Arvo Aller thanked [the speaker] for the precise use of time, noted that there were questions being posed to the speaker, and subsequently gave the floor to Urve Tiidus.

Urve Tiidus
Urve Tiidus
Profiling Eesti Reformierakonna fraktsioon
15:16:33
AI Summary

Urve Tiidus commended the excellent presentation on e-residency, which suggested that development knows no limits, and immediately asked whether Estonia had competitors from other countries in this field.

EIS-i juhatuse liige Liina Vahtras
15:17:01
AI Summary

EIS board member Liina Vahtras emphasizes that Estonian e-residency is unique compared to similar programs in other countries, thanks to digitized state services that make the digital identity genuinely usable. This is why, when assessing success, the Estonian business environment is often compared to major business hubs like Ireland or Delaware, focusing specifically on the speed of company formation and the simplicity of management.

Aseesimees Arvo Aller
15:17:54
AI Summary

Deputy Speaker Arvo Aller called upon Pipi-Liis Siemann to speak next.

Pipi-Liis Siemann
Pipi-Liis Siemann
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:17:55
AI Summary

Pipi-Liis Siemann is pleased about the significant growth potential of the e-residency program, but she raises concerns regarding the limits of processing capacity. She questions whether it is realistic to maintain the goal of completing the entire process within two to three weeks if the number of applications increases severalfold.

EIS-i juhatuse liige Liina Vahtras
15:18:34
AI Summary

Liina Vahtras, a member of the EIS management board, admits that due to the unexpected surge in applications, they have struggled with processing. While they are hiring more staff, the long-term strategy involves automating processes, for instance, by using artificial intelligence, to specifically speed up the review of applications from entrepreneurs who already have a functioning business and meet specific criteria.

Aseesimees Arvo Aller
15:19:49
AI Summary

Following a brief introduction, Deputy Chairman Arvo Aller gave the floor to Luisa Rõivas.

Luisa Rõivas
Luisa Rõivas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:19:50
AI Summary

Luisa Rõivas has expressed interest in the new, cardless e-residency concept, specifically asking on what basis the growth in company formation is being projected and how this will be measured in the future. She simultaneously emphasized the need to strengthen e-residents' connection with Estonian society so that their investments are more permanent and they feel a sense of belonging.

EIS-i juhatuse liige Liina Vahtras
15:20:41
AI Summary

Liina Vahtras, a member of the EIS management board, emphasizes that the data-driven streamlining of the e-residency application process is critically important to prevent the loss of business ideas and to achieve up to 15% more new companies annually. Furthermore, active investment is being made in building the e-resident community and ensuring their closer integration with the Estonian business environment to foster mutual cooperation.

Aseesimees Arvo Aller
15:21:47
AI Summary

Vice-Chairman Arvo Aller yielded the floor to Kristina Šmigun-Vähi, inviting her to begin her address.

Kristina Šmigun-Vähi
Kristina Šmigun-Vähi
Profiling Eesti Reformierakonna fraktsioon
15:21:49
AI Summary

Kristina Šmigun-Vähi posed two important questions to the presenter regarding the e-residency program, first inquiring about the main motivation of e-residents when they lack a mandatory business obligation, and secondly, what strategic steps Estonia should take to attract more entrepreneurs and investors to the program.

EIS-i juhatuse liige Liina Vahtras
15:22:26
AI Summary

Liina Vahtras, a member of the EIS board, categorized e-residents into three motivation groups—the curious, signatories for Estonian companies, and entrepreneurs seeking expansion within the European Union—noting that the latter group particularly values Estonia's low level of bureaucracy (even within the EU). She also stressed the urgent necessity of rapidly implementing the card-freedom legislative amendment so that the program, which has stood still for 10 years, can begin testing hypotheses and attracting ambitious growth companies to Estonia that would bring economic benefit to the state.

Aseesimees Arvo Aller
15:25:28
AI Summary

Deputy Chairman Arvo Aller, who was evidently presiding over the session, handed the floor over to Jaak Aab.

Jaak Aab
Jaak Aab
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:25:30
AI Summary

Jaak Aab acknowledged the presenter's work in mitigating security risks, but highlighted the concern among entrepreneurs that the support measures provided by the Entrepreneurship and Innovation Foundation are too fragmented and overly bureaucratic. He then asked whether EAS plans to consolidate these measures to make them larger in scope and more flexible, thereby reducing the complexity of the application process.

EIS-i juhatuse liige Liina Vahtras
15:26:36
AI Summary

Liina Vahtras, a member of the EIS management board, emphasized that a comprehensive review of EIS services and financial instruments is currently underway. The strategic objective of this review is to reduce measures with low impact and channel resources specifically toward those that help businesses achieve greater growth, export volume, research intensity, and productivity.

Aseesimees Arvo Aller
15:27:15
AI Summary

Deputy Chairman Arvo Aller and Jüri Jaanson were called to the podium, but the substantive presentation remained unheard.

Jüri Jaanson
Jüri Jaanson
Profiling Eesti Reformierakonna fraktsioon
15:27:16
AI Summary

Jüri Jaanson praised the presentation's selling skills, but deemed it overly optimistic because it proposed solutions to non-existent problems. He then asked ironically, considering the constant changes to the Estonian tax system, what exactly that flexible economic model was that could actually be marketed to e-residents and foreign investors.

EIS-i juhatuse liige Liina Vahtras
15:28:23
AI Summary

Liina Vahtras, a member of the EIS board, stresses that e-residents are willing to contribute to national security and even accept tax hikes. However, for their small, startup companies, it is vital to maintain the current tax system, especially the tax exemption for reinvested profits, which they view as a significant competitive advantage for Estonia.

Aseesimees Arvo Aller
15:29:38
AI Summary

Vice-Chairman Arvo Aller invited Irja Lutsar to the podium to deliver her presentation, but the actual content of the speech was not included in the text.

Irja Lutsar
Irja Lutsar
Profiling Eesti 200 fraktsioon
15:29:40
AI Summary

Irja Lutsar echoes the sentiments of the previous speakers but raises the question of why e-residency has remained a project unique to Estonia. She seeks to know what fundamental risks the other nearly 200 countries see in it and what members of the Riigikogu should be particularly vigilant about.

EIS-i juhatuse liige Liina Vahtras
15:30:30
AI Summary

Liina Vahtras, a member of the EIS board, believes that Estonia’s digital state derives its unique competitive advantage from 100% digitized public services, which serve as a foundation for building private sector solutions. To ensure security, she proposes that all foreign entrepreneurs should be required to obtain e-residency. This would enable thorough background checks and supervision, while also establishing the necessary audit trail.

Aseesimees Arvo Aller
15:32:05
AI Summary

Vice-Chairman Arvo Aller concluded the round of questions and announced that, at the initiator’s request, a vote must be taken on the proposal to extend the session time, which stipulates that work will continue until the agenda item is exhausted, but no later than 14:00.

Aseesimees Arvo Aller
15:35:12
AI Summary

Vice-Chairman Arvo Aller announced the successful adoption of the proposal (with 15 votes in favor), extended the session until 2:00 PM, and subsequently opened the discussions for faction representatives, calling Õnne Pillak of the Estonian Reform Party to the podium first.

Õnne Pillak
Õnne Pillak
Profiling Eesti Reformierakonna fraktsioon
15:35:32
AI Summary

Õnne Pillak expressed great optimism about the future of the Estonian economy, predicting rapid growth driven by the successful startup sector and e-residency, as well as the government's targeted policies. These policies include lowering the tax burden, reducing bureaucracy, maintaining investments in research and development (R&D), and ensuring national security by raising defense spending to at least 5% of GDP. She emphasized that mutual cooperation between the state and entrepreneurs is crucial for continuing Estonia's success story.

Aseesimees Arvo Aller
15:39:51
AI Summary

Deputy Chairman Arvo Aller requested three minutes of additional time on procedural grounds.

Õnne Pillak
Õnne Pillak
Profiling Eesti Reformierakonna fraktsioon
15:39:56
AI Summary

Õnne Pillak stressed that revitalizing the Estonian economy requires promoting the influx of skilled labor that generates added value and expanding the e-residency program, all while reducing associated bureaucracy. She pointed to the government’s concrete measures aimed at supporting the economy, including the establishment of a new support scheme for large-scale investments, the development of the defense industry, the launch of the largest four-lane highway construction program in the history of re-independent Estonia, and the continuation of the Rail Baltic project. She confirmed that these initiatives collectively send a positive message about Estonia as an investment-friendly business environment.

Aseesimees Arvo Aller
15:42:19
AI Summary

Deputy Speaker Arvo Aller invited Jaak Aab to the rostrum to present the views of the Social Democratic Party faction.

Jaak Aab
Jaak Aab
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:42:25
AI Summary

Jaak Aab stresses that the main prerequisite for Estonian economic competitiveness and attracting investments is certainty, which is being hampered by the current security-political situation and inadequate communication. He criticizes the scare tactics employed by politicians and the dishonest communication surrounding the security tax, pointing to Lithuania's positive example of achieving consensus on national defense funding. He argues that Estonia should instead emphasize its strength and will to defend itself in order to create a positive environment for investments and public trust.

Aseesimees Arvo Aller
15:47:10
AI Summary

Arvo Aller, the Deputy Chairman, confined himself to a brief procedural remark, requesting three additional minutes for the speaking time.

Jaak Aab
Jaak Aab
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:47:11
AI Summary

Jaak Aab stressed the strategic importance of spending on healthcare and health promotion, cautioning that cuts in this area would result in the loss of billions in the long run due to declining workforce health. To incentivize regional development, he suggested tying municipal revenue (derived from income tax on dividends) to job creation, utilizing a regional coefficient. Furthermore, he considered reform of the education system vital for directing more young people toward high-quality vocational training, based on the needs of the economy.

Aseesimees Arvo Aller
15:50:48
AI Summary

Vice-Chairman Arvo Aller merely delivered a brief procedural announcement, signaling the start of the allotted time.

Jaak Aab
Jaak Aab
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:50:50
AI Summary

Jaak Aab urged quicker and better action to ensure the economy could recover, wishing the listeners strength and success in this endeavor.

Aseesimees Arvo Aller
15:50:55
AI Summary

Vice-Chairman Arvo Aller thanked the previous speaker and subsequently gave the floor to Marek Reinaas, the representative of the Eesti 200 parliamentary group.

Marek Reinaas
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:51:08
AI Summary

Marek Reinaas praises the new liberal government's reform-minded economic policy, but stresses that the future of the Estonian economy hinges on entrepreneurship and requires a structural leap forward in development. This is because current profits are overly concentrated in real estate and banking, and productivity remains low (at 77% of the EU average). Consequently, the focus must shift away from the local market toward exports, particularly digital services, and investment must be directed into technology and innovation to foster an economy with higher added value.

Aseesimees Arvo Aller
15:56:07
AI Summary

Vice-Chairman Arvo Aller directly asked the audience if they wanted extra time.

Marek Reinaas
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:56:09
AI Summary

Marek Reinaas briefly but firmly confirmed his complete agreement with the foregoing statement.

Aseesimees Arvo Aller
15:56:10
AI Summary

Deputy Chairman Arvo Aller requested an additional three minutes.

Marek Reinaas
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:56:11
AI Summary

Marek Reinaas believes that Estonian entrepreneurs and politicians must abandon the mentality of avoiding loss and start focusing on winning, because Estonia holds an excellent position in the European Union's largest market—a position that should be capitalized on with an innovative mindset to ensure economic growth and national prosperity.

Aseesimees Arvo Aller
15:58:10
AI Summary

Deputy Chairman Arvo Aller thanked [the assembly/the previous speaker] and subsequently granted Urmas Reinsalu, the representative of the Isamaa faction, three additional minutes of speaking time.

15:58:36
AI Summary

Urmas Reinsalu sharply criticizes the government's economic policy, asserting that the coalition's "unique experiment" (including constant tax hikes and changes) has shattered the confidence of entrepreneurs and consumers, led Estonia into the longest economic stagnation in EU history, lowered productivity, and created a negative net flow of foreign investments. Furthermore, he accuses the government of financial irresponsibility and chaos in energy policy, stating that a political change is essential for restoring economic optimism and prosperity.

Aseesimees Arvo Aller
16:06:19
AI Summary

Deputy Speaker Arvo Aller, noting the absence of requests to speak, announced the closure of the debate, thereby concluding both the discussion of the matter of national importance and the current sitting.