Considering the material from the Riigikogu budget control committee’s Monday discussion on price increases, Eurostat’s comparative data regarding price increases, the Institute for Economic Research’s latest barometer, the March Eurobarometer survey, and Isamaa’s recent proposals on how to mitigate inflation (reducing government spending with a negative supplementary budget and abolishing increases in indirect taxes – gas, petrol, electricity and diesel excise duties, and VAT – in the coming months), conclusions regarding government policy.
Session: 15th Riigikogu, 5th sitting, press briefing
Date: 2025-04-16 15:27
Participating Politicians:
Total Speeches: 15
Membership: 15
Agenda Duration: 17m
AI Summaries: 15/15 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The first paragraph: Today's third question before the Riigikogu was directed at Prime Minister Kalle Jaanson and concerned the material for the Riigikogu Budgetary Control Committee’s discussion on Monday’s price increases. The discussion utilized Eurostat’s comparative data on price increases, the Institute for Economic Research's latest barometer, and the March Eurobarometer, and additionally examined Isamaa’s proposals from the past month to alleviate inflation – including possibilities to reduce government spending and abandon increases in indirect taxes (gas, gasoline, electricity, and diesel excise tax and VAT) in the coming months. The aim was to assess the government's policy regarding price increases and the decline in purchasing power, and to find possible relief measures.
Paragraph 2: The discussion focused on the handling of inflation policy and, based on a wealth of source material – both the Bank of Estonia’s forecasts, European Union data, and comparisons with the Baltic states – featured extensive explanations and conclusions. Participants highlighted that inflation in Estonia is largely linked to wage growth and global commodity prices, and that tax increases and previous promises regarding indirect taxes have been a topic of discussion. In addition, the question was raised as to why Latvia and Lithuania's inflation forecasts are significantly lower than Estonia’s within the Baltics, and why there are large differences in price increases between the Baltic states. Isamaa’s proposals to alleviate inflation, which include relaxing tax increases and reducing costs, were also central to the discussion.
Decisions Made 1
During the course of this discussion, no final decisions were reached; the adoption of decisions and the approval of specific measures were deferred to subsequent proceedings, and further discussion requires additional information and analysis.
Most Active Speaker
The most active speaker was Urmas Reinsalu (Isamaa). He represented a right-wing (right-wing) political line; his participation and comments were markedly dominant throughout the discussion.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar presented to Prime Minister Kristen Michal a very thorough question from Riigikogu member Urmas Reinsalu, whose core is easing inflation and evaluating government policy, based on materials from the Riigikogu Budget Control Committee on price increases, Eurostat’s comparable data, the Konjunktuuriinstituut barometer, the March Eurobarometer, and Isamaa’s latest proposals to prevent increases in indirect taxes and to reduce government spending with a negative supplementary budget.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu thanks the Speaker of the Riigikogu and asks why his question was laughed at when it was read aloud, referring to the Riigikogu leadership.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar praised Urmas Reinsalu for posing a very precise and thorough question.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu highlighted Estonia's high inflation and shrinking purchasing power, noted tax increases and regulatory decisions, and asked the prime minister for a description of the government's inflation policy to Parliament and an explanation of why the forecasts for Latvian and Lithuanian banks are lower and why the differences in price increases among the Baltic states are large.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that Estonia's inflation comes mainly from wage growth and global commodity prices, accounting for two-thirds of inflation, with one-third arising from tax increases, of which half is the car registration fee, and although Estonia is not among the leaders in the EU, inflation remains a concern.
Esimees Lauri Hussar
AI Summary
The chair thanks and gives Urmas Reinsalu the opportunity to ask a clarifying question.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu criticized the government's inflation policy, noting that regulatory steps increase inflation, and he posed three specific questions: in which European Union country is inflation expected to be over 6%, why is inflation in Latvia and Lithuania forecast to be half as high, and what is the government's anti-inflation policy, adding emphasis on labor productivity and the minimum wage.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that the main driver of inflation is wage growth, and to stimulate the economy the government plans to cut public spending, not cut pensions, and implement tax reforms — abolish corporate profit tax and raise the tax-free minimum — so that people have more money and inflation would fall in the coming years.
Esimees Lauri Hussar
AI Summary
The chair thanks and asks Riina Solman to present a clarifying question.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman highlights the problem of hidden poverty and peripheralization, criticizes the rise in taxes and food prices (about 7%), and asks for concrete solutions that would keep peripheral areas viable and slow down the internal migration of people to Tallinn.
Esimees Lauri Hussar
AI Summary
He presents a petition to the Minister.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that although there are not yet precise details about the 2024 data, the level of relative poverty in 2023 has fallen, and the state plans by 2026 to abolish the income tax obligation from the first euro and to raise the tax-free minimum to 700 euros, which will increase people's incomes and help reduce poverty.
Esimees Lauri Hussar
AI Summary
The chair thanks and today closes the consideration of the third question, and before moving on to the fourth question asks Urmas Reinsalu to speak on the procedure for conducting the session.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu spoke kindly, but somewhat uneasy, that although he had been given, at the level of the Riigikogu leadership, a thorough data-based briefing with baseline data, he did not receive from the government a concrete inflation policy or an explanation of why Estonia's inflation is forecast to be higher than Latvia's and Lithuania's, and he asked what the government's inflation-fighting concept is and what he should do next.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar said that a colleague’s very thorough question was welcome, and the inflation-related discussion was substantive and well prepared, and the answers were heard, and the debate at the Riigikogu information hour will continue with opportunities to submit parliamentary inquiries and written questions.