Burden on the economy
Session: 15th Riigikogu, 5th sitting, information briefing.
Date: 2025-05-21 15:16
Participating Politicians:
Total Speeches: 11
Membership: 15
Agenda Duration: 15m
AI Summaries: 11/11 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu discussion focused on the impact of the economic burden on entrepreneurship and society in the context of next year. The primary aim of the questions was to assess the government's actions regarding the size of expenses related to taxation, charges, and services, and their impact on already uneven inflation. In addition, waste circulation reform, the establishment of electricity charges, and the dynamics of negotiations at the European Union level regarding ETS2 (Emissions Trading System 2) and its impact on fuel and energy prices were discussed, as parliament has been given a mandate to postpone or annul ETS2. Questions also intensified regarding income tax benefits and the long-term, persistent nature of the tax burden.
In the second part, clarifying and expanding questions about ETS2 were raised, and attention was also drawn to the burdens related to waste reform and energy charges. A reasoned claim was made that the government's promises and previous decisions have caused a crisis of confidence, and the burdens may deviate from realistically well-considered and predictable frameworks if tax benefits and the distribution of income are discussed in parallel. Finally, it became clear that parliament is more strongly oriented towards postponing or annulling ETS2 and what impact these steps may have in both the short and long term.
Decisions Made 1
No decisions were made in this session; the discussion will continue, and further work on future draft laws and collaborations is to be done in the Riigikogu.
Most Active Speaker
The most active speaker at the session was Urmas Reinsalu (Isamaa), who raised several key questions and clarifications. He belongs to the right-wing political spectrum and, as a member of the Riigikogu, has focused on economic policy and ensuring harmony between policy measures and economic goals.
Esimees Lauri Hussar
AI Summary
Riigikogu member Urmas Reinsalu is submitting his second question to Prime Minister Kristen Michal, and the topic is the burden on the economy.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu told the Prime Minister that the government's tax increases, fees, and additional administrative costs are burdening the Estonian economy and its people by over a billion euros, including the administrative burden of the waste reform set to take effect in 2026, amounting to up to 75 million euros, and the electricity fee coming into force starting in 2026. He then asked what the scale of the impact of these measures will be on businesses and society next year, and why the parliamentary mandate to cancel or postpone ETS2 at the European Union level has not been respected.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offers his thanks and makes a request to Mr. Prime Minister.
Peaminister Kristen Michal
AI Summary
The primary cause of inflation is wage growth, and the government plans to respond by cutting public sector costs by 1.4 billion euros over three years. This response also includes implementing tax changes designed to put more money directly into people’s hands (a tax-free minimum of 700 euros, 776 euros for pensioners, and approximately 1,500 euros for the average wage earner), as well as soliciting practical proposals for further spending cuts.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offers his thanks and invites Urmas Reinsalu to pose a clarifying question.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu accuses the government of pursuing deceitful policies, highlighting a crisis of trust and a decline in societal efficiency, and questions how long such a policy will continue in Estonia, noting that his submitted questions regarding the progress of ETS2 negotiations and the impact of the burdens have been left unanswered.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal stated that cuts totaling approximately 1.4 billion euros are planned for the 2025–2028 period, and overall budget growth will be lower than economic growth. Defense and social expenditures will see significant increases, while the growth of the remaining budget will be modest. Additionally, a debate is ongoing to reduce the impact of ETS2, the primary goal of which is its postponement or cancellation.
Esimees Lauri Hussar
AI Summary
The Chairman thanked [the previous speaker/the assembly] and announced that the follow-up question would be asked by colleague Aivar Kokk.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk criticized the government, stating that although 200 euros is being promised back to large families as an income tax benefit, nearly two billion euros is being taken from the people. He pointed out that the tax burden will increase over the next three years, and temporary taxes are set to become permanent. VAT and income tax have already risen from 20% to 24%, and further increases in taxes and burdens are expected over the next two years before the elections.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal stated that the waste reform must be sensible and that the cost for those who sort waste must not increase. At the same time, he promised a tax reform designed to boost people's incomes (raising the income tax-free minimum to 700 euros, implementing a 24% income tax rate in 2026), eliminating income taxation starting from the first euro, and abolishing the profit tax, which he believes will stimulate the economy.
Esimees Lauri Hussar
AI Summary
Many thanks to everyone; today we are concluding the discussion of the second matter.