Economy
Session: 15th Riigikogu, 5th session, information briefing
Date: 2025-06-18 15:40
Participating Politicians:
Total Speeches: 10
Membership: 15
Agenda Duration: 13m
AI Summaries: 10/10 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The fourth question addressed economics and the strengthening of Estonia's competitiveness to Prime Minister Kaja Kallas. Member of the Riigikogu Arvo Aller posed the question of how and whether Estonia can learn from the examples of Latvia and Lithuania, and what actions the Estonian state is taking to improve competitiveness. A critical tone was voiced regarding the tax system and the cost of living, and reference was made to an international competitiveness ranking where Estonia is in 33rd place, within the context of which it was investigated what steps are necessary for further progress. Then attention was turned to tax systems and the state’s budgetary policy: inflation is mainly influenced by wage increases and the rise in raw material prices, and the state presented plans for cost-cutting and changes to the tax system.
In the second part, specific measures were discussed: reducing the tax burden, important changes for entrepreneurship (abolishing corporate income tax, raising the tax-free threshold to 700 euros starting in 2026), simplifying bureaucracy, and temporarily postponing environmental requirements. Reference was also made to collaboration with Estonia's top entrepreneurs, and how the decisions made and steps taken should give a new impetus to the Estonian economy and improve the country’s overall competitiveness. Ultimately, emphasis was placed on the need to continue the discussion and follow the measures presented in the public sphere, but no formal decisions were confirmed at this session.
Decisions Made 1
Decisions were not made.
Esimees Lauri Hussar
AI Summary
Arvo Aller is asking the Riigikogu's fourth question to Prime Minister Kristen Michal concerning the economy.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
According to Arvo Aller, the rise in VAT and the increase in the tax-free minimum will increase people’s financial burden. He asks what steps the Estonian state is taking to improve competitiveness, especially since Latvia and Lithuania have improved their positions in this comparison while Estonia has stalled.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal stated that inflation is primarily driven by wage increases and commodity prices. The government plans to curb inflation over three years by cutting public sector spending by 1.4 billion euros—roughly 10% (excluding teachers, police officers, the Defence Forces, and pensions). Furthermore, in cooperation with top business leaders, the government is working on over 200 measures to improve the business environment, ensuring that inflation drops next year.
Esimees Lauri Hussar
AI Summary
The Chairman thanks [the previous speaker] and invites Arvo Aller to ask his clarifying question.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller criticizes the Reform Party's idea of stagnation, calls for learning from Lithuania’s examples, and emphasizes the practicality of hiring the unemployed. He also asks what steps the state must take for Estonia to become the Baltic flagship in terms of competitiveness and welfare.
Peaminister Kristen Michal
AI Summary
The government is focusing on boosting optimism and enhancing the competitiveness of the Estonian economy by reducing the tax burden (raising the income tax-free threshold to 700 euros and abolishing the corporate profit tax) and bureaucracy, and by promoting flexible employment and the simplification of environmental requirements, so that people have more money left over and the economy grows.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the assembly and announces that colleague Mart Helme will ask a follow-up question.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme inquired how the government intends to guarantee the food security of both Estonian residents and the evacuees under the terms of the evacuation agreement, and whether there are plans to quickly ramp up food production and ease restrictions on pig farming, cattle rearing, and poultry keeping in individual households.
Peaminister Kristen Michal
AI Summary
The Prime Minister confirmed that Estonia intends to lift restrictions, emphasized cooperation between neighboring countries and readiness to face risks, and highlighted the possible expansion of international cooperation on evacuation plans into the Nordic countries. He also called for the submission of good proposals, which would be accepted.
Esimees Lauri Hussar
AI Summary
The address conveys deep gratitude and announces the conclusion of the consideration of the fourth item.