Debate on the matter of national importance initiated by the Isamaa faction, titled "Estonia in Economic Recession. What is to be done?"
Session: 15th Riigikogu, 3rd sitting, plenary session
Date: 2024-02-15 12:02
Participating Politicians:
Total Speeches: 166
Membership: 15
Agenda Duration: 3h 57m
AI Summaries: 166/166 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu debated a matter of national importance initiated by the Isamaa faction, titled "In Estonian Economic Recession. What to Do?". Three speakers presented during the discussion: Urmas Reinsalu, Chairman of Isamaa; Sirje Potisepp, Head of the Estonian Food Industry Association; and Peeter Raudsepp, Director of the Estonian Institute of Economic Research. All three provided an overview of the poor state of the Estonian economy, which has persisted for the eighth consecutive quarter.
The main problems that emerged were high energy prices, low confidence in the government's economic policy, insufficient domestic and foreign demand, and a decline in competitiveness. Among the speakers, Reinsalu accused the government of deepening the economic problems through tax hikes and misguided policies. Potisepp highlighted the difficulties facing the food industry and called for the abandonment of indirect taxes. Raudsepp explained that the current crisis differs from previous ones and that its causes are political, not economic.
Decisions Made 1
No decisions were adopted during the discussion, as it was an informative debate. The only procedural decision was to extend the sitting until 2 PM, or until the agenda item was exhausted, a measure which 29 members of the Riigikogu voted in favor of.
Most Active Speaker
The most active speaker was Urmas Reinsalu (chairman of Isamaa), who delivered the main address and fielded the most questions. He represented a conservative left-leaning economic policy stance, criticizing the government’s tax hikes and calling for reduced bureaucracy and more business-friendly policies.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi introduces the national issue initiated by Isamaa, titled "In Estonian Economic Decline. What is to be done?", detailing the procedure for its handling and the flow of the agenda item, including presentations, questions and answers, debates, and the absence of a decision, as well as the potential extension of the sitting until 2 p.m. if necessary, and invites Urmas Reinsalu to the Riigikogu podium.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
The leader of Isamaa, Urmas Reinsalu, notes that Estonia is experiencing economic stagnation and the government must act immediately: tax hikes must be abandoned, bureaucracy must be cut, a realistic finance and energy plan must be implemented, and a broad-based economic growth pact must be concluded in order to restore the confidence of businesses and consumers and restart economic growth.
Aseesimees Jüri Ratas
AI Summary
The speaker was thanked, the audience has questions, and Tanel Kiik was asked to respond.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik is asking Urmas Reinsalu if he now feels that the Social Democrats and the Centre Party, who advocated for left-wing policies, were correct in 2009, or if raising the VAT, which Isamaa supported, was the right move after all.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu claimed that the government is copying crisis solutions, increasing indirect taxes, and planning a climate law to boost state budget revenues, stressing that economic competitiveness is the primary objective right now, and this is what distinguishes the policies of Isamaa from those of the ruling coalition. He further added that Estonia is the country with the highest indirect taxes in Europe, and the price increase in January was 4.7%.
Aseesimees Jüri Ratas
AI Summary
In the address, Kersti Sarapuu is asked to take the floor.
Kersti Sarapuu
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kersti Sarapuu stated that the sharp fluctuation of energy prices and the deficit in regional energy security necessitate clear state action, guided by Isamaa's long-term energy security plan, which would guarantee dispatchable capacity and a competitive electricity price, along with a clear regulatory framework regarding Nord Pool and emissions trading for the country's industry and economy.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas invites Jaanus Karilaid to take the floor.
Jaanus Karilaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaanus Karilaid claims that the current government lacks a clear economic policy, and the Reform Party headquarters is advising them to pretend and conceal failures, including tax hikes that could have been handled better.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
According to Urmas Reinsalu, the Reform Party’s management culture views governing the country as a marketing operation, where poor policy is glossed over with talking points. He added that economic problems are objective, and it is the government’s duty to alleviate them, not exacerbate them, because currently there is no adequate outlook, and sugarcoating the situation does not help the economy or businesses.
Aseesimees Jüri Ratas
AI Summary
The Deputy Speaker asks for Jürgen Ligi to be called upon to speak.
Jürgen Ligi
AI Summary
Jürgen Ligi labels the speaker on economic issues a megalomaniac, accusing him of lacking knowledge and constantly reiterating government work plans. He then asks whether the reasons for the current economic state truly stem only from the party and the government, or if other causes have also been identified.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Isamaa representative Urmas Reinsalu emphasized that Isamaa is the defender of the Estonian economy and entrepreneurship, called on the government to reduce bureaucracy and present concrete, quickly implementable economic decisions – not an increase in the tax burden – and cited as objective reasons the decline in demand, the volatility of interest rates, the energy crisis, and the impact of the Russia-Ukraine war.
Aseesimees Jüri Ratas
AI Summary
The Deputy Speaker invites Jaak Aab to take the floor.
AI Summary
Jaak Aab recalls that the crazy surge in energy prices led to inflation, and although the government reacted quickly during the coronavirus crisis and the impact on businesses was smaller, there was no concrete plan during the major price increase; the electricity market reform, or the universal service, traps people and costs more, because the market-linked package is always cheaper.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu said that as a step taken by the previous government, the overages in gas and electricity prices were compensated using the universal service, and the dispute related to Enefit shows the need for a dual-system solution. This solution would involve the universal service being applied when the price is lower than the exchange price, and the exchange price being applied accordingly, but Isamaa’s proposal did not find parliamentary support.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas invites Urmas Kruuse to take the floor.
Urmas Kruuse
Profiling Eesti Reformierakonna fraktsioonAI Summary
Urmas Kruuse pointed out during the session that before the Russian aggression in Ukraine, the competitiveness of many businesses was linked to cheap Russian raw materials, but now that the structure has changed, competitiveness in export markets has declined, and he asked what should be said to those whose business model relied on cheap Russian raw materials.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stated that the East-West economic corridor will remain in place and that adaptation is necessary, emphasizing the need for a transparent assessment of energy and green transition measures for Estonian industry. Furthermore, he called for a moratorium on the climate law, suggesting that entrepreneurs be given a clear cost assessment and that a minimum threshold be established to prevent additional burdens and preserve the economy's competitiveness.
Aseesimees Jüri Ratas
AI Summary
Deputy Chairman Jüri Ratas asked Mart Maastik to come and speak.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik criticizes the government for failing to listen to entrepreneurs and making decisions unilaterally, and asks what primary step Prime Minister Kaja Kallas should take to save the Estonian economy.
Aseesimees Jüri Ratas
AI Summary
The Deputy Speaker apologized to the rapporteur and gave Jürgen Ligi the opportunity to raise a point of order.
Jürgen Ligi
AI Summary
Jürgen Ligi requests a procedural correction to remove the false claim made about his education, emphasizing that according to his diploma, he is primarily an economist, and asks the Chair whether this can be rectified or if his point of order is appropriate at this time.
Aseesimees Jüri Ratas
AI Summary
Ratas offers his thanks and notes that although the internal rules and procedures do not permit it, you, as an experienced politician, have immediately clarified this matter yourself. He then praises the rapporteur and asks for a response.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stated that the government lacks a clear economic narrative and public trust, and must acknowledge the error of its current conduct and implement the solutions proposed by Isamaa to inspire society; if this is not achieved, the head of government must resign.
Aseesimees Jüri Ratas
AI Summary
A request is made to Tanel Kiik in the speech.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik repeats his question about the 2009 VAT increase, asking whether the Reform Party and Isamaa were on the right side, or the Centre Party and the social democrats, who were against it.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stated that adopting the euro was a rational choice during the financial crisis back then, but the current crisis is very different, and solutions must be tailored to the new circumstances. He added that sustainability depends on the size and growth of the national economy, and according to him, tax increases are not a sustainable solution.
Aseesimees Jüri Ratas
AI Summary
This is a brief invitation to call Riina Solman to the stage.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman claims that the motor vehicle tax bill is unfair and exacerbates regional inequality, and that the minister's rhetoric is misguided. She accuses the Reform Party coalition and asks what the current concerns of business organizations are regarding the present situation.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stated that the main message from businesses is: leave us be and restore confidence in the government's economic policy, because uncertainty and unpredictability threaten the region, and we must establish confidence for investors and the Estonian economy.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas calls upon Jaak Aab to speak.
AI Summary
He asks why, upon taking office in 2022, the government failed to take steps to alleviate energy prices or implement measures similar to those used during the COVID crisis. This occurred despite the opposition proposing reductions in energy taxes and excise duties, and high energy prices ultimately damaging the competitiveness of Estonian businesses and leading to an economic recession.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stated that inflation since the beginning of 2021 has been nearly 30%, and due to energy prices, money has lost its value. Although the universal service was a political compromise, his view is that the state should compensate producers for the entire cost of CO2 emissions, and the burden of CO2 emissions trading must be predictable and fixed. This position was supported by the government and needs to be brought back to the table in the future.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas calls upon Urmas Kruuse to speak.
Urmas Kruuse
Profiling Eesti Reformierakonna fraktsioonAI Summary
Urmas Kruuse emphasizes that entrepreneurs are expecting clear targets for the climate law and are involved in working groups because they monitor their environmental footprint to remain part of global trade and supply chains. He then asks whether it is sensible to impose a moratorium or if the environmental issue should simply be ignored in this context.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu protested against additional regulations and taxes being introduced in the name of the green transition before any substantive analysis, emphasizing that the market economy must operate with freedom of choice.
Aseesimees Jüri Ratas
AI Summary
Vice-Chairman Jüri Ratas announced that the rapporteur had one further question, and called upon Priit Sibul to ask that question.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul asks what the most reasonable short-term and long-term solutions are to ensure electricity prices are competitive for both industry and private consumers.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu said that it is necessary to create an investment-secure environment and ensure the development of new dispatchable capacities so that electricity is available and the price is competitive, taking into account the impact of the Baltic pricing area, as well as the regulatory and compensation mechanisms, because there will be no sustainable solution available after 2027, and otherwise, a serious energy crisis looms.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas thanked the rapporteur and those who provided answers, noting that the fixed time allocated for questions and answers was 40 minutes, but it had actually concluded 2 minutes and 47 seconds earlier. He then invited Sirje Potisepp, the Director of the Estonian Food Industry Association, to the podium.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
He respectfully greets the Speaker and the members of the Riigikogu.
Aseesimees Jüri Ratas
AI Summary
The speech focuses on welcoming the Speaker of the Riigikogu.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
Sirje Potisepp, the head of the Estonian Food Industry Association, stated that consumer confidence is low. People are saving money and opting for cheaper products sold at promotional prices. Although the food industry's turnover is growing, volumes are declining in both the domestic and export markets. The rise in VAT has impacted prices more significantly than in the past, and the primary concern remains energy prices and availability, particularly regarding electricity.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas clarified that the presentation would last up to 20 minutes, followed by a debate and a question-and-answer session lasting up to 40 minutes.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
The report emphasizes that the competitiveness of the food industry has declined due to rising energy costs, the tax burden, and intense pressure from major retail chains. Consequently, the government must provide a clear, realistic short-term and long-term plan covering investment grants, energy price relief measures, and export subsidies to guarantee the security of food supply and the industry's sustainable growth.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas thanked the rapporteur, noting that there were many questions, and asked Urmas Kruuse to begin.
Urmas Kruuse
Profiling Eesti Reformierakonna fraktsioonAI Summary
Urmas Kruuse asks why the share of Estonian goods on store shelves is about 59%, and whether the reasons lie in a lack of assortment, volume capacity, or some other factor.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
According to the presenter, the rapid increase in Estonian food prices is due to the structure of supply chain costs and the low proportion of Estonian products in the selection offered by foreign-owned retail chains, which limits the consumer's ability to choose domestically produced goods. Although companies are improving their product range, the main issue remains the price and supply chain expenses, coupled with the 22% VAT, which sometimes makes Estonian food more expensive compared to price levels in Brussels.
Aseesimees Jüri Ratas
AI Summary
This is a short request to Aivar Kokk.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk accuses the state of making foolish decisions regarding the economy and gas, stating that the price of gas has increased due to the entire supply chain, and the rise in input prices has not been compensated, a point illustrated by the Reform Party's recent claim concerning the LNG terminal.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
The director of the Estonian Food Industry Association states that the availability and affordability of energy are extremely important. While the state is working towards phasing out gas, the food sector will continue to need it, meaning decisions must be made that are reflected in the daily operations of companies.
Aseesimees Jüri Ratas
AI Summary
Deputy Chairman Jüri Ratas asked Kristina Šmigun-Vähi to come.
Kristina Šmigun-Vähi
Profiling Eesti Reformierakonna fraktsioonAI Summary
He/She asked a question about the green transition and inquired how Estonian industrial companies view it—whether they see it as an opportunity or rather an obstacle.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
Currently, there is no clear timeline or plan for the green transition, which is why businesses require concrete direction from the state. They need to know what the costs will be for them and who will cover those expenses, as well as a clear overview of investments, the schedule, and solutions regarding packaging and competition.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas invites Urve Tiidus to the stage.
Urve Tiidus
Profiling Eesti Reformierakonna fraktsioonAI Summary
Urve Tiidus, at the meeting of the European Food Federation held in Brussels, asked whether administrative burden had been discussed and whether Estonia's concerns were different from or similar to those of other countries.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
Sirje Potisepp said that the Estonian food industry shares similar concerns with other European Union countries regarding competitiveness, the availability of capital, and rising food prices. However, in Estonia, prices have risen very quickly and noticeably—by about 50% over the last two years—and this stems from the growth of production and input costs, not from corporate greed.
Aseesimees Jüri Ratas
AI Summary
Deputy Chairman Jüri Ratas invited Varro Vooglaid to the stage.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid thanks and largely agrees, but notes that as long as the current government is in office, he did not believe that any of those six points would be taken into account—that energy costs would not rise, that fiscal and tax policy would not harm competitiveness, that the administrative burden would not grow, and that overregulation would not increase—and asks whether anything important from this has actually been taken into account during the last nine months.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
The food industry went through a very tough period last winter, as the rapid rise in production costs prevented final consumer prices from increasing. However, the situation is now stabilizing, and companies are working hard to manage. Meanwhile, there are concerns about the cumulative impact of the sugar tax and the waste law, and stakeholders stress that they do not support the introduction of additional indirect taxes, because every single cent counts.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme stresses that in a post-democratic state where the security services are changing governments, it must be stated clearly and loudly that there are parties and coalitions that make decisions favorable to entrepreneurs (the 2019 and 2020 tax cuts), and governments that harm them. This distinction is crucial because without it, voters cannot understand whom they should support.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas called Martin Helme to speak.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
The main takeaway is that consumers are not currently prepared to handle extra burdens. And while a tax package might eventually be implemented, it raises concerns because the food industries are directly tied to consumers' wallets.
Aseesimees Jüri Ratas
AI Summary
Deputy Chairman Jüri Ratas addresses Mart Helme and asks him.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme stated that a large portion of the bills is based on European Union directives and requirements, and according to him, the only solution for reducing the administrative burden is leaving the European Union, because these directives are mandatory and must be adopted.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas addresses the questioner, stresses that the time has come, and asks the presenter to respond.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
The significant administrative burden imposed by EU regulations, coupled with political considerations that arise ahead of elections, necessitates close cooperation between Estonian advocates and the new Members of the European Parliament to prevent burdensome business regulations, as the SUP directive demonstrated previously.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas invites Urmas Kruuse to the stage.
Urmas Kruuse
Profiling Eesti Reformierakonna fraktsioonAI Summary
Urmas Kruuse pointed out that although the government has supported businesses, investments have been made, and energy security has been ensured, the main reason for the sluggishness in food industry exports is the impact of energy prices.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
Businesses are extremely cautious when making investments, and while investment grants have been accessible, large companies were unable to utilize these measures. The primary concerns remain product pricing and how energy and tax policies affect the competitiveness of Estonian manufacturing.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas invites Arvo Aller to the stage.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller thanked the chair of the session and the rapporteur and stated that he wants the six points of expectations presented to the state to resonate with the coalition, noting simultaneously that indirect taxes should not be applied. He referenced the excise duty hikes starting in May, the car tax planned for next year, and the VAT increase, which is ultimately paid by the final consumer. As a solution, he proposed lowering the VAT on foodstuffs so that food prices would be more favorable and consumption would rise.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
The Food Industry Association is currently refraining from taking a position on the lowering or raising of VAT. Instead, it emphasizes the need for a reasonable analysis and an official assessment regarding the impact on the state budget and the administrative burden, given that decisions cannot be made based on emotions.
Aseesimees Jüri Ratas
AI Summary
Deputy Chairman Jüri Ratas called Mart Maastik to the stage.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik said that in Latvia, the VAT on foodstuffs was lowered from 21% to 5%, and prices in stores allegedly dropped by 12–14%. At the same time, he asked that others not talk all at once so that he could concentrate.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas asks his colleagues to respect the questioner and then courteously addresses the questioner himself.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik notes that people's purchasing power is falling because of taxes, and asks for data regarding the extent to which grocery sales have decreased in Southern Estonia near the Latvian border after Latvia lowered the VAT on food products.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
He noted that the impact of Latvia reducing its VAT on food products is ambiguous. This is because one study indicated a price drop, while another showed no change, and simultaneously, state budget revenue decreased. Given the current situation, it is difficult to predict which food prices will increase or decrease, making it hard to take any fundamental decisions.
Aseesimees Jüri Ratas
AI Summary
This is just a short request addressed to Anti Allas.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas emphasized that the state has been very proactive in cutting regulations and is ready to approve proposals from businesses, but at the same time he asked why tax increases do not boost competition and what should be done to make competition function better.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
Sirje Potisepp said that competition is indeed functioning, but retail markups have grown noticeably (from 40% to about 50% or more). And although we are in a free market, we do not want the sector to remain a price hiker, because the study by the Institute of Economic Research provides the necessary material for understanding how the market functions.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas invites Jürgen Ligi to take the floor.
Jürgen Ligi
AI Summary
Jürgen Ligi criticized the opposition's insufficient economic analysis and their failure to present figures, demanding that the discussion focus instead on changes in consumer purchasing power, including the impact of indirect taxes, in addition to the effects of prices and energy costs.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
He emphasizes that he is not affiliated with a political party, acknowledges the decline in purchasing power despite rising incomes, and states that Peeter Raudsepp will provide the exact answer regarding the level of purchasing power.
Esimees Lauri Hussar
AI Summary
The Chairman called Rene Kokk to speak.
AI Summary
Rene Kokk asks whether Estonian loan conditions and the availability of loans are better or worse than those of its neighbors, referencing the revenue generated by taxing the extraordinary profits of Lithuanian banks and the rise of Euribor, and he also asks whether the availability of loans, as part of the green transition, will not increasingly face restrictions.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
Support measures for businesses in Estonia are often unavailable to large enterprises, a situation resulting from both EU requirements and internal policy decisions. Regarding investment grants, Latvia and Lithuania are cited as models because larger companies there gain access, which creates unequal competition. Bank loans are generally accessible but necessitate a clear business plan, and capital availability can be an issue for smaller companies. The Food Association represents about 85% of the market, and while larger and medium-sized enterprises can secure additional capital with a solid plan, all parties are carefully analyzing the financial burdens and remain cautious.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks Priit Sibul to come forward and speak.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul asked what is currently most crucial for the competitiveness of the food industry—the impact of taxes and energy prices, or adherence to climate and green goals—and requested that these issues be prioritized, taking into account the 2040 objectives and the deadline at the end of 2024.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
Energy costs and tax policy have a very strong impact on our businesses and consumers, and determine purchasing power, since people have to cover three basic necessities—food and beverages, transport, and housing expenses—and statistics show that one-third of the Estonian population lives on the brink of poverty.
Esimees Lauri Hussar
AI Summary
The Chairman thanked the presenter and Mrs. Potisepp, declared the question and answer period closed, and invited the Director of the Estonian Institute of Economic Research, Peeter Raudsepp, to the Riigikogu rostrum; the presentation is limited to 20 minutes.
Eesti Toiduainetööstuse Liidu juhataja Sirje Potisepp
AI Summary
In conclusion, please ensure that every decision considers how it helps Estonian businesses and the economy, rather than dragging us even deeper into the mire we are already in.
Esimees Lauri Hussar
AI Summary
The Chairman requests that Peeter Raudsepp, Director of the Estonian Institute of Economic Research, be invited to speak.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Raudsepp stated that Estonia is currently in a deep and long-term crisis, noting that the primary issues are insufficient demand, a decline in competitiveness, an unfavorable foreign investment environment, and growing distrust toward the government’s economic policy. He added that the solution lies in the consistent innovation and creation of added value by businesses, the reduction of bureaucracy, and a clear and stable national policy that provides certainty and boosts competitiveness.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that the debate had not concluded by 1 PM. Therefore, it was requested to extend the sitting until the agenda item is exhausted, up to 2 PM, and members were asked to vote in favor of this proposal.
Esimees Lauri Hussar
AI Summary
The proposal was supported by 29 members of the Riigikogu; there were no opponents or abstentions. The sitting was extended until the agenda item was exhausted, followed by a round of questions, with Jevgeni Ossinovski being the first questioner.
Jevgeni Ossinovski
AI Summary
Based on the latest study, Jevgeni Ossinovski raises the question of whether the context of food prices and retail markups indicates excessive competition, marked by aggressive market share capture and overinvestment, and whether the state should intervene to resolve the situation.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp said that under current conditions, retailers must increase their profit margins, either by raising prices or sourcing cheaper goods, because costs are remaining flat or increasing, and competition is increasingly centered on imported food products, while consumer price sensitivity is rising.
Jürgen Ligi
AI Summary
Jürgen Ligi noted that although Urmas Reinsalu quotes him constantly, this expert is focused on the economic climate, encompassing trust and confidence, as well as the impact of green, monetary, and geopolitical policies. These are emotional topics, often tied to the popularity of political parties and the government, and they are things the government actually has no control over.
Esimees Lauri Hussar
AI Summary
The Chairman invites Jürgen Ligi to take the floor.
Esimees Lauri Hussar
AI Summary
This is a simple prompt that now is your time to act.
Jürgen Ligi
AI Summary
Jürgen Ligi asserts that green policy represents a genuine economic opportunity for businesses, that monetary policy is not determined by the government, and that geopolitics is naturally the main problem.
Esimees Lauri Hussar
AI Summary
The Chairman announces that Jürgen Ligi's time has come and he may now take the floor.
Jürgen Ligi
AI Summary
Jürgen Ligi asks whether you feel an obligation to connect your undoubtedly important perspective with broader themes.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar greets colleague Jürgen Ligi.
Jürgen Ligi
AI Summary
Jürgen Ligi notes that macro analyses are conducted by other institutions.
Esimees Lauri Hussar
AI Summary
The Chair emphasized adherence to the time limits, stating that questions are allotted one minute each, and if anyone exceeds that time, they will not be able to ask any more questions.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp emphasized that the economy is emotional, and that business cycle surveys provide both current and future perspectives. The open dissemination of these results is important, a fact demonstrated by the quoting of the leader of the most popular party.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Andres Sutt to the stage.
Andres Sutt
AI Summary
Andres Sutt pointed out that employment is at a 31-year record high and the labor market is very strong. Foreign investments surpassed 2021 levels, GDP at the end of last year remained stable, and since April, prices have only risen by 1.45%. Companies are increasingly investing in technology and reducing their environmental footprint, and he posed a question to the Institute of Economic Research regarding how prepared companies are for these investments.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp said that currently there are no plans to conduct studies concerning green topics or environmental research, and the labor market is simultaneously showing growth in both employment and unemployment, which is mainly caused by Ukrainian immigration; foreign investments have recovered, and the recent record is a good achievement.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar called Priit Sibul to speak.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul thanked the presenter and highlighted that the next economic growth cycle would likely be spearheaded primarily by entrepreneurs. He then asked what indicator or sector could drive this growth in the near term, considering the backdrop of an unstable tax environment and higher energy costs.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp notes that in the changed economic environment, companies must adapt and produce goods and services with higher added value to maintain competitiveness, even during times of more expensive inputs. He adds that although the cycles of the last crisis were clearer, today’s economic cycle is disrupted, and the lines are harder to distinguish.
Esimees Lauri Hussar
AI Summary
The Chairman asks Aivar Kokk to come forward.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk thanked the presenters and pointed out the upcoming tax increases (VAT in January, fuel excise duty and income tax in May, and the adoption of the car tax law), and asked how these would impact an economy that has already been operating in the red for the eighth consecutive quarter.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp emphasizes that the conditions for today's downturn lie elsewhere, and the issue is how to exit this situation. Furthermore, theoretically, tax increases do not accelerate economic growth; rather, they tend to hinder it.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar addresses Urmas Kruuse.
Urmas Kruuse
Profiling Eesti Reformierakonna fraktsioonAI Summary
Urmas Kruuse noted that we are in a wonderful position and have a lot of work ahead of us, but he warns that emotional analyses and social media headlines could diminish rational thinking in the future, and he questions whether this is a trend or simply a reflection of the current moment.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp, the director of the Institute of Economic Research, stated that he does not engage with social media platforms or offer emotional commentary on unemployment figures, given that the data originates from official sources and he sees no reason to interpret it emotionally.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Jevgeni Ossinovski to speak.
Jevgeni Ossinovski
AI Summary
Jevgeni Ossinovski emphasizes that in the retail sector, the choices boil down to either price hikes or pressure on purchasing prices. However, he highlights a third option: cost savings—specifically citing the small, box-like stores built over the last few decades and 24/7 opening hours in areas where the consumer base has shrunk. Based on research, he then questions whether the current markup reflects the parties involved simply seizing market share at the expense of the rest of us.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp stated that the primary objective of the study is to monitor the supply chain and the proportion of goods originating in Estonia. He added that this is a broader issue affecting all areas of business, where prices adjust in response to rising costs as part of the market economy process.
Esimees Lauri Hussar
AI Summary
The Chairman offers his thanks and turns to Henn Põlluaas with a request.
Henn Põlluaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Henn Põlluaas thanks [the speaker] for the substantive presentation and excellent answers, and requests a brief explanation of how the tax increases have impacted inflation, price hikes, and the economy.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
A study by the Institute of Economic Research showed that food prices rose rapidly in the first half of last year, stabilized in the second half, and then in January, a price increase emerged that exceeded the rise resulting from the VAT rate increase—it actually started kicking in around December.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar calls upon Priit Sibul.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul highlighted that the term "profit greed" has begun circulating among bank analysts—a concept that has been widely used and apparently entered our common parlance via the IMF. He then asked whether the Institute of Economic Research had taken notice of this, where these 'profit-greedy' actors operate, or if it was merely an unfortunate case of looking for problems.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
He explains from a rational standpoint why prices are rising, how business volumes and costs are changing, and what steps are taken in such a situation so that market participants, including retailers, can maintain profitability. He also stresses that the Institute of Economic Research does not use and does not wish to use the word “profiteering.”
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Jürgen Ligi to take the floor.
Jürgen Ligi
AI Summary
Jürgen Ligi asserts that the economy is emotional, and that the government's unpopularity and the general mood influence it, and he calls on the government to use more rational and fact-based data to explain these sentiments.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp says that 20 experts from various sectors participate in the business cycle survey, and the study also utilizes data from Statistics Estonia, the Unemployment Insurance Fund, and the Bank of Estonia. He emphasizes that economic topics were previously difficult, but they have been discussed more since the summer, and before finding solutions, we must first determine the starting point—where we currently stand.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the assembly and invites Urmas Reinsalu to speak.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu criticizes Jürgen Ligi's interpretation, pointing out that according to the December barometer published by the Institute of Economic Research, the most significant problem is the decline in confidence in the government's economic policy, and he calls on experts to present a catalog of open hypotheses regarding the potential causes.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
He noted that although the plans are new, many elements are already familiar from previous drafts, and trust would be increased more by consistency and thorough analysis.
Esimees Lauri Hussar
AI Summary
The Chairman thanks [the previous speaker] and asks Urmas Reinsalu to take the floor.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu refers to the criticism of Riisalo's document and asks Mr. Raudsepp what the most acute decisions are in the immediate future, taking the economic situation into account, and which decisions the government should avoid.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Raudsepp emphasized that reducing companies' administrative costs and investing in innovation and research funding is essential for international competitiveness. However, the rationale behind taxes, especially the car tax, must be explained more effectively. If not, businesses could move their assets abroad, and the tax burden would fall exclusively on small producers.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the rapporteur, announced that there were no further questions, opened the debate, and reiterated the rules, explaining that statements could be made by members of the Riigikogu, as well as representatives of committees and factions, and announced that faction representatives would speak first, with the initial address coming from Jürgen Ligi on behalf of the Reform Party Faction.
Jürgen Ligi
AI Summary
Jürgen Ligi said that Isamaa is no longer the same, and the economy must not be run by a Party dictatorship. Instead, the government needs to keep public finances in order and deal honestly with tax policy, because production costs in Estonia have risen due to the war, energy prices, and the shrinking of export channels, and competitiveness actually depends on the economy, not party politics.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar requests three minutes of additional time.
Jürgen Ligi
AI Summary
Jürgen Ligi argues that the VAT is neutral for the economy, and domestic consumption is not significantly under pressure because employment remains strong and real wages and pensions are rising. The impact of Ukraine must be considered separately, but the biggest threat is the war and its effect on the economy, not the government’s unpopular choices or bureaucracy.
Esimees Lauri Hussar
AI Summary
It says it's your time to act.
Jürgen Ligi
AI Summary
Jürgen Ligi said the discussion veered into geopolitics, and today it actually went completely off the rails, which was probably Reinsalu’s objective.
Esimees Lauri Hussar
AI Summary
The Chairman offered thanks and confirmed that there was a request for a right of reply, granting two minutes.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu, speaking on behalf of Isamaa, claims that the current government is worsening the economy and creating uncertainty. He refutes the arguments concerning taxes and price hikes, pointing out that the 4.7% price increase in January was triggered by signals sent by the government. Furthermore, he notes that VAT revenue collection over an 11-month period is down by several hundred million euros, which underscores the necessity of boosting consumer and business confidence.
Esimees Lauri Hussar
AI Summary
The Chair thanks [the previous speaker] and calls upon Aivar Kokk to speak next, on behalf of the Isamaa Faction.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk accuses the government of being incapable of kickstarting the economy, citing examples such as delays in LNG ports and high-voltage power lines, rising energy costs, and the losses incurred from selling off railway wagons. He stresses that costs must be cut and that both entrepreneurship and the timber sector need better support.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks if you would like additional time.
Esimees Lauri Hussar
AI Summary
The speech is a request for three minutes of extra time.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
He discusses cost savings and provides an example: out of 150 million euros, 30 million goes to white-collar workers, and if 25% of them were sent home, the state would save over 300 million euros annually. Simultaneously, he criticizes the Reform Party’s plan as an income tax hump and warns that the state budget would lose billions. He also stresses the necessity of preserving jobs, considering energy prices, and sustainably utilizing existing energy sources, while also contemplating a nuclear power plant for the future.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks [the previous speaker] and gives Jürgen Ligi the opportunity to deliver a response speech.
Jürgen Ligi
AI Summary
Jürgen Ligi emphasizes that discussions about the economy must be based on the correct diagnosis, and we should focus on what can be achieved within the government's means, instead of merely assigning blame or fueling negative sentiment.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar introduced Martin Helme on behalf of the EKRE faction and requested three minutes of additional time.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme is accusing the Reform Party government of mishandling the 2021 energy crisis and criticizing their green transition plans, claiming that their increases in spending and taxes have triggered inflation and a budget crisis. He reminds listeners that EKRE, while in government, lowered taxes, which stimulated the economy, and asserts that only a national party in power can improve Estonia’s economy and the well-being of its people.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked his colleagues and announced that the initiator of the debate had proposed that the representatives of the factions speak first. He then invited Toomas Uibo to take the floor on behalf of the Eesti 200 faction, requesting three minutes of additional time.
Toomas Uibo
Profiling Eesti 200 fraktsioonAI Summary
Toomas Uibo emphasizes that Eesti 200 is proposing a practical, cooperation-focused economic policy. This policy includes a clear and predictable legal framework, minimal bureaucracy, securing a qualified workforce through education and migration policies, developing a technology- and science-intensive economy, utilizing targeted European Union investments, and implementing a sensible green transition. The ultimate goals are to boost business competitiveness, make Estonia the best country for entrepreneurs, and double the volume of the Estonian economy by 2035.
Esimees Lauri Hussar
AI Summary
The Chairman announced that Jevgeni Ossinovski would be taking the floor on behalf of the Social Democratic Party faction, and Ossinovski requested three minutes of additional time.
Jevgeni Ossinovski
AI Summary
Jevgeni Ossinovski stated that Estonia’s financial situation is poor and deteriorating, and it is necessary to balance fiscal and budgetary policy, continue investments in education and research and development, and quickly implement an ambitious energy plan for the transition to renewable energy in order to ensure affordable and secure electricity supply and boost economic competitiveness.
Esimees Lauri Hussar
AI Summary
The representative of the Centre Party faction, Vadim Belobrovtsev, requests three minutes of additional time.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Estonia has been in an economic recession for three years now, and the government lacks a clear vision. Consequently, the opposition, the Estonian Centre Party, is proposing solutions such as implementing a bank tax on highly profitable banks, slowing down the planned tax increases, boosting investments, and cutting the state apparatus, so that the economy can start growing again and there can be a clear plan for the future.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the colleague and announced that Priit Lomp would take the floor from the Riigikogu rostrum at the conclusion of the debate.
Priit Lomp
AI Summary
Priit Lomp emphasized that he is genuinely committed to speaking with entrepreneurs and representatives of professional associations, positioning himself as someone who is "not a classic politician." He called for a discussion on improving Estonia's competitiveness through energy policy, reducing bureaucracy, funding education and research and development (R&D), and strengthening the regional economy. This includes examining the role of local governments and promoting investments outside of Tallinn. He stressed that the messages conveyed by politicians and the information directed at foreign investors must be clear and explanatory, and that we should share proposals for good ideas and future solutions, rather than focusing solely on the negative aspects.
Esimees Lauri Hussar
AI Summary
The Chairman thanks his colleagues, closes today's negotiations and the discussion of the agenda item, and concludes the plenary session for the current working week. We will meet again next week.