Interpellation concerning the rise in the cost of living in Estonia (No. 599)
Session: 15th Riigikogu, 3rd session, plenary sitting
Date: 2024-03-04 18:10
Total Speeches: 67
Membership: 15
Agenda Duration: 1h 7m
AI Summaries: 67/67 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu debated an interpellation submitted by members of the Centre Party faction regarding the rise in the cost of living in Estonia. Lauri Laats, the representative of those submitting the inquiry, highlighted the direct impact of the government's tax policy (the rise in VAT and excise duties) on the Consumer Price Index, which has exceeded the rate projected by the Prime Minister. He emphasized that the price increases deepen absolute and relative poverty. The opposition demanded explanations as to why Estonia is leading Europe in terms of inflation and why socio-political measures, such as lowering the VAT on foodstuffs, are not being considered.
Prime Minister Kaja Kallas responded that the government does not set targets for the rise in the Consumer Price Index but instead works to curb inflation through fiscal policy. She stressed that the price increases are largely due to global factors (the war in Ukraine, the energy crisis) and highlighted positive economic indicators, such as wage growth that has outpaced inflation, and the historically high level of pension purchasing power. Kallas defended the tax hikes, explaining that they are necessary to cover national defense expenditures and that social policy must be carried out using collected taxes, not by lowering taxes, as the latter may not reach consumers.
Decisions Made 1
No decision was adopted during the discussion of the inquiry.
Most Active Speaker
The most active participant from the opposition was Mart Helme (EKRE), who posed pointed questions to the Prime Minister and delivered two emotional speeches during the debate. Helme accused the Prime Minister of lying and displaying a cynical attitude, and compared the positive statistics presented by the government to Soviet propaganda, claiming that Kaja Kallas is waging a full-scale economic war against the Estonian people. Helme represented the far-right opposition in the debate, criticizing the government's policies as the destruction of Estonian rural life and the nation.
Esimees Lauri Hussar
AI Summary
Under the second item on today's agenda, the interpellation concerning the rise in the cost of living, submitted by Riigikogu members Laatsi, Jevgrafov, Kovalenko-Kõlvart, Belobrovtsev, Tšaplõgin, and Korobeinik, will be presented. Riigikogu member Lauri Laatsi will introduce the query on behalf of the questioners.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Member of Parliament Lauri Laats states that the cost of living in Estonia has grown significantly, and the actual price increase exceeds the expected 1.6%. He highlights the rise in VAT and other taxes, along with growing poverty, and demands answers during the inquiry.
Esimees Lauri Hussar
AI Summary
The Speaker thanked the previous speaker and announced that Prime Minister Kaja Kallas must return to the Riigikogu rostrum to answer the interpellation.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas explains that the 2023 inflation was caused by the impact of global supply chain disruptions and the energy crisis. While wages and pensions grew in Estonia, the government is focusing on reducing poverty through social and fiscal policy, and the effect of tax changes on prices is limited.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offered his thanks and announced that the Madam Prime Minister still had several questions pending, and the first questioner is Anastassia Kovalenko-Kõlvart.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart accuses the government, stating that the debate over the bank tax sends a signal to vulnerable people: if things go badly, nobody cares, and if things go well, extra money is taken. She emphasizes the importance of the principles of legal certainty and the protection of legitimate expectation, and calls for decisions to be made that are truly in the interest of the people and improve their sense of security.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas stated that Estonia will endure and war will not come, and the well-being of the people is growing. She added that significant improvements have been made for vulnerable families: the minimum wage will rise by 13% in 2024, the tax-free minimum income is increasing, pensions are growing, support for elderly people living alone will reach 200 euros (we increased it by 74%), the subsistence level and subsistence benefit will be increased by 33%, family benefits have been raised (support for families with three to six children is 150 euros higher compared to January 2022, and support for families with seven or more children is 250 euros higher), maintenance allowance will increase to 100–200 euros, and needs-based study allowance has doubled.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar called Vadim Belobrovtsev to come forward.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Belobrovtsev argues that Estonia should lower the tax on foodstuffs compared to luxury goods, citing the experiences of Finland, Sweden, Germany, Latvia, Lithuania, and Poland. He adds that, based on simple logic, if these measures are permanent in those countries, they must be effective; otherwise, they would have been abolished long ago.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas stresses that reducing the VAT on groceries often fails to ensure lower prices and does not reach those in need. Furthermore, tax policy is not social policy—assistance must be provided through other means, as experience in countries where the tax rate is lower demonstrates that the benefit does not trickle down to the people.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Mart Helme to speak.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme is criticizing Kaja Kallas and the government, arguing that other countries lowering VAT are foolish, and that businesses will just slap that cost onto the final price. He also stresses that people's lives are getting progressively worse and nobody believes what they are saying anymore.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas called for a greater focus on positive developments and highlighted that wages and pensions are rising in real terms, the private sector is continuously creating more jobs, and energy prices are falling, all of which indicates economic improvement.
Esimees Lauri Hussar
AI Summary
The Chairman thanks them and invites Rain Epler to take the floor.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler expresses cognitive dissonance, noting that funds should be channeled into company profits rather than going to the government, but the media and people's lived experience point to ongoing struggles, and he questions whether the optimistic narrative truly reflects reality.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas stressed that while times are tough, positive developments are evident in the economy. She warned that excessive negative media coverage could create a vicious cycle, making it necessary to also highlight the good news.
Esimees Lauri Hussar
AI Summary
The Chairman thanks [the previous speaker] and invites Lauri Laats to take the floor.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats thanked the responses, noting that they sounded almost like they were written by ChatGPT, but were positive and upbeat. He emphasized that entrepreneurs are pragmatic, zero in on the numbers, and base investment decisions on the actual situation, and they must not be influenced by the anxiety spreading through the media. He also highlighted the discussion surrounding the 5% rise in the cost of living—specifically, whether it was expected or a major surprise, and who was being blamed for it.
Esimees Lauri Hussar
AI Summary
This speech simply says that now is your time.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats notes that inflation has been high.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas said in response that companies have raised prices more than the VAT increase anticipated, and consequently, food prices have risen more sharply than could be blamed solely on the VAT hike.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar calls upon Helle-Moonika Helme to speak.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme criticizes the government for only sharing good news while simultaneously raising taxes, which nullifies the aid provided, arguing that the connections between social policy and tax policy remain incomprehensible. Furthermore, she notes that the 800 new jobs created at the Ministry of Climate do not compensate for the 30 jobs that have been lost, stressing that the reasons for the economic decline must be understood.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas said that the private sector created 12,000 jobs last year and there is no reason to worry about job security, even though unemployment has risen due to the recession, though not as much as expected.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Kalle Grünthal to the stage.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal asks Kaja Kallas if she can describe the life of a family living in poverty and name the cause of it.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas said that families are all very different, and she couldn't understand what exactly the audience currently wanted.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks for the question to be clarified and hands the microphone back to Kalle Grünthal.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Grünthal asks Kaja Kallas for the second time whether she is able to describe, within three minutes, the life of a family living in poverty in Estonia and the reason for its existence.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas pointed out that the causes of poverty are very diverse. The biggest risk group is pensioners and single parents, for whom pensions, child benefits, and maintenance support have been raised. She added that although poverty in Estonia is relatively low and society is quite equal, no single specific model can be offered.
Esimees Lauri Hussar
AI Summary
The Chairman thanks, invites Evelin Poolamets, and confirms that he will accept both submitted and procedural questions, while Kalle Grünthal continues speaking.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Evelin Poolamets cites the European Commission's 2024 Winter Economic Forecast, which projects Estonia's GDP growth at 0.6%, Lithuania's at 2.1%, and Latvia's at 1.7%, and questions why the neighboring economies are performing better and what the underlying reason is.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas emphasizes that we do not want to be a country where the economy is centrally managed by the state, and our economic recession is primarily due to our close ties with the Nordic economies and various energy solutions, but these factors are leveling off, and the state will be able to intervene more effectively regarding these matters.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Varro Vooglaid to speak.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
In summary, the speech conveys a contradictory message: life on this patch of land by the Baltic Sea has been difficult, yet simultaneously better than ever before, and next year it might be even better. Lennart Meri's quote, "The situation is shit, but it is the fertilizer for our future," prompts us to understand how to interpret this paradox—is the situation good or shit?
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas stated that over the past 30 years, the average salary has increased 17.5 times, the average pension 26 times, and prices 5.42 times, accounting for inflation. She added that despite the war and the economic crisis, both GDP and people's well-being have risen in recent years.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar turns to Martin Helme and asks him.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme claims that since Kaja Kallas became Prime Minister, cumulative inflation in Estonia has been 37.5%. He states that the growth of wages and pensions has lagged behind this figure, and he accuses the government of poor economic management, arguing that the state must either manage the economy or let it slip away. He then questions whether they are even capable of growing the economy.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas stated that the 8% economic growth was not her achievement and that the government does not steer the economy in that manner. She requested that if she is ever criticized, the economic growth should also be taken into account, should the economy ever start picking up again.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asked Siim Pohlak to come and speak.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak asks whether the government's tax policy is impacting the economy and domestic consumption, and requests an explanation as to why statistics and bank data indicate that purchasing power and industrial output have fallen to the 2018 level.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas said that the tax burden is low and tax policy must keep the economy stable, but increased expenditures on national defense require additional revenue. This was also confirmed by Leo Kunnas, who stressed that this is necessary to ensure the stability of the economic environment and prevent the war from reaching here.
Esimees Lauri Hussar
AI Summary
The Chairman invites Arvo Aller to the stage.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller claims that EKRE has supported 3% defense spending and is trying to strengthen defense and find money from alternative sources, rather than taxing people into poverty. He then refers to Kalle Grünthal's question regarding how to describe a poor family and where that situation originated.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas emphasizes that based on facts, the figures have proven the improvement of the current situation compared to 30 years ago, and incomes were many times smaller back then. However, the causes of poverty are very diverse, and various studies and analyses have been conducted regarding them.
Henn Põlluaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Henn Põlluaas said that the prime minister’s talk is nonsense, and the tax hike will not benefit defense spending. Instead, it will go toward financing your increased tax burden and various follies, such as the construction of the Climate Ministry building. Furthermore, EKRE has consistently demanded an increase in defense spending.
Esimees Lauri Hussar
AI Summary
The Chairman thanks everyone and makes a request to Henn Põlluaas.
Esimees Lauri Hussar
AI Summary
Your time is now.
Henn Põlluaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speaker poses a rhetorical question: how can you not understand even the most basic things?
Peaminister Kaja Kallas
AI Summary
Kaja Kallas emphasizes that the opposition cannot accuse the government regarding the increase in defense spending, because they were in opposition and not in power.
Esimees Lauri Hussar
AI Summary
The message of the address is that the Madam Prime Minister should respond, after which discussions will be opened and everyone will have the opportunity to take the floor.
Peaminister Kaja Kallas
AI Summary
Kallas emphasizes that we are dealing with an emotionally charged man.
Esimees Lauri Hussar
AI Summary
He addresses Madam Prime Minister and makes a request.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas emphasized that the money for increasing national defense, just like the funding for teachers' salaries and roads, comes directly from taxpayers' pockets. She noted that the tax burden relative to GDP will remain the same even with tax increases, and that we are currently in a different security situation than we were during the war initiated by our neighbor.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the Prime Minister. He stressed the necessity for debate participants to maintain respect and courtesy, and before opening the floor for negotiations, he raised a procedural question concerning the running of the session and then addressed Kalle Grünthal.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal criticized Lauri Hussar and the leaders, emphasizing that the protocol must be addressed immediately, and added that there is a full-scale war in Europe and that Kaja Kallas is currently waging a full-scale economic war against the Estonian people.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked his colleague Kalle Grünthal and stated that Kaja Kallas had remained on topic in her replies, adding that he would not intervene as long as both the question and the answer remained relevant. He then offered an opportunity for clarification, while simultaneously referencing Henn Põlluaas, who had raised a question regarding the rules governing the conduct of the sitting.
Henn Põlluaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Henn Põlluaas called on the prime minister to be honest and accused him of lying before the Riigikogu, asserting that EKRE had significantly increased defense spending, and that the Reform Party immediately cut 100 million euros upon taking power.
Esimees Lauri Hussar
AI Summary
The Speaker offered thanks and announced that the proceedings had moved on to the debate phase, inviting Lauri Laats, the representative of the interpellators, to the Riigikogu podium for the opening address.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats claims that the government's tax policy—lowering income tax alongside increasing consumption taxes—has increased absolute and relative poverty, and he calls for an honest discussion and finding solutions, such as considering a bank tax.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi offers his thanks and addresses Mart Helme with a request.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme accused the government of driving up the cost of living and neglecting rural areas, described the hardships faced by the poor, and stated that the opposition is, in fact, the only entity doing meaningful work, while leveling sharp criticism at Kaja Kallas and the Reform Party.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi requests three more minutes.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme accuses the government of causing the decline of agriculture and the replacement of the nation with Ukrainians, condemns their incompetence and cynicism, and calls on Kaja Kallas to resign.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invites Kalle Grünthal to speak.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal accuses Prime Minister Kaja Kallas of being unable to describe the family life of a poor Estonian person, and claims that her leadership, coupled with involvement in European battles, threatens the livelihood of the Estonian nation.
Aseesimees Toomas Kivimägi
AI Summary
The negotiations have concluded, and the consideration of this agenda item is closed; my sincere thanks to the honorable Prime Minister.