The political situation

Session: 15th Riigikogu, 3rd sitting, information briefing

Date: 2024-05-08 16:21

Total Speeches: 18

Membership: 15

Agenda Duration: 18m

AI Summaries: 18/18 Speeches (100.0%)

Analysis: Structured Analysis

Politicians Speaking Time

Politicians

Analysis

Summary

Member of the Riigikogu Urmas Reinsalu (Isamaa/Fatherland) submitted an interpellation to Prime Minister Kaja Kallas regarding the political situation, demanding the Prime Minister's resignation, citing the government's crisis of indecisiveness and tax hikes that are harming the economy. Reinsalu criticized the government for planning a car tax, which, following rejection by the European Commission, is now being expanded to cover all transactions, and he also faulted the rejection of Isamaa's proposal to reduce administrative costs. He warned that the tax increases do not serve the interests of people's ability to cope financially. Specifically, Reinsalu asked how much of the 2023 budget funds remained unused and why the government is proceeding with the Reform Party's most expensive election promise (the abolition of the income tax hump) amid a difficult financial situation.

Prime Minister Kaja Kallas rejected the demands for resignation, suggesting that a motion of no confidence be initiated instead. She accused Reinsalu of engaging in slogan politics and hypocrisy, citing as an example the 30% increase in the Foreign Ministry's budget during his tenure as minister. Kallas defended the government's decisions, emphasizing the increase in national defense spending to 3.2% of GDP, the development of the defense industry, the transition to Estonian-language education, and the abolition of the income tax hump, claiming that the latter will stimulate the economy and benefit everyone earning less than 8,000 euros. In a supplementary question, Siim Pohlak (EKRE) criticized the Prime Minister's victim mentality and argued that the benefits gained from abolishing the tax hump would be negated by the rise in consumption taxes, which particularly hurts low- and middle-income individuals. At the end of the session, a procedural dispute arose, where Reinsalu accused the Speaker of the Riigikogu of failing to compel the Prime Minister to answer specific financial questions.

Decisions Made 1
Collective Decision

No decisions were made

Most Active Speaker
Urmas Reinsalu
Urmas Reinsalu

Isamaa fraktsioon

Urmas Reinsalu was the most active speaker, presenting the initial question, a clarifying question, and a procedural question, sharply criticizing the government's economic policy and management. His position is the right-wing opposition.

Esimees Lauri Hussar
16:21:22
AI Summary

Chairman Lauri Hussar introduces the eighth question, which Riigikogu member Urmas Reinsalu addresses to Prime Minister Kaja Kallas regarding the political situation.

16:21:30
AI Summary

Urmas Reinsalu called on the prime minister to resign, accusing the government of a decision-making and fiscal crisis. He criticized the tax hikes, the plan to tax all Estonian car transactions, and the failure to adopt Isamaa's proposal for cost-cutting, adding that Estonia is on the verge of the deepest economic recession in Europe.

Peaminister Kaja Kallas
16:23:45
AI Summary

Prime Minister Kaja Kallas stresses that the mechanism for initiating a vote of no confidence is in place, requiring at least 21 signatures to proceed, and confirms that the state budget will be balanced through painful cuts and revenue growth. At the same time, she criticized the lack of substance in the opposition's promises, emphasizing that support depends on concrete actions.

Esimees Lauri Hussar
16:26:51
AI Summary

The main message of the speech is that now is your time to act.

Peaminister Kaja Kallas
16:26:53
AI Summary

Kaja Kallas stresses that political unity is needed to make difficult decisions.

Esimees Lauri Hussar
16:26:59
AI Summary

Chairman Lauri Hussar thanks the floor and invites Siim Pohlak to ask a follow-up question.

Siim Pohlak
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioon
16:27:02
AI Summary

Siim Pohlak emphasizes that a victim mentality is not appropriate, and that tax hikes, increased state fees, and abandoning the idea of abolishing the tax step will do far more harm than good to people earning 2,000–3,000 euros. Therefore, they must be prepared for criticism and, if necessary, reverse these decisions, because otherwise, the public's trust in the country's leaders will decline.

Peaminister Kaja Kallas
16:28:31
AI Summary

Prime Minister Kallas explains that costs are rising primarily due to social benefits, healthcare, national defense, and interest payments. Furthermore, the tax reforms envision the introduction of a car tax (a form of wealth tax) and the abolition of the income tax hump, which would reduce the burden on entrepreneurs, put more money directly into people’s hands, and stimulate the economy.

Esimees Lauri Hussar
16:31:20
AI Summary

The Chairman thanks the previous speaker and gives the floor to Urmas Reinsalu, who will ask a clarifying question.

16:31:22
AI Summary

Urmas Reinsalu accuses the government of taking more money from people through consumption taxes, speaks about stagnation and the failure to adjust the budget, defends Estonia's role as a member of the UN Security Council, and poses two specific questions: How much unused money from 2023 was left over, and why is the Reform Party's most expensive election promise, which is economically incomprehensible, being postponed?

Peaminister Kaja Kallas
16:33:25
AI Summary

Prime Minister Kallas countered the demagoguery by reminding that the government has increased security and national defense spending to 3.2% of GDP (1.3 billion euros over four years), launched the development of the defense industry and several reforms in education, including the transition to Estonian-language education, established marriage equality, made progress in energy and climate legislation, is eliminating the tax hump as the biggest income tax reform, delivered the largest pension increase in history and family benefits, supported Ukraine, ended the distribution of 'roof money' (earmarks), and begun reorganizing the revenue base of local governments to reduce regional disparities.

Esimees Lauri Hussar
16:36:32
AI Summary

Chairman Lauri Hussar says briefly that now is your time.

Peaminister Kaja Kallas
16:36:34
AI Summary

Prime Minister Kaja Kallas says that time is up and the list is very long.

Esimees Lauri Hussar
16:36:38
AI Summary

Chairman Lauri Hussar stated that they had addressed the initial question, a clarifying question, and a supplementary question, and that no further questions on the topic could be accepted. He then concluded the discussion of the eighth question and, before moving on to the ninth, referenced the procedural rules for conducting the session, noting that this format does not allow for rejoinders or reply statements.

16:37:16
AI Summary

Urmas Reinsalu accused the Speaker of the Riigikogu of violating the Rules of Procedure Act, asking why he failed to draw attention to the deviation from the topic or interrupt the proceedings, and why he did not provide an answer regarding how much money the government left unused in 2023 and whether the government possesses a clear overview of the state of the nation's finances. He added that the Prime Minister had criticized Isamaa for addressing coastal community issues in the name of reducing bureaucracy.

Esimees Lauri Hussar
16:38:23
AI Summary

Chairman Lauri Hussar stated that he only intervenes if there is a deviation from the topic, that he adheres to the Riigikogu Rules of Procedure and Internal Rules Act, and that he did not consider a procedural question necessary in this specific case because the Prime Minister remained on topic. Following this, Valdo Randpere raised a question regarding the procedure for conducting the sitting.

Valdo Randpere
Valdo Randpere
Profiling Eesti Reformierakonna fraktsioon
16:39:01
AI Summary

He asks whether the Board of the Riigikogu has discussed the jurisdiction of the special committees and the special committee for budget control, and requests that government members be reminded of the support they receive from the Riigikogu and its committees, so that they can carry out their work more effectively.

Esimees Lauri Hussar
16:40:12
AI Summary

Chairman Lauri Hussar noted that the topic was not a procedural issue, emphasized the broad freedom of the Riigikogu committees' right to self-organization in deciding how discussions proceed within the committees, and stated that he would not continue the discussion with Urmas Reinsalu at that time.