First Reading of the Draft Resolution of the Riigikogu "Making a Proposal to the Government of the Republic Regarding the Imposition of a Temporary Solidarity Tax on the Banking Sector" (367 OE)
Session: 15th Riigikogu, 3rd session, plenary session.
Date: 2024-05-08 17:07
Total Speeches: 74
Membership: 15
Agenda Duration: 1h 4m
AI Summaries: 74/74 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The first item on the agenda dealt with the first reading of Draft Riigikogu Resolution 367, proposed by the Estonian Centre Party faction, concerning the introduction of a temporary solidarity tax on the banking sector amidst the pre-crisis economic environment. The presentation was delivered from the Riigikogu rostrum by our good colleague Andrei Korobeinik. His report addressed the necessity of finding an additional value-added funding source for the state, which faces an annual state budget deficit of approximately one billion euros, and he proposed the solidarity tax as a potential solution. He cited the example of Lithuania and argued that bank profits derived from interest collection do not represent natural added value; rather, they result from central banking decisions, which in turn can influence migration and investment. Conversely, several critical questions were raised in opposition: the impact on the economy, the potential for increasing inequality, the burden placed on pensioners and families, and the consideration of alternative solutions, such as halting the solidarity bank tax or utilizing different tax incentives and regulations instead. In conclusion, participants stated that while the underlying ideas of solidarity are understandable, the draft resolution failed to garner sufficient support today, and the ensuing discussion highlighted differing views on how best to address the pre-crisis budget shortfall.
Decisions Made 1
First Reading of Bill 367: The Riigikogu voted and the bill was rejected. Voting Result: 14 in favor, 0 against, 0 abstentions.
Most Active Speaker
Most active speaker: Andrei Korobeinik (Centre Party); position: other (party with a representative, on the center-ground side).
Aseesimees Toomas Kivimägi
AI Summary
The first item on the agenda is the first reading of Riigikogu Draft Decision 367, submitted by the Centre Party faction, concerning the establishment of a temporary solidarity tax on the banking sector. Colleague Andrei Korobeinik has been invited to the Riigikogu rostrum to give the presentation.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
According to Korobeinik, the Estonian state budget faces an annual deficit of about one billion euros, and the Reform Party's economic policy has failed. Therefore, he suggests taxing bank profits—a solidarity tax—which would inject roughly half a billion euros into the state budget every year and help secure the necessary funding during the crisis.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanked the presenter for the presentation and opened the floor for questions, asking Vadim Belobrovtsev to answer them.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Belobrovtsev said that he supports the draft legislation but questioned why the prime minister invited representatives of the banks, and they bought their way out of the situation by promising to channel more money to the state, and now the bank tax is no longer being discussed.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik expressed thanks for the question, noting that starting a discussion about a nuclear power plant is sensible. He acknowledged that Kaja Kallas’s promises have not been kept, pointing out that taxes have risen, family benefits have fallen, and bank profits remain steady, and he concluded by expressing the wish that Estonia had a prime minister whose priorities were different.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invited Anastassia Kovalenko-Kõlvart onto the stage.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart voiced criticism, pointing out that while the government plans to raise taxes and introduce various new levies, it refuses to consider a one-off tax on banks' excess profits. She accuses them of employing double standards and questions whether the Prime Minister operates under her own constitution, suggesting that banks are somehow under the state's special protection and that the principle of legal certainty applies exclusively to them.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
The presentation criticizes the absence of exceptions in the car tax, references the Reform Party's changed stance, and questions whether the current government can lead the country out of the crisis, implying that Kaja Kallas personally seeks to protect the banks.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi called Varro Vooglaid to the stage.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid stated that the direction of the bill is absolutely right and necessary, arguing that a large portion of the money is being siphoned off without proper taxation. He then questioned whether the governing parties' opposition might be hiding a conflict of interest arising from their bank shareholdings, which would yield them a financial benefit.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik points out that there is little information available and government processes are often opaque, and although protocols exist, he doesn't know the substance of those discussions. He cites the example of the platform work directive, which Eesti 200 tried to block, noting that during the debates on the inquiries, it became clear that the directive served the interests of specific individuals, rather than the interests of the government as a whole. He then asks why Kaja Kallas acts as the primary defender of the banks. He believes this is extremely detrimental to Estonia, given that Euribor is high and bank profits are massive. Furthermore, interest rates in Estonia are higher than in Scandinavia, even though client discipline here is equally good or even better. This allows banks to charge Estonian people more money every month, which is completely unjust. He concludes by wondering why Kaja Kallas refuses to confront the banks.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invites Lauri Laats to speak.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats criticizes that the optimism promised during Andrus Ansip’s tenure never materialized, and the current government neither demonstrates that same optimism nor keeps its promises. Furthermore, regarding the bank tax, the banks’ behavior remains unchanged—they have not lowered interest rates when issuing loans to private individuals and businesses, nor are they contributing to society.
Aseesimees Toomas Kivimägi
AI Summary
It was merely an expression of thanks.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats is asking what the reason is behind this, why the government is unwilling to implement the bank tax.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik criticizes that the taxation on the high-interest profits of Estonian banks is very low, and due to Euribor, large sums are leaving Estonia, costing every Estonian resident about a thousand euros, even though the government says that banks must not be taxed.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi requests that Aleksandr Tšaplõgin be called to the stage.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He/She asked why the government taxes the poor instead of the rich, and implied that the Reform Party is afraid of losing its sponsors.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik said that tax concessions aimed at the rich increase inequality, and during a crisis, the state must intervene, ensuring the elderly, children, and large families receive aid, rather than taking money from the poor and distributing it to themselves or others. This will drag Estonia down into the European Union's lowest tier, and the prime minister should take responsibility for it.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invited Aleksei Jevgrafov to speak.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
According to the report, bank profits have grown rapidly due to the rise in Euribor, and Euribor-linked loans make up a significant portion of housing loans, leases, and corporate loans. Data from the Bank of Estonia shows that banks generated a total profit of 940 million euros last year and 444 million euros in the first quarter of the current year (compared to 213 million during the same period last year). However, despite these large profits, many segments of society are facing economic hardship—is this situation fair?
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik argues that the government’s decisions are increasing inequality and harming the Estonian economy, adding that a solution should have been implemented sooner, citing Lithuania as an example, where the economy is growing substantially precisely because the poorer segments of the population were not targeted.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invited René Kokk to speak.
AI Summary
Rene Kokk said that the bill is perfectly sensible, and EKRE had previously drafted a bill with the exact same content, but he highlighted that the government is taxing all sectors while the banking sector remains excluded. He referenced the extraordinary income generated by Euribor, which increases banks' profits and ought to be taxed, and simultaneously asked why entrepreneurs are being granted better access to capital and why that explanation does not apply.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
The purpose of taxing banks and implementing offsetting measures is to ensure that during a crisis, excessive funds are not hoarded, but instead, more is invested into the Estonian economy, making investments in Estonia more attractive compared to neighboring countries.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Speaker Toomas Kivimägi called upon Mart Maastik to speak.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Maastik claims that banking is just another form of private enterprise, like selling cars, and that the car tax and the rise in Euribor bring profit to the private entrepreneur. He asks if there is any other known form of private enterprise where national or pan-European regulation would generate the same kind of additional profit.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
When asked if this is the casino business, I reply no, because Eesti Loto's potential profit margin is around 50% minus operating costs, and this figure is significantly lower than the margins banks achieve. Furthermore, the state regulates sectors with higher margins, such as alcohol sales and gambling.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi addressed Aivar Sõerd with a request.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd notes that due to extraordinary circumstances, a favorable economic climate may arise in certain sectors.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
The statement is merely an affirmative response, expressed simply by the word "Nii."
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd stated that the profits of bus companies organizing trips to Russia have recently doubled because the Finnish-Russian border is closed and clients are now traveling to Russia via Estonia. He then asked whether any draft legislation for taxing these extraordinary profits was already prepared.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik thanked his colleague and said that the Reform Party had made a proactive move, cancelling free bus travel in the counties, which reduced the profit margin of the bus companies, and that bus companies would not be targeted in the future. He also added that his colleague handles the sector well, and if more examples are presented, he will be able to comment on them in greater detail.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanked the rapporteur, reminding everyone that during the deliberation of the draft decision, a total of two questions may be asked—one question for each rapporteur—and then invited Aivar Sõerd to present the positions and decisions of the leading committee, which is the Finance Committee, to the Riigikogu podium.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Riigikogu Finance Committee discussed draft bill 367 and unanimously decided to include it on the plenary session agenda on April 9th, and to designate Aivar Sõerd as the lead representative, noting that the adoption of the bill requires an absolute majority of the Riigikogu membership.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi called for questions from the audience and requested Lauri Laats to present them.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats stressed that a solidarity bank tax should be introduced for this period so that banks could make a collective contribution to the economy.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
The question was highly pertinent, as in certain sectors, favorable market conditions arise due to extraordinary circumstances or one-off factors, resulting in corresponding one-time extraordinary profits.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksandr Tšaplõgin thanks the presiding officer and the presenter and asks why the taxation of pensions is good, but the taxation of banks is bad.
Aseesimees Toomas Kivimägi
AI Summary
The Deputy Chairman invited Aleksandr Chaplygin to take the floor.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd stated that, most likely, following the committee's presentation, there will be a round of negotiations where these issues can be addressed, since they were not discussed in the committee.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invited Andrei Korobeinik to speak.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik compares the Reform Party's successful crisis management from that time with the current situation and questions why the party is now unable to function just as effectively.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Following the commission's report, a round of negotiations will begin, which will broadly address policy, history, and practice. However, for now, the commission's discussion remains the central focus.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi emphasized that the primary task is to present the discussion within the committee, and not to investigate the history of political parties or the evolution of their positions, and he requested that everyone stick to the committee discussion.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The rapporteur believes the IMF data points to a recession in the Estonian economy, coupled with high inflation and growing unemployment. Furthermore, the government is attempting to plug budget shortfalls by raising taxes, state levies, and imposing fines, a strategy that only exacerbates inequality and poverty. In their opinion, it would be better to abandon the plan to eliminate the tax hump and instead introduce a bank tax to improve the economy and the welfare of the people.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd thanks and says that he doesn't think.
Aseesimees Toomas Kivimägi
AI Summary
This is a brief request for Mart Maastik to speak.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Maastik claims that the banking sector does not experience random market conditions; rather, raising Euribor generates continuous extraordinary profits, resulting in people who cannot afford interest payments losing their inexpensive real estate. This property is then bought up cheaply, and he asks why this process is not regulated in a way that benefits society.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Discussing banking, Sõerd observes that it is one of the most regulated sectors overall, and the increase in Euribor, which is intended to curb inflation, is tied to central bank interest rates. Furthermore, although there is a market consensus that the ECB will start lowering interest rates in the near future, the favorable period for banks will conclude this year.
Aseesimees Toomas Kivimägi
AI Summary
Aleksei Yevgrafov is invited to the stage at the beginning of the address.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
According to the report, banks earned 113 euros in net profit per month for every Estonian employee, and the question is posed whether, as the former Director General of the Tax Board, there is seen to be a reason for implementing a temporary solidarity tax on the banking sector.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd notes that the question is not relevant, but points out that the advance income tax for banks will increase starting next year. Furthermore, the income tax on banks' dividends constitutes a significant portion of the corporate income tax receipts within this year's budget revenue, and corporate income tax is one of the best-performing tax revenues this year.
Aseesimees Toomas Kivimägi
AI Summary
This is a short, direct request addressed to Anti Allas.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas asks whether the Commission has discussed transferring a portion of the exceptional revenue to the states' stability mechanism, and whether such an idea has been brought up for discussion in Europe over the past 50 years.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd pointed out that there is no information regarding the establishment of a separate fund, but the effect of the Euribor increase on profits is subsiding, as Euribor is falling, banks' interest income is decreasing, while the interest expense related to deposits is simultaneously rising.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks the presenter and notes that there are no further questions for the presenter, but he does have questions regarding the rules of procedure for the session. He reviews these questions and provides his answers, accepts three questions, and then calls upon Andrei Korobeinik.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik raised two questions concerning the course of the session and the role of the commission's rapporteur. He noted that the discussion, which featured Jürgen Ligi's lecture on his worldview, was interesting, but he argued that Aivar Sõerd should have led that discussion and introduced new information to the debate.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi promises to answer soon and turns to Mart Maastik with a request: "Please."
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Maastik notes that the respondent failed to answer his question, explaining instead the use of Euribor, and since the respondent has now departed, there is no point in asking those questions; he calls on the chairman to intervene and agrees with Korobeinik that continuing the line of questioning would be futile.
Aseesimees Toomas Kivimägi
AI Summary
He explains that since Anastassia withdrew her question, he will now accept Rain Epler's question and answer it.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He is surprised and realizes that the listeners are responding to everyone simultaneously.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi's remarks were limited to just one word: "Yes!"
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler stated that decisions during the session are made based on whether the individual is a party colleague, a coalition partner, or a member of the opposition. He brought up the previous commission's rapporteur and the agreement on speaking about issues of independent authority, and asked why questions that do not pertain to the commission's discussion should not be allowed. He emphasized that clearer rules would make the debate easier for everyone to follow.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi stated that he was ready to explain and emphasized that procedural questions must not disrupt the debate, noting that they are often not truly procedural but instead express the viewpoint of the questioner. He added that, as the presiding officer, he would not interfere with the presentation, would allow members to decide, and would grant additional time for responses if necessary. The session will now move to the discussions, where a speech is scheduled to be delivered on behalf of Lauri Laats.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The Centre Party's proposal is to introduce a temporary bank tax so that the banks' solidarity and the additional profit channeled back into society can help the economy, as the rise in the ECB's Euribor has brought banks twice the profit—in the form of a 444 million euro profit in the first quarter.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi requested three extra minutes.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats is blaming the government for creating the budget deficit and is calling for the implementation of a bank tax, coupled with the reversal of the tax reform, as a solution to avoid increasing the tax burden on the public.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi gives the floor to Tarmo Tamm on behalf of the Eesti 200 parliamentary group.
Tarmo Tamm
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He urged the rejection of the temporary solidarity tax on the banking sector, warning that it would create uncertainty for businesses and harm the economy, and offered alternatives such as buying bank shares or the state acquiring Swedbank so that the profit would remain in Estonia.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi thanks them on behalf of the EKRE faction and gives the floor to Rain Epler.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler emphasizes that the taxation of innovative entrepreneurs must not be used as a punishment, but in this specific case, the profit primarily stemmed from the activities of central banks and the US Federal Reserve. Furthermore, an earlier draft bill offered the opportunity to return this profit to society—for example, by raising interest rates on deposits or as a tax—and although the banks' PR campaign claims this constitutes punishment, the solution is regulation and raising interest rates in correlation.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi declares the discussions closed, confirms that no amendments were submitted, and since this is a single-reading bill, he directs Bill 367—the Riigikogu resolution submitted by the Estonian Centre Party faction, titled "Proposal to the Government of the Republic concerning the introduction of a temporary solidarity tax on the banking sector"—to the final vote. The adoption of this bill requires a majority vote of the full membership of the Riigikogu, and he asks everyone to take a position and cast their vote.
Aseesimees Toomas Kivimägi
AI Summary
The motion received 14 votes in favor, 0 against, and 0 abstentions, and draft bill No. 367 was rejected.