Government Decisions

Session: 15th Riigikogu, 3rd session, press briefing

Date: 2024-05-15 16:33

Total Speeches: 13

Membership: 15

Agenda Duration: 14m

AI Summaries: 13/13 Speeches (100.0%)

Analysis: Structured Analysis

Politicians Speaking Time

Politicians

Analysis

Summary

Under the eighth agenda item of the Riigikogu (Estonian Parliament), MP Anastassia Kovalenko-Kõlvart posed questions to Prime Minister Kaja Kallas regarding the government's economic decisions. Kovalenko-Kõlvart sharply criticized Estonia’s economic recession—the deepest in the European Union—and highlighted rising unemployment (nearly 59,000 people). She accused the government of pursuing hectic and unanalyzed policies, encompassing both cuts and new taxes, demanding concrete steps for a swift economic recovery. Prime Minister Kaja Kallas rebutted the criticism, emphasizing that Estonia operates as a market economy and the state's role is to establish favorable conditions. Kallas pointed to improved economic confidence across various sectors and a rapid decline in registered unemployment. She defended the income tax reform (the abolition of the tax hump), explaining that it aligns with international recommendations to shift the tax burden from labor to assets, and genuinely leaves more money in people’s hands. In a supplementary question, Aleksandr Tšaplõgin raised the problem of teacher shortages, particularly in connection with new language requirements. Kallas defended the transition to Estonian-language education as a vitally important reform that helps improve people's living standards and ensures the survival of the Estonian language.

Decisions Made 1
Collective Decision

No decisions were made

Esimees Lauri Hussar
16:33:05
AI Summary

Chairman Hussar announced that the proceedings would continue at a brisk pace, and today the eighth item is a question from Riigikogu member Anastassia Kovalenko-Kõlvart to Prime Minister Kaja Kallas regarding the government's decisions.

16:33:16
AI Summary

Anastassia Kovalenko-Kõlvart believes that Estonia is in a recession due to three consecutive economic crises—exports are falling and inflation is rising—but the government is not taking significant steps for economic growth, and the planned cuts and taxes are being introduced without an impact analysis, which will worsen the country's competitiveness.

Peaminister Kaja Kallas
16:35:06
AI Summary

Prime Minister Kaja Kallas stated that employment and unemployment indicators must be differentiated, and that various data sources—the register-based data from the Unemployment Insurance Fund and the survey-based data from Statistics Estonia—show a moderate decline in employment over the last year, albeit from a high base. Meanwhile, registered unemployment has dropped from 8% to 7.3% in three months, and economic indicators suggest a turn for the better, given that the state does not direct the economy but instead creates a favorable economic environment, and growing confidence is evident across all sectors.

Esimees Lauri Hussar
16:38:19
AI Summary

The Chairman thanks the previous speaker and invites Anastassia Kovalenko-Kõlvart to pose a clarifying question.

16:38:22
AI Summary

Anastassia Kovalenko-Kõlvart criticizes the government for failing to present concrete steps to advance the economy, arguing that they merely quote statistics. Meanwhile, the plan to abolish the tax hump is creating additional costs for the state budget, and employee representatives state that this measure will not improve their incomes, adding that they would prefer a 10% salary increase.

Esimees Lauri Hussar
16:40:28
AI Summary

This speech calls on the audience to take action, emphasizing that now is their time.

16:40:29
AI Summary

Consequently, the individual effectively loses all the potential income that might result from tax cuts, once you factor in the impact of all the price increases and subsequent tax hikes.

Esimees Lauri Hussar
16:40:39
AI Summary

The speaker gives thanks and submits a request to Madam Prime Minister.

Peaminister Kaja Kallas
16:40:42
AI Summary

Prime Minister Kaja Kallas stated that establishing the defense fund will support the development of the defense industry and job creation, and abolishing the tax hump will genuinely put more money into people's bank accounts (up to about 100 euros per month). This money will be channeled back into the economy, and the measure will also reduce the tax burden on employers.

Esimees Lauri Hussar
16:43:48
AI Summary

The Chairman thanked them and invited Aleksandr Chaplygin to ask a follow-up question.

Aleksandr Tšaplõgin
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
16:43:52
AI Summary

This speech highlights the shortage of teachers—CV Keskus currently lists over 700 job advertisements for teaching positions, and the language requirements set to take effect after August 1st could increase the number of vacancies by several hundred. Does the government have a plan to address this situation?

Peaminister Kaja Kallas
16:44:19
AI Summary

Prime Minister Kaja Kallas confirms that Estonian language instruction will be increased, the transition to Estonian-language education will be carried out smoothly, and more resources will be allocated to schools so that teachers are proficient in Estonian. This, in turn, would lead to better jobs and a higher standard of living, and help ensure the preservation of this small language and culture.

Esimees Lauri Hussar
16:47:25
AI Summary

Chairman Lauri Hussar concludes the discussion on today's eighth item and announces that Anastassia Kovalenko-Kõlvart will address the procedural matters at the very end, so that we can still move on to the following items.