Debate on the key national issue "The impact of price rises on economic competitiveness and people's livelihoods: What to do?"
Session: 15th Riigikogu, 6th sitting, plenary session
Date: 2025-09-25 14:12
Participating Politicians:
Total Speeches: 197
Membership: 15
Agenda Duration: 2h 40m
AI Summaries: 197/197 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu debate focused on the matter of national importance initiated by the Isamaa faction, titled "The Impact of Price Increases on Economic Competitiveness and People's Well-being. What is to be done?". Presentations during the debate were given by Urmas Reinsalu, a member of the Isamaa faction, and economic experts Raivo Vare, Peeter Raudsepp, and Heido Vitsur. Reinsalu highlighted a 46.2% price increase spanning from the beginning of 2021 to the second quarter of 2025, emphasizing its unethical dimension and the government's systemic steps in accelerating inflation (tax hikes, growth in administrative spending). As solutions, he proposed a critical review of the indirect tax burden and a reduction in administrative costs. The experts confirmed the stagnation of the Estonian economy and the decline in competitiveness (33rd place in the IMD ranking; Lithuania and Latvia have overtaken Estonia). Peeter Raudsepp highlighted consumer barometer data showing the deterioration of people's purchasing power and financial security across all income quartiles. Heido Vitsur emphasized that Estonia's price level, especially for foodstuffs, is among the highest in Europe, which is inconsistent with our lower levels of productivity and prosperity. The experts recommended a bolder, more experimental economic policy, an audit of state expenditures, and a serious debate on taxation and regional policy, referencing the IMF's recommendation to consider a progressive income tax. The opposition (Centre Party, SDE, Isamaa) sharply criticized the coalition's absence from the debate and the government's regressive tax policy, which deepens inequality and slows down the economy.
Decisions Made 1
The sitting was extended until the agenda item was completed, but no later than 14:00. (For 19, against 0, abstentions 0)
Most Active Speaker
Urmas Reinsalu (right) initiated the discussion and was the most active politician, delivering the opening presentation, answering questions, and giving the concluding speech on behalf of the Isamaa faction.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller thoroughly introduced the procedure and speakers for the discussion on the matter of national importance initiated by the Isamaa faction, titled "The impact of price increases on economic competitiveness and people's coping ability. What to do?" He noted that presentations would be given by Urmas Reinsalu, Raivo Vare, Peeter Raudsepp, and Heido Vitsur, which would then be followed by questions and debates.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller introduced the second item on the agenda—a debate initiated by the Isamaa faction titled "The Impact of Price Increases on Economic Competitiveness and People's Livelihoods"—and explained the procedure involving four presenters: Urmas Reinsalu, Raivo Vare, Peeter Raudsepp, and Heido Vitsur.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu presented a comprehensive analysis of Estonia's price surge (46.2% since 2021). He criticized the government's steps that accelerated inflation and put forward specific proposals: reviewing the burden of indirect taxation, reducing administrative costs, limiting indirect charges, and establishing an inflation policy target.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu sharply criticizes the government's inaction and systemic actions that have led Estonia to nearly a 50% price increase since 2021, drastically eroding people's purchasing power and the economy's competitiveness. He demands immediate measures to reduce indirect taxes and administrative costs, as well as limiting inflationary burdens (such as fees associated with the green transition), and setting a clear national goal for inflation policy.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller offered his thanks and noted that there were also questions, subsequently giving the floor to Peeter Ernits.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits points out that Estonia has held the title of the European Union’s inflation king since 2009. He demands an explanation for why our current inflation rate (6.2%) remains significantly higher than that of our neighbors, Finland (2.2%) and Latvia (4.2%), especially considering the shared geopolitical factors.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits asked why Estonia has held the role of the European Union’s inflation king since 2009, while its neighbors have significantly lower figures—Finland at 2.2%, Latvia at 4.2%, and Estonia at 6.2%.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu analyzed the evolution of inflation, asserting that we have moved past convergence-driven inflation and that the package of measures chosen by Estonia was insufficient. He cited, for instance, the spiral effects of VAT increases, which ultimately made Estonia the champion of price hikes in Europe.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stresses that Estonia has moved past the convergence inflation that followed its accession to the European Union. He argues that while the current price hike is driven by international pressures, the government’s chosen measures to mitigate inflation—especially the increases in VAT—have been insufficient and detrimental. He sharply criticizes the government’s forecasts, which he claims underestimated the spiraling effect of the tax increases, pointing to early 2024, when Estonia became the EU’s inflation champion. Furthermore, he concludes that the revenue generated by the tax hikes is trivial compared to the vastly greater damage inflicted upon society and the economy.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller gave the floor to Andres Metsoja.
Andres Metsoja
Profiling Isamaa fraktsioonAI Summary
Andres Metsoja noted that people feel life in Estonia is deteriorating and the government is failing, and he specifically asked what needs to be done today to break this deadlock and get Estonia back on its feet.
Andres Metsoja
Profiling Isamaa fraktsioonAI Summary
Andres Metsoja acknowledged that the public's objective assessment deems life in Estonia poor and the government incompetent, and asked the rapporteur directly what concrete steps must be taken to pull the country out of the current deadlock and help it get back on its feet, emphasizing that the people are waiting for solutions and a vision.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu analyzed the options for managing inflation in Estonia, noting that while we lack the tool of central bank policy, we do have tax policy and the management of the state's inflationary demand at our disposal. He also stressed the necessity of auditing the government's inflation-driving activities in the same manner as bureaucracy.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu argues that since the Estonian central government lacks the interest rate lever necessary to curb inflation, it must focus on tax policy and reducing the state's inflationary demand. He simultaneously urges the government to acknowledge and audit the massive price-hiking effect caused by state-imposed hidden burdens, regulations, and ambitious green transition plans—an effect currently absent from political dialogue—and finally set a national inflation target.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller addressed Ants Frosch, demanding a brief and rapid question from him, which must be followed immediately by an equally rapid answer.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller asked Ants Frosch for a quick question and a quick answer.
Ants Frosch
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Ants Frosch stressed that Estonia’s crises are cross-sectoral and stem from mental stagnation that began even before 2021. He then posed the question of whether the country has reached the threshold of a new era of awakening and what steps should be taken to unleash the free spirit to create once more.
Ants Frosch
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Ants Frosch posed the question of whether Estonia needs change, whether we have reached the cusp of a new era of awakening, and what steps we should take to ensure the free spirit can be unleashed once more.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stresses that the great transformations in Estonian history have always been fueled by public sentiment, spiritual anticipation, and the belief in one’s capacity to influence the trajectory of events. Consequently, even amidst the current economic and inflation crisis, we must abandon a passive, objectified mindset and assume control of our own present, demanding that leaders demonstrate a greater ability to articulate challenges and engage in honest dialogue with the public and investors.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu emphasized that the driving force behind all major processes is not merely objective circumstances, but rather our collective feeling and societal attitude—the belief that we can influence the course of events instead of being relegated to an objectified status—and that we require rigor in governance.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller concluded the recently finished question and answer session, thanking both the presenter and the questioners, and then gave the floor to the next speaker, economics expert Raivo Vare.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller thanked the speaker and the questioners, and then invited economic expert Raivo Vare to the podium as the next presenter.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare offered a comprehensive analysis of the current state of the Estonian economy, emphasizing that hidden beneath the budget discussion, the country faces a classic quadrangle where economic development is hampered by inflation, demographic pressure, and the additional burden of national defense. He pointed out that Estonia's previous economic model, which relied on cheap labor, energy, and money, has been exhausted, and he criticized the political approach that assumes nothing more than "fine-tuning." As a way out, he proposed the need for a qualitative leap, a bolder, more experimental economic policy, reduced bureaucracy, and the implementation of specific measures (such as fixed-price energy for large consumers) to restore competitiveness and adapt to the new global paradigm.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare presented a thorough analysis of the economic situation, addressing the dual impact of inflation, the growth and distribution of welfare, demographic challenges, the burden of national defense, the energy transition, and global cycles, emphasizing that Estonia needs a qualitative leap and a new paradigm.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller noted that time was up.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare stressed the necessity of shedding the image of being a peripheral and frontline state, noting that we must distinguish ourselves advantageously in some way. However, currently we are failing to stand out favorably; instead, things have actually deteriorated.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare stresses the pressing need to shed the image of a peripheral and frontline state. To achieve this, efforts must be directed towards finding a favorable way to distinguish ourselves, as the current differentiation has become rather disadvantageous, and furthermore, Europe’s wider problems do not absolve us of this responsibility.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller thanked the speaker for the thorough presentation, noted that there were questions for the presenter, and gave the floor to Tanel Kiik.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik asks the server about the impact of the government's tax policy on economic growth and suggests a tax policy solution that would support low-income earners.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speaker began by acknowledging the state’s limited capacity for direct intervention in price policy, emphasizing that the primary levers of influence are indirect, such as tax policy, investments, and specific exemptions. It was simultaneously stressed that the government’s main objective must be to improve citizens' coping ability in order to mitigate the effects of rising prices. Criticism was directed at the government’s current tax package, which was deemed regressive. It was argued that this package makes the tax system more inequitable, providing additional income to the wealthier segment of society while low-wage earners are likely to lose out. In light of this, two main questions were posed to the presenter. First, how does such a regressive tax package impact Estonia’s potential for economic growth, and specifically, the alleviation of inflationary pressures. Second, the expert was asked for recommendations regarding alternative fiscal policy solutions. Specifically, the question was what measures the government should implement to support low-wage earners rather than the wealthier segment of society. Alternatives suggested included lowering the VAT on foodstuffs or implementing a progressive income tax, underscoring the necessity of a socially fairer tax system.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik emphasizes that the state should invest in indirect measures, especially tax policy, to improve people's ability to cope with rising prices. He also criticizes the government's current tax package for its regressiveness and for harming low-wage earners, while simultaneously asking what alternative tax policy solutions (such as lowering VAT on foodstuffs or implementing a progressive income tax) should be implemented to support economic growth and mitigate the effects of price increases.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare recommended lowering the VAT on basic foodstuffs, following Latvia's example, considering a wealth tax, introducing support schemes with differentiated income taxation, and taxing transactions. He stressed that suppressing sales capability is dangerous.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare discussed potential adjustments to tax policy. He recommended piloting a reduction in VAT on basic foodstuffs and implementing differentiated income taxation for the lower deciles. While he considered a wealth tax logical, he noted it would yield limited revenue in the Estonian context. However, he stressed that the economy's primary challenge remains increasing export competitiveness and moving away from the cheap labor model, instead favoring entrepreneurship through alternative means.
Majandusekspert Raivo Vare
AI Summary
The speaker addressed several tax policy measures, stressing that reducing VAT on basic foodstuffs, following Latvia's example, is entirely feasible and shouldn't be shied away from. This should be implemented experimentally to gauge its actual impact before a final decision is made. He also suggested that the concept of a wealth tax is inherently logical and sound, but in a society like Estonia, it wouldn't provide a large enough arithmetic boost to justify basing the entire tax system on it, although it would still make some contribution. For implementing tax policy support schemes, the speaker sees the primary option as differentially taxing incomes in the lower deciles. While this is already being done to some extent by raising the income tax minimum, it requires finer tuning, as even lower incomes contribute significantly to the state budget. Furthermore, he proposed the possibility of taxing transactions that do not have a direct negative effect on Estonia's export capacity and competitiveness. Finally, the speaker emphasized that regardless of any internal redistribution efforts, the foundation of any economy's viability is the ability to export and sell. Suppressing sales capability for any consideration is highly dangerous. Estonia faces the necessity of adapting to a new reality, as the old model, which relied on cheap labor, has been exhausted. Entrepreneurship must be favored and stimulated through means other than providing cheap labor.
Majandusekspert Raivo Vare
AI Summary
The speaker addressed tax policy alternatives, stressing that lowering the VAT on basic foodstuffs is entirely feasible and a common experimental option in Europe that we shouldn't be ashamed of. However, its impact should be carefully monitored before a final decision is made. Secondly, he acknowledged the logical validity of the asset tax concept but warned against basing the entire tax system upon it. He explained that in a society like Estonia, an asset tax would not provide an arithmetically large enough fiscal jump, meaning its utility lies more in other arguments. As a third crucial measure, the speaker sees differential taxation of incomes in the lower deciles, which is the only effective way to implement support schemes. Although this has already been partially implemented by raising the income tax minimum, this area requires finer tuning, as even lower incomes contribute significantly to the state budget. Additionally, the possibility of taxing transactions was mentioned, which does not have a significant negative impact on export capacity. Finally, the presenter emphasized that regardless of the redistribution mechanisms employed, the core problem of the Estonian economy remains sales and export capacity. The old model based on cheap labor has been exhausted, and therefore entrepreneurship must be encouraged through other means, without suppressing sales capacity.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Reili Rand.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Reili Rand acknowledged the weak competitiveness of the Estonian economy but shifted the focus to domestic distribution, highlighting the extreme regional inequality between counties in terms of value creation, export capacity, and wage levels, and requested the presenter's recommendations for mitigating this disparity.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Reili Rand inquired about the regional situation and the disparity among different counties, asking for recommendations on how to reduce regional inequality.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
The speaker began their address by acknowledging that the general competitiveness of the Estonian economy is currently very weak. However, he stressed that in addition to the problems at the national level, domestic distribution and regional inequality require separate consideration, which, in his estimation, is even more acute and complex. A more detailed focus was placed on the extreme differences between counties. This regional disparity is reflected in several important economic indicators, encompassing both the capacity of different regions to contribute to added value and export capability, as well as the wage levels of local residents. According to the speaker, the regional landscape is characterized by extremes, pointing to deep structural problems. Finally, a direct question was posed to the presenter regarding his specific messages and recommendations for alleviating and solving this acute regional inequality, which further complicates the overall economic picture in Estonia.
Majandusekspert Raivo Vare
AI Summary
The speaker began by criticizing the current approach to regional policy, challenging the widespread assumption across the political spectrum that regional differences don't exist in a small country—a claim that economic geographers certainly disagree with. Regional policy actually employs standard, tried-and-tested methods, the best that have been devised. These include developing infrastructure, promoting education, and encouraging entrepreneurship in more challenging regions, whether through tax incentives or subsidies. Unfortunately, Estonia constantly violates these principles, leading to the country's transformation into a city-state. While this process might be partially inevitable and even necessary for international competitiveness, the speaker believes the pendulum has swung too far, and that is the core issue. Furthermore, the speaker stressed that the issues facing Russian-speaking regions constitute a separate and serious topic requiring specific attention.
Majandusekspert Raivo Vare
AI Summary
The speaker began by criticizing the current approach to Estonian regional policy, which has often proceeded from the mistaken assumption across the political spectrum that because we are a small country, we are all one and there are no differences. However, from the perspective of economic geographers, this does not hold true. In reality, regional policy utilizes standard, proven methods, and nothing smarter has been invented. These include developing infrastructure, promoting education, and encouraging entrepreneurship in more challenging regions, whether through tax incentives or support measures. The speaker emphasized that Estonia has consistently deviated from these standard principles, resulting in the country's "city-state-ization," or excessive centralization. Although this process may be partly inevitable and even necessary for international competitiveness, the centralization screw has currently been clearly overtightened. In addition to the general problem of centralization, the speaker also specifically highlighted the unique and unresolved issue of Russian-speaking regions.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare emphasizes that regional policy relies on standard approaches—such as infrastructure, education, and the promotion of entrepreneurship—but Estonia ignores these principles, living in the illusion of unity. This, he argues, leads to an inevitable, yet excessively overblown, transformation into a city-state, compounded by the separate issue of Russian-speaking regions.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare explained that regional policy relies on standard approaches—infrastructure, education, and promoting entrepreneurship in more challenging areas—but we are failing to follow this and are becoming a city-state, and on top of that, we also have the problem of Russian-speaking regions.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Jaak Aab.
AI Summary
Jaak Aab referred to the report by the Competitiveness Expert Panel, highlighting the main issue facing Estonian business: the high cost and availability of capital, given that loan risk margins are nearly twice as high compared to Finland. He wanted to know how the rapid growth of national debt and interest rates affects the competitiveness of the economy, and whether a potential drop in sovereign ratings will subsequently start impacting the risk margins on loans for private individuals and companies.
AI Summary
The speaker raised the question in light of the competitiveness expert council report, focusing on the problem of capital availability in Estonia, which is a significant obstacle to economic development. He emphasized that the risk margins on loans for both private individuals and businesses are nearly twice as high as they are, for instance, in Finland. This situation is explained by the potentially small size of the market and low competition within the banking sector. Although it has been suggested that the state could alleviate the situation using certain financial instruments, the speaker drew attention to the rapid expansion of government debt and the rise in interest rates. The main concern is how the increase in sovereign debt affects the overall competitiveness of the economy. He sharply questioned whether the potential deterioration of sovereign ratings will subsequently begin to directly affect the loan conditions for Estonian people and businesses due to the risk margin.
AI Summary
Jaak Aab inquired about the recommendations of the expert panel on competitiveness and the issue of capital availability, noting that our risk margins on loans are twice as high as those in Finland, and asked how the expanding state debt affects the competitiveness of the economy.
Majandusekspert Raivo Vare
AI Summary
The speaker believes that fears of sovereign rating downgrades are currently overblown, although other factors, such as Estonia’s status as a front-line state, influence the country significantly more. However, it is stressed that every political step that undermines economic competitiveness is noted by the assessors. If enough of these negative factors accumulate, the threat of a rating downgrade becomes real. This issue is particularly sensitive for Estonia because we are small and remote, meaning rating stability is more crucial for us than it is for many other countries. In addition to local problems, the speaker highlights Europe’s broader economic difficulties and the outcry from top financial institutions regarding falling behind in global competition. Europe is facing significant cost disadvantages: energy prices are at least 3.5 times higher, and labor costs are comparable to or higher than those in the United States. The situation will become critical if financing costs also double compared to global competitors, which would put everyone in a difficult position. The speaker notes that while Europe as a whole is struggling, this offers no comfort to Estonia, as our situation is even worse in this context.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare explained that the drop in sovereign ratings hasn't happened yet, but every move that negatively affects the economy's competitiveness is being logged, and Europe as a whole is struggling because energy prices are 3.5 times higher, and if the cost of financing doubles, everyone will be in trouble.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare emphasizes that although the threat of lowering the sovereign rating is not yet immediate, and Estonia is more affected by its status as a frontline state and other factors, evaluators are taking note of political steps that harm economic competitiveness. These steps are particularly dangerous because Europe as a whole is losing global competitiveness due to high energy and labor costs, and Estonia’s situation is even worse.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare reiterated his previous answer regarding sovereign ratings, noting that Europe is struggling due to high energy and labor costs. He added that if the cost of financing doubles, everyone will be in trouble, but that’s no consolation for us, because our situation is even worse.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Urmas Reinsalu.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu thanked the speaker for the inspiring presentation and asked whether the state should have a specific inflation policy objective and what more concrete tools could be utilized, citing, for instance, the 2021 summer forecast which predicted 9.8% inflation by 2025.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu praised the inspiring presentation but highlighted the inaccuracy of earlier inflation forecasts (referencing the summer 2021 forecast of 9.8% cumulative inflation by the end of 2025). He then asked whether the state should maintain its own inflation policy target as an instrument of economic management, and what specific tools would be needed to achieve it.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
The speaker began their address by thanking the previous presenter for an inspiring presentation, before moving on to tackle the subject of economic forecasts and inflation policy. They pointed out that the summer 2021 forecast anticipated Estonian inflation reaching 9.8% by the end of 2025. While this prediction later proved inaccurate, the questioner conceded that the error stemmed from a broader paradigm shift, and no single person could be held individually responsible for it. Drawing from this historical context, the speaker posed their main question: Should the state, given the current economic climate, maintain its own distinct inflation policy target? They emphasized that such a target should be viewed as a crucial instrument of economic governance, helping the state better steer the economy and mitigate future shocks. Finally, the speaker requested clarification on the specific tools and measures the state should adopt, assuming the necessity of an independent inflation policy target is conceded. Thus, the question centered on both the necessity of a national inflation target and its practical implementation through economic policy.
Majandusekspert Raivo Vare
AI Summary
The speaker stressed the necessity of avoiding state-driven inflation stimulation, suggesting that the solutions lie in the targeted use of resources and the management of indirect costs that are under state control. Regarding financial discipline, the principle must prevail that borrowing should only be for investments, not to cover current expenses—a logic that is currently not being adhered to. If preventative steps are not taken amid continuous cost growth, covering the deficit will be inevitable. High inflation is, moreover, a serious competitive factor that requires separate consideration. Since this is a complex issue for which there is no single "magic bullet," a whole series of measures must be implemented. As the very first and essential step, the speaker proposed conducting an audit and sequestration of state expenditures. He emphasized that in the current global inflationary environment, even a two-year pause, during which the indexing of public sector costs would be abandoned, would offer the possibility of achieving a new balance purely on a technical level. Finally, the speaker questioned the political readiness to take such radical steps.
Majandusekspert Raivo Vare
AI Summary
The speaker emphasized the need to avoid state-driven inflation stimulation and called for adherence to strict fiscal logic, according to which borrowing should only be undertaken for investments, not to cover current expenditures. Currently, this principle cannot be maintained, which makes the emergence of a deficit inevitable given the continuous growth of costs. Furthermore, high inflation is a serious competitive factor that must be examined separately. Since this is a complex issue, there is no single silver bullet solution; rather, a whole series of measures is required. As an essential first step, the speaker proposed conducting an audit and sequestration of state expenditures. He stressed that in the current inflationary global environment, even a two-year pause, during which the indexation of public sector costs and similar practices would be abandoned, would help achieve a purely technical new balance and create a foundation for moving forward. Finally, he questioned the political will to take these stringent steps.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare emphasizes that the state should not stimulate inflation itself, and since this is a complex issue for which there is no single silver bullet, several steps must be taken to tackle the deficit and rising costs. As a crucial first step, he proposes an audit and sequestration of state expenditures, which should also include abandoning public sector indexation, in order to achieve a new budgetary balance within two years by directing borrowed funds solely towards investments, not current expenditures.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare advised against personally stimulating inflation, emphasized that loans should not be taken out for current expenses but only for investments, and recommended an audit sequestration—a two-year pause coupled with abandoning public sector indexation.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Lauri Läänemets.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets expressed agreement with the presenter's viewpoints but regretted the absence of key decision-makers in the hall. He then asked the presenter to specify what concrete conclusions Estonia should draw in light of the global changes resulting from the retreat of globalization, changes which are strongly affecting the country.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets inquired about the retreat of globalization and requested that conclusions be drawn regarding what Estonia should do in response, given that global changes perhaps affect us more significantly than domestic ones.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
The Honorable Member of Parliament (Riigikogu) began their address by supporting the presenter's views, but regretted the absence of those individuals who should be most concerned with and attentive to the proposed changes. The primary focus subsequently shifted to the topic of deglobalization, regarding which a more thorough clarification was sought. The speaker stressed that while the presenter had thoroughly discussed domestic changes and the conclusions drawn from them, global processes are at least as important, if not more influential, for Estonia. Consequently, the presenter was requested to outline specific conclusions and key actions that Estonia should undertake and factor in, given the ongoing deglobalization.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare discussed global changes, noting that the existing rules of the game are shifting, the technological leap is rapid (AI, quantum computers), Europe is on the defensive, and we face a double burden—national defense, competitiveness, and the green challenge—which necessitates starting to make choices.
Majandusekspert Raivo Vare
AI Summary
Economic expert Raivo Vare emphasizes that Estonia is facing several critical and simultaneous challenges: changing global geo-economic rules that put small states under pressure; an extremely rapid technological leap (artificial intelligence, quantum computers) that Estonia is not sufficiently keeping up with and which threatens vital systems such as X-Road; the need for strategic forecasting in the energy sector; and the general decline in European competitiveness, which creates a double threat for Estonia as a peripheral region. Consequently, Estonia must start making choices between the priorities of national defense, economic well-being, and the green transition, as pursuing all three goals equally is no longer feasible.
Majandusekspert Raivo Vare
AI Summary
The speaker emphasizes that this is an extremely significant topic, as the existing international rulebook, both geopolitical and geo-economic, is rapidly changing. This particularly threatens small states like Estonia, which lose out under pressure from power centers but gain through multilateral cooperation. Furthermore, we are threatened by a massive technological leap. Despite Estonia's reputation in the field of technology, we are actually falling behind. The use of AI in financial markets is already a reality, and the quantum computing capabilities emerging within the next decade endanger our existing technological solutions, including X-Road and identification systems. The state must be prepared for this to prevent the collapse of critical infrastructure. Changes occurring in the energy sector also require a sharp eye, as we lack the ability to significantly influence them. However, we must avoid expensive decisions lasting 15–20 years that quickly become obsolete. Therefore, it is essential to engage in prognostics, considering both market and technological development scenarios. Europe as a whole is currently in a defensive position, losing competitiveness on a global level. Estonia, being on the periphery of Europe, faces a double burden and double threat, because in a crisis situation, the organism contracts, and peripheral areas often become marginalized. The difficult situation regarding European competitiveness is also evidenced by the Draghi and Letta reports, the recommendations of which Estonia, however, neither sufficiently discusses nor lobbies for. The speaker highlights three major challenges that Estonia and Europe face simultaneously: national defense (the next 5–7 years), competitiveness and economic well-being, and the green transition. Since addressing all three priorities equally is no longer feasible, Estonia must start making choices and setting priorities.
Esimees Lauri Hussar
AI Summary
The rapporteur, who had addressed the Honorable Riigikogu, concluded their presentation, and the subsequent question-and-answer period had also ended. Before proceeding to the next item on the agenda, however, it was necessary to hold an important procedural vote concerning the extension of the Riigikogu session's working hours. The initiator of the debate had put forward a proposal to extend the session should the current discussion not conclude by 1:00 PM. According to the proposal, the session was to continue until the agenda item was exhausted, but no later than 2:00 PM. The Riigikogu was asked to take a position and vote on this proposal for the extension of working hours.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the presenter, noted that the question period was finished, and announced the need to hold a vote on extending the session until 2 PM, should the discussion not be concluded by 1 PM.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded the question-and-answer round and put the proposal by the initiator of the debate to a vote before the Riigikogu: to extend the sitting until the agenda item was exhausted, but no later than 2 PM.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced the voting result (19 in favor, with none against or abstaining), the extension of the sitting until 2 PM, and gave the floor to Tanel Kiik to pose a question.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
A deputy, addressing the Speaker of the Riigikogu, raised a pointed question regarding the low turnout for participation and voting during the parliamentary session. While 66 deputies had registered for the sitting, a mere 19 took part in the current vote. The questioner sought clarification on what had caused such a massive absence, asking whether something had happened to the two-thirds who were supposed to be present, or if they had simply missed the session’s summons. The deputy emphasized that issues concerning rising prices, economic competitiveness, and the public's ability to cope should be priority topics for every member of the Riigikogu. He argued that since sessions are planned well in advance, dozens of deputies—particularly those from the coalition ranks—should not have activities more pressing than participating in parliamentary work. Consequently, the Speaker of the Riigikogu was demanded to provide an explanation as to why deputies did not deem it necessary to attend the session and vote, thereby creating the impression of misplaced priorities.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik has addressed the Speaker of the Riigikogu, expressing concern over the extremely low attendance at the sitting—only 19 out of 66 registered members participated in the vote. He asks why two-thirds of the MPs, particularly members of the coalition, are absent when priority issues such as rising prices and economic competitiveness are being debated.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik asked the Speaker of the Riigikogu why only 19 of the 66 registered members participated in the vote, especially considering the importance of rising prices and the economy.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar confirmed the unanimous results of the previous vote, announced the extension of the session until 2 PM, and subsequently gave the floor to Peeter Raudsepp, the director of the Estonian Institute of Economic Research, who had been waiting for the opportunity to deliver his report.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar noted the unanimity of the voting result, announced the extension of the session until 2 p.m., and next invited Peeter Raudsepp, the director of the Estonian Institute of Economic Research, to the podium.
Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
The Director of the Institute of Economic Research, Peeter Raudsepp, presented a thorough analysis of Estonia's competitiveness, noting that we have fallen by 11 places in four years and that Latvia and Lithuania have overtaken us. He emphasized that due to rising prices, it is difficult for our businesses to compete, and 60% of the population has seen their lives worsen over the last four years.
Eesti Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp, the director of the Estonian Institute of Economic Research, analyzed Estonia's position in the international competitiveness ranking, highlighting a four-year downward trend (currently 33rd place), during which the Baltic neighbors have either surpassed Estonia or drawn close. The main reasons for the decline are the poor state of the economy, rapid inflation, and slow innovation, which have made Estonian products expensive and reduced the GDP per capita in purchasing power parity. According to the consumer barometer data, price increases have worsened the economic situation of households across all income groups, especially for lower-income families, over 20% of whom are using savings or living in debt to make ends meet. Therefore, it is essential to revitalize the economy and improve people's purchasing power through real measures, while avoiding additional taxation of the economy.
Eesti Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
The presentation focused on Estonia’s position in the IMD international competitiveness ranking and consumers’ ability to cope amid rapid price increases. Studies by the Estonian Institute of Economic Research show that Estonia’s competitiveness has been declining for four years, resulting in a total loss of 11 places. Although the country managed to maintain its position last year (33rd place), neighbors Latvia and Lithuania have made significant gains; Lithuania has overtaken Estonia, and Latvia has come close. The main reason for the decline is the state of the country’s economy, where we have dropped about 30 places, reaching 57th place. The decline is particularly drastic in real GDP growth (62nd place) and consumer price increases (a drop of 40 places), reflecting Estonia’s standing among the highest inflation indicators in the European Union. High inflation, rapid growth in salary expectations, and slow innovation have led to a situation where selling goods and services produced in Estonia has become difficult on both domestic and foreign markets. Entrepreneurs highlight the sluggishness of competitiveness and innovation as the main problems hindering economic development. Furthermore, the development of Estonia's prosperity is worrying: based on comparable purchasing power, Estonia's GDP per capita has fallen from 85% to 79% of the EU average between 2019 and 2024, while Latvia and Lithuania have improved their indicators. Therefore, the claim that life in Estonia has never been as good as it is now does not hold true. Consumer barometer data confirms the deterioration of the economic situation in all income quartiles since 2021, with the decline in the ability of lower-income groups to cope being the sharpest. The probability of saving has fallen in the three lowest quartiles, and the share of families using previous savings or living on debt to make ends meet has grown above 20% and may reach 25% by the end of the year. The presentation concluded by emphasizing that improving economic indicators requires the implementation of real positive changes that would revitalize the economy. The continuous taxation of a declining economy has proven to be a mistake that has deepened problems, especially through the reduction of people's purchasing power. Solutions are needed that would improve people's financial resilience and restore the vitality of the economy.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the presenter and announced the start of the subsequent question-and-answer session, which would last up to 15 minutes, giving the floor to colleague Peeter Ernits to ask the first question.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the presenter, announced the start of the 15-minute question and answer session, and gave the floor to colleague Peeter Ernits to ask the first question.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits commended the presentation but contrasted it with the optimistic "prosperity budget" presented by the Prime Minister, asking the presenter to provide their own assessment and characterization of the recently submitted state budget.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits asked what to call the "prosperity budget" presented by the prime minister, given that the presenter's assessment was something else entirely.
Eesti Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp, the Director of the Estonian Institute of Economic Research, is refraining from directly assessing the budget, but he expresses deep skepticism regarding the promises of economic growth and prosperity. He notes that these promises are nothing new, given that previous forecasts—such as the Bank of Estonia's projected 4.4% growth for the current year—have failed to materialize.
Eesti Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
The speaker does not wish to comment directly on the budget; instead, he focuses on the economic forecasts and promises. He notes that promises of economic growth and the emergence of prosperity are nothing new, pointing out that similar projections have been heard for years now. The speaker cites, for example, the Bank of Estonia's earlier forecasts, which are documented in a matrix he holds. He stresses that, for instance, 4.4% economic growth was projected for the current year. Consequently, he views the promises of economic growth for the coming year with skepticism, as they are no different from previous, often unmet expectations.
Konjuktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp, the director of the Institute of Economic Research, was reluctant to directly assess the budget, but pointed out that promises of economic growth and prosperity are nothing new—for example, the Bank of Estonia had forecast 4.4% economic growth for the current year.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Lauri Laats.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats noted that this isn't the first time we've heard promises of economic growth—the Bank of Estonia had forecast 4.4% economic growth for the current year, but promises of growth are certainly nothing new.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker delivered sharp criticism regarding the government's economic policy, pointing out that budget promises and economic growth forecasts have been consistently overly optimistic over the last four years and ultimately failed to materialize. It was emphasized that the livelihood problems faced by the populace began to worsen specifically after the Reform Party came to power, a situation which the speaker considers to be the prevailing reality. Referring to the data presented in the report, the speaker highlighted the divergent development paths of the Baltic states, asking what constitutes the success story of Latvia and Lithuania and what factors are improving their situation compared to Estonia. Furthermore, explanations and forecasts were demanded regarding how the government plans to mitigate the lack of capital availability for businesses and resolve the acute shortage of skilled labor.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats praises the presentation but sharply criticizes the economic promises made by the government over the last four years, emphasizing that people's well-being has deteriorated during the Reform Party's time in power. He also requests an explanation regarding the success story of Latvia and Lithuania, and inquires how they plan to mitigate the problems businesses face concerning capital availability and the shortage of skilled labor.
Eesti Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp, the director of the Estonian Institute of Economic Research, analyzed the current state of the Estonian economy, concluding that despite desired goals (such as living more prosperously than neighbors and increasing competitiveness), the country has slipped into stagnation. Experts currently rate this stagnation as improving, but still fundamentally poor. He stressed that tax increases and a lack of serious effort in cutting the state budget negatively distinguish Estonia from other countries in a similar economic space, especially since its neighbors are actively implementing cuts and considering reductions in indirect taxes.
Konjuktuuriinstituudi direktor Peeter Raudsepp
AI Summary
The Director of the Estonian Institute of Economic Research, Peeter Raudsepp, assessed that the issues concerning capital and skilled labor have become secondary due to the current situation, noting that we have fallen into stagnation. He added that what distinguishes us from others are tax increases and insufficient attempts to cut the state budget, recommending, for instance, a reduction in the VAT on food.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar gave the floor to Tanel Kiik.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik questions the government’s claim that tax changes favoring the wealthy will channel money into the Estonian economy, asking whether the funds received by the highest-income quartile won’t instead remain in savings, foreign investments, or travel, and suggesting that increasing the incomes of low-wage earners would be more effective for stimulating the economy.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik asks the waiter/waitress whether the tax changes that increase the incomes of the wealthy will bring money into the Estonian economy, or if it will instead go into savings and foreign investments.
Eesti Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
In presenting their views, the speaker relied on extensive survey data, which is collected monthly from a thousand respondents. These graphs and data clearly indicate that in the lower income quartiles—specifically the bottom three quartiles—people's estimated capacity to save is extremely low. The likelihood of saving for these groups is, in fact, highly improbable. Consequently, the speaker stressed that there is absolutely no basis for the fear that individuals in the bottom three quartiles would start saving money en masse by cutting back on consumption. They simply lack the economic means to do so. It is also highly improbable that they would have the resources or opportunities to withdraw or invest this money on a larger scale. In summary, the presenter affirmed that saving and investment opportunities of this kind simply do not exist within the bottom three quartiles.
Eesti Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp, the director of the Estonian Institute of Economic Research, explained, citing monthly survey data, that people in the three lowest income quartiles lack the real capacity and likelihood to save. Therefore, the fear that they would start setting money aside or investing instead of consuming is unfounded.
Konjuktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp, the director of the Institute of Economic Research, explained, citing survey data, that the opportunity for saving is small or improbable in the lower quartiles. Therefore, there is no need to fear that people in the three lowest quartiles would start saving money or moving capital out.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Urmas Reinsalu.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu thanked the speaker for their expert perspective and asked whether the government should have a political target regarding inflation, and whether high inflation constitutes a problem that the state has a duty of care to address.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu thanked the speaker for the competent overview and subsequently posed a question to Mr. Raudsepp concerning the government's role in managing inflation. He inquired whether the state should establish a political target regarding the inflation indicator, and whether high inflation is inherently a problem whose resolution falls under the state's duty of care/due diligence obligation.
Eesti Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
The speaker starts by addressing the question, confirming that a quick, spontaneous response would be yes, but stresses that the situation is more complex than a simple "yes" might suggest. The main problem being highlighted is stagflation. This refers to the stagnation of economic development, which has been ongoing for a long time. In addition to the economic stagnation, the situation is compounded by high inflation. According to the speaker, neither of these factors—neither long-term stagnation nor high inflation—would cause such significant damage to the economy individually, but the combination of the two is what makes the situation particularly painful and difficult.
Konjuktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp, the director of the Institute of Economic Research, replied that the honest answer would be "Yes, of course!" but emphasized that our problem is stagflation—economic stagnation coupled with high inflation—which together cause a particularly large amount of damage.
Eesti Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp, the director of the Estonian Institute of Economic Research, stresses that while the initial answer might be yes, today's economic challenge lies in stagflation—a dangerous combination of long-term economic stagnation and high inflation—which, when combined, causes significantly more damage than the individual problems taken separately.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Priit Sibul.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul explained that it is not sensible to burden a shrinking economy with taxes, and that the objective when reducing the VAT on food should be not only to improve people’s well-being, but also to stimulate the food sector and preserve existing jobs.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Referring to the previous speaker’s position that a shrinking economy should not be burdened with taxes, Priit Sibul specifically asks about the impact of the potential reduction of VAT on foodstuffs, wanting to know how this would affect the competitiveness of the Estonian food industry, and not just the final price.
Konjuktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp, the director of the Institute of Economic Research, agreed that nobody is hearing about an economic miracle in Latvia and Lithuania, but noted that smart and consistent decisions are being made there. He went on to explain the issues facing the food sector: high inflation and VAT have been reducing retail sales since the first quarter of 2022, which is negatively impacting the entire food industry.
Eesti Konjunktuuriinstituudi direktor Peeter Raudsepp
AI Summary
Peeter Raudsepp, the director of the Estonian Institute of Economic Research, emphasizes that the Estonian food sector has come under multiple pressures, where high inflation and the value-added tax (VAT) on foodstuffs have accelerated price increases and led to a persistent decline in retail sales volumes, which in turn is slowing down the volume of the food industry focused on the domestic market. This situation, which is further exacerbated by agriculture-specific problems, forces consumers to opt for cheaper imports. Therefore, the discussion surrounding the VAT on foodstuffs should aim not only to improve people's livelihoods but also to revitalize the sector, increase production volumes, and prevent job losses.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded the Q&A session for the previous presentation, thanking the speaker, and then gave the floor to economist Heido Vitsur, whose presentation is scheduled to last 15 minutes.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the speaker, noted that the time for questions was over, and invited economist Heido Vitsur to the podium for his 15-minute presentation as the next speaker.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur conducted a thorough analysis of price increases in Estonia, noting that in 2022, prices rose by 19.4% compared to the European Union average of 9.2%. He also pointed out that we currently rank fourth or fifth in Europe in terms of food expensiveness, even though our productivity and wages are significantly lower than those in comparable countries.
Majandusteadlane Heido Vitsur
AI Summary
The speaker began by analyzing the sharp price increase in the Estonian economy during 2021–2022, emphasizing that 2022 was the culmination, when Estonian inflation (19.4%) significantly exceeded the EU average (9.2%). As a result, by 2023, Estonia reached the average European price level, while simultaneously lagging far behind countries with similar price levels in terms of GDP and labor productivity. The high cost of foodstuffs is particularly worrying, having increased to such an extent that Estonia is now likely 4th or 5th in Europe for food prices, surpassing even Malta. Furthermore, Estonian wages and pensions are 2.2 and 3.3 times lower, respectively, compared to Austria (where prices are only 2–3% lower). The main problem lies precisely in the mismatch between Estonia’s productivity, wealth, and price level. The high price level hinders the competitiveness of Estonian businesses both in the global market and the domestic market, resulting in Estonia losing market share (as noted by the IMF). If industrial production and export capacity are not significantly increased, Estonia faces an economic slowdown after the stimulus provided by borrowed funds ends. The speaker also points out that GDP growth, for example through military spending (so-called "military Keynesianism"), may not always translate into increased national prosperity, but might instead boost demand and price pressure. The price increase has affected residents' livelihoods unevenly: rising food and housing costs have made life considerably harder over the last five years for 60% of the population, for whom food is the largest expenditure item. Meanwhile, the wealthier deciles (approximately 2–2.5 deciles) are living better than ever, spending large sums on travel, and current tax policy changes will further improve their lives. To move forward, it is essential to initiate a serious tax debate, as the current tax structure is too rigid and does not allow for a sensitive response to the rapidly changing environment. According to the IMF report, lowering the VAT on foodstuffs is not expedient; it would be much wiser to transition to a progressive income tax to improve both tax flexibility and social justice.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur analyzed the decline in the competitiveness of the Estonian economy, which stems from a lag in productivity and wealth compared to the average European price level. This decline is particularly driven by the high cost of foodstuffs, which has negatively impacted the financial coping ability of 60% of the population. Vitsur emphasized that this discrepancy represents the biggest question mark for Estonia’s future, making it imperative, based on IMF recommendations, to initiate a serious tax debate and consider transitioning to a progressive income tax system to improve the flexibility of the tax structure.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the presenter for the report, opened the floor for questions, and gave the floor to his colleague Peeter Ernits to pose the first question.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the presenter and gave the floor to his colleague Peeter Ernits to ask the first question.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits asked the same question he asked Urmas Reinsalu: why is inflation in Estonia still the highest among the three frontline countries at 6.2%, compared to 2.2% in Finland and 4.1% in Latvia.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits points out that although Estonia, Finland, and Latvia are in a similar geopolitical situation—i.e., so-called frontline states—Estonia's inflation (6.2%) is significantly higher compared to its neighbors. He then asks what this difference stems from and why the neighbors manage to operate differently economically.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur emphasizes that the primary, visible reason for the price increase in Estonia is the rise in consumption taxes. Meanwhile, the situation in other countries is different, owing both to the absence of VAT increases and to different competitive conditions that prevent merchants from raising prices so freely. He also points to a warning from the International Monetary Fund (IMF) that while consumption taxes are neutral, there is a limit to their implementation.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur explained that other countries operate differently because they didn't experience the same VAT hike we did, and they have different competitive conditions in trade, but the reason visible to the naked eye is certainly the rise in consumption taxes.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Reili Rand.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Reili Rand thanked the chair of the session and the rapporteur, and noted that it was behind them.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur announces with a short, joyful exclamation that he has either noticed something or understood something.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur noted briefly that he sees.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
A pressing issue regarding the regional domestic divide and inequality in Estonia was raised before the Riigikogu (Parliament). It was emphasized that value added and wage levels differ significantly across counties, indicating a deepening economic differentiation within the country. The speaker sought clarification on the government’s stance on this situation and what recommendations are being offered to mitigate economic inequality. The situation in Hiiumaa, where the median wage is barely 1,400 euros, was highlighted as a specific example. A particularly unfortunate fact cited was the example from Statistics Estonia, where Hiiumaa’s contribution to the country’s Gross Domestic Product (GDP) was actually rounded down to zero. This example clearly illustrates the economic vulnerability of regional peripheries and their unequal treatment in national statistics. Given this widespread problem, which extends far beyond just one county, the government or the responsible official was asked for specific recommendations and measures on how to effectively reduce regional inequality and the domestic divide in Estonia, and how to ensure that the contribution of all counties is properly accounted for in the national economy.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Reili Rand inquired about the regional domestic divide, citing Hiiumaa's median wage of 1400 euros as an example, and requested recommendations for reducing regional inequality.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Reili Rand highlights the sharp internal regional divide, emphasizing the significant differences between counties, such as Hiiumaa, in terms of added value and wage levels, and requests recommendations on how to reduce this inequality.
Majandusteadlane Heido Vitsur
AI Summary
The economist Heido Vitsur explained that efficiency is a function of consolidation, and a region with 2 million inhabitants is considered competitive. However, if we want to cover life across the whole of Estonia, this must be supported by political measures, and we must initiate a genuine tax debate involving regional policy tax differentiations.
Majandusteadlane Heido Vitsur
AI Summary
The speaker emphasized that economic efficiency is directly linked to consolidation. He highlighted that globally, a region with a population of about two million people is considered competitive, as this scale ensures all the necessary factors for creating a competitive economy. However, he does not consider Tallinn to be such a center. If Estonia wants life to be viable across the whole country, similar to Switzerland for example, then this must be pursued and supported through targeted political measures. The current uniform tax system without exceptions, however, hinders the achievement of regional policy goals. To be progressive and successful, Estonia must initiate a genuine, well-considered tax debate. This debate must absolutely take into account the possibilities of regional policy tax differentiations. Such differentiations are essential to stimulate investments specifically in peripheral areas, such as the islands or Southeast Estonia, because without specific measures, regional development cannot be expected.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur stresses that a competitive economy requires sufficient consolidation. He argues that to achieve regional policy objectives and sustain life across Estonia, the current uniform tax system must be scrapped. Instead, he calls for initiating a genuine tax debate aimed at creating regional tax differences to stimulate investment in peripheral areas, such as the islands or Southeast Estonia.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Urmas Reinsalu.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu thanked the speaker for the compelling presentation and asked them to elaborate on the slides that had not been covered: "Historical Income Tax Rates" and "Riigieelarvest ja hinnatõusust."
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu thanked the presenter for the compelling presentation and requested that, during the response session, they definitely elaborate on two inspiring slides that had not been covered: "Historical Income Tax Rates" and "The State Budget and Inflation."
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur explained the history of US income tax starting from the Civil War, stressing that President Reagan refused to introduce a flat income tax because it was not progressive enough and taxed poor people too highly, and that the IMF recommends considering the principle of fairness when dealing with taxes.
Majandusteadlane Heido Vitsur
AI Summary
The speaker illustrates the flexibility and needs-based nature of tax policy using the history of income tax in the United States, which stretches back to the Civil War. The historical overview shows that the tax burden is directly linked to national needs: a higher income tax is implemented during wartime, while peacetime allows for managing with significantly lower rates. Thus, the application of taxes has always been adaptable according to necessity. In addition to economic expediency, the speaker emphasizes the indispensable importance of the principle of fairness when designing the tax system. This position is also supported by the example of President Ronald Reagan, who, despite his market-based reforms, rejected the flat income tax recommended by economics professors at Stanford University. Reagan believed that this proposal was not progressive enough and would tax the poor too highly, deeming the abandonment of graduated rates unfair. Therefore, when assessing the economic expediency of taxes, the principle of fairness must always be kept in mind, a point also confirmed by the referenced IMF report.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur presented the history of income tax in the United States, noting that tax rates have historically been dependent on the country’s needs, particularly during wartime. He emphasized that even President Reagan, who implemented market reforms, deemed the abandonment of a progressive income tax unfair, arguing that it would have taxed the poor too highly. Vitsur highlighted that the principle of fairness is just as crucial as economic expediency in tax policy—a point also confirmed by an IMF report.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Tanel Kiik.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik asks the server if the government has consulted him regarding economic and tax policy, and whether they require expert assistance.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik criticizes the Government of the Republic, arguing that it appears to be receiving input on the economy, tax policy, and people's livelihoods from entirely different experts. He claims the government is ignoring three years of sustained criticism regarding its direction and its denial of concerns over the cost of living. He then asks the waiter directly whether the government has consulted him regarding proactive intervention in the energy crisis, instead of waiting for economic growth.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur observes that the reports delivered by the Prime Minister and Urmas Reinsalu prompt the question of whether they are even living in the same country. He stresses that Estonia lacks broad political discussion and a culture of communication, primarily because ministers do not customarily discuss policy with political parties and organizations—and this, he argues, is the nation's core issue.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur discussed his August conversation with the prime minister, emphasizing that Estonia lacks the tradition of ministers constantly engaging with political parties and business organizations—our problem is that we neither communicate nor listen to each other.
Majandusteadlane Heido Vitsur
AI Summary
The speaker began their address skeptically, expressing doubt as to whether the Prime Minister and Urmas Reinsalu were even living in the same country, judging by the presentations. He pointed out that although he personally discussed pricing issues with the Prime Minister in August, the government's grasp of reality is questionable. The speaker stressed that he himself constantly and extensively writes about the topic of VAT on foodstuffs and prices, underscoring the issue's urgency and importance. The main criticism, however, focused on Estonia's political culture. The speaker emphasized that Estonia lacks the custom of broad, comprehensive debate, which is standard practice in other countries. He contrasted this with other nations where the ministers' primary role involves continuous communication with political parties and business organizations to discuss whether policy changes are necessary or not. In the speaker's view, the core problem in Estonian politics is precisely that the parties fail to communicate, do not talk to each other, and do not listen to one another. This absence of communication and mutual listening is, in his opinion, a systemic flaw.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Priit Sibul.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul criticized the rapporteur for failing to address the issue of excessive commercial real estate—a problem the Prime Minister had highlighted within the context of rising prices. He then asked how the government intends to regulate this situation, while also pointing out that the planned increase in VAT will further exacerbate inflationary growth.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul inquired about the prime minister's alleged plan to regulate the commercial real estate issue, noting that this problem is being amplified by the increase in VAT, in addition to rising inflation.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
The esteemed speaker addressing the Riigikogu began their address by thanking the presenter and referencing a previous conversation with the Prime Minister, which concerned communication that took place in August and the presenter's intention to now "go write home." The speaker highlighted a problem mentioned by the Prime Minister in the context of price increases: the excessive amount of retail space in Estonia. He expressed his bewilderment that the presenter had not addressed this topic in their presentation. The speaker emphasized that it remains unclear to him how, or if, the Prime Minister plans to regulate this issue of commercial space, given the PM's own stance regarding their oversupply. In addition to rising inflation, which is already a problem in itself, the speaker sees the situation being exacerbated by the government's planned VAT increase, which, in his estimation, will deepen economic difficulties.
Majandusteadlane Heido Vitsur
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Economist Heido Vitsur voiced his complete agreement concisely and specifically.
Majandusteadlane Heido Vitsur
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Economist Heido Vitsur agreed briefly.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul, in the context of the VAT on food items, asked about final prices and competition within the food industry, and requested an elaboration of the ideas that are planned to be documented.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul requests that the recipient, who is preparing to write, clarify their position regarding the impact of VAT on foodstuffs, emphasizing the necessity of addressing the topics of both final consumer prices and the competitiveness of the food industry.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur is a fervent supporter of the Prime Minister's stance that Estonia has excessive commercial space per capita. He argues that this, coupled with unreasonably long opening hours, generates substantial maintenance and heating expenses. Vitsur emphasizes that these costs could be significantly curtailed through regulation, either via legislation or mutual agreements, thus eliminating unnecessary labor during holidays and overnight hours.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur agreed with the prime minister on the issue of commercial spaces, explaining that larger spaces result in higher operating costs, and noting that elsewhere in the world, trade unions are fighting against people being forced to work night shifts.
Majandusteadlane Heido Vitsur
AI Summary
The speaker expressed full support for the Prime Minister's comments on commercial real estate, stressing that Estonia has far too much retail space per capita—more than double the figures seen in Finland. According to the speaker, this oversupply is directly linked to high operating costs, a fact that people seem to be completely failing to grasp. He clarified that the true cost doesn't stem so much from the building rent, which is cheap, but rather from heating expenses and other overheads, such as cleaners' salaries. The speaker drew a comparison to residential properties, where heating costs for a larger area are proportionally higher, illustrating why excessive commercial space sends costs soaring. Besides the sheer quantity of space, unnecessarily long opening hours also inflate costs. While trade unions elsewhere in the world fight to ensure people aren't forced to work unnecessarily at night or during holidays, in Estonia, shops are often open around the clock, even when there are no customers. The speaker stressed that this is socially irresponsible, and this situation can and must be regulated through laws or agreements to keep costs in check. Therefore, the Prime Minister was absolutely correct on this issue.
Esimees Lauri Hussar
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Chairman Lauri Hussar gave the floor to Lauri Laats.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats pointed out that food prices have risen by 9.2% and the general cost of living by 6.2%, adding that food price growth in Europe largely did not occur during that period.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats stressed that food prices in Estonia have climbed by a whopping 9.2% over the year, and the cost of living is up more than 6%, noting at the same time that, on average, food price hikes were largely absent across Europe during that same period.
Majandusteadlane Heido Vitsur
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The economist Heido Vitsur provided an extremely laconic overview of the events, confining himself to the acknowledgement that something had, however, taken place.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur mentioned food briefly.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats asked about the 9.2% figure concerning the significant upward trend in food prices.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats is expressing concern over the rising cost of food, questioning what is driving prices to a 9.2 percent growth trend—an increase he considers to be very significant.
Majandusteadlane Heido Vitsur
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Economist Heido Vitsur explained that the significant price hike was caused by the tax policy decision to raise the value-added tax (VAT), even though we lack the option to raise the income tax rate for the wealthy, because all taxes are tied together in one complicated knot.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur stresses that the significant price increase is primarily due to Estonia's restrictive tax policy choice, which has effectively constrained the state. Because corporate and individual income are interconnected within the system, it is impossible to raise the income tax rate for the wealthy, meaning the only quick solution left is to increase consumption taxes (Value Added Tax/VAT).
Esimees Lauri Hussar
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Chairman Lauri Hussar gave the floor to Riina Solman.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman highlights the ongoing drop in purchasing power and the reduction in domestic consumption, asking the presenter how the situation can be halted and why Latvia and Lithuania have managed to better foster economic growth and prosperity, which suggests that something is being done incorrectly in Estonia.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman asked how to stop the decline in purchasing power and boost domestic consumption, noting that Latvia and Lithuania have managed to maintain better economic growth.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur emphasizes that since previous mistakes have already caused irreversible changes, we cannot start over anymore. Instead, we must avoid repeating them in the future, focusing on boosting the economy's innovativeness and efficiency, and thoroughly rethinking the tax system.
Majandusteadlane Heido Vitsur
AI Summary
Economist Heido Vitsur stressed that the mistakes that have been made cannot be undone, and the focus must now be on boosting the economy's innovativeness and reviewing the tax system.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the rapporteur and opened the debate, inviting Lauri Laats, speaking on behalf of the Riigikogu Centre Faction, to the floor, and granted him an additional three minutes.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats, citing expert reports, sharply criticizes the government's tax policy, particularly the cascade of consumption taxes, which he holds directly responsible for the decline of the Estonian economy, the largest rise in food prices in Europe, and the deterioration of the quality of life for 60% of the population. He stresses that the current system is unfair, reduces purchasing power, and requires immediate change because it disproportionately taxes lower-income individuals, all while public trust in the government has plummeted to an extremely low level.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats thanked the experts, criticized the time constraints, and compared the Prime Minister's "prosperity budget" with the experts' assessments, emphasizing the negative impact of tax hikes on people's livelihoods and on the rise in food prices, which is the largest in Europe at 9.2%.
Esimees Lauri Hussar
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Chairman Lauri Hussar specified that Tanel Kiik was taking the floor on behalf of the Social Democratic Party faction and under authorization.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik requests three minutes of extra time.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar granted three minutes of extra time.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik criticized the coalition for its absence during a crucial economic discussion, accusing the government of raising taxes on low-income earners while favoring the wealthy, and urged them either to heed expert advice or resign.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik sharply criticized the governing coalition, which walked out of the chamber after the budget presentation, thereby demonstrating indifference toward the expert debate concerning rising prices and tax policy. He argues that the coalition’s chosen "austere right-wing" direction is unjust, as it taxes the middle class while favoring the wealthy (via a tax handout exceeding 100 million euros), all while critical areas, such as special needs care, remain underfunded. The speaker warned that this refusal to heed expert advice and correct unfair priorities will lead to a continued erosion of their support base, demanding that the government either change its policies or resign.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speaker began with criticism directed at the coalition, which had left the chamber after the Prime Minister's budget presentation, thereby demonstrating indifference towards the debate concerning price increases, tax policy, and people's livelihoods. In the speaker's estimation, this behavior reflects the coalition's conviction in the correctness of its chosen path, which he termed a "harshly right-wing policy." This policy essentially entails the aggressive taxation of low-wage earners and the middle class, while simultaneously easing the tax burden on the wealthiest. The coalition disregards the views of experts and the opposition, operating under the belief that a rising tide lifts all boats, forgetting those who are already underwater. The speaker highlighted specific examples of the budget's unfair priorities. He stressed that only 4.2 million euros are allocated for wage increases and service improvements for special welfare workers (when the actual need is 50 million), while over 100 million euros are found to alleviate the tax burden on the wealthiest 10%. Such choices, which prioritize the affluent and ignore the urgent needs of social, healthcare, and regional policy, are unjust and fail to meet societal expectations. This policy has led to a drastic decline in support for the coalition (from 51 mandates to 14%), indicating that the government is moving into an increasingly narrow tunnel, losing its credibility. Finally, the speaker called on the government to listen to experts and acknowledge that the choices made in recent years have been wrong, as they have neither delivered the expected economic growth nor restored the public's trust. He emphasized that the 86% of the population who do not support the government's policy are factually correct. If the government cannot vigorously correct its policy and take into account the genuine needs of society, it should resign.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar conveyed the recommendation to review the session materials (the transcript and video recording) and introduced the next speaker, Urmas Reinsalu, the representative of the Isamaa faction, who was also granted three minutes of extra time at his request.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar recommended reading the transcript and watching the video recording, and granted Urmas Reinsalu three minutes of additional time to speak on behalf of the Isamaa faction.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu thanked the experts for their clear assessments, spoke about the impact of swine fever on businesses, and stressed the need for a new paradigm and optimism, expressing hope for change and an alternative to the current policy.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
The speaker began by thanking experts Vare, Raudsepp, and Vitsur for their clear, rational, and objective standpoints, stressing that their diagnosis of the situation and subsequent recommendations should remain confidential between the nation's leaders and the Estonian people. Criticism directed at the government centered on its impotence and inability to react adequately to crises. The swine fever crisis was cited as an example, where the government's indecision (its refusal to compensate 700,000 euros for products slated for destruction) resulted in the closure of Frank Kutter and the loss of 44 jobs, translating into 2 million euros in lost tax revenue for the state. This state of confusion and mixed messaging has also forced other companies, such as Maag, to lay off employees, citing the government's failure to plan for the situation. Economically, we stand on the threshold of a new paradigm, where the old model no longer meets expectations, but the new one has yet to materialize. Experts highlighted the extensive decline in production and ongoing export difficulties. The export growth referenced by the Prime Minister is, in the speaker's view, misleading, as it largely constitutes re-export to Central Asian countries, the sudden surge of which is driven by Russian sanctions. Mr. Raudsepp believes that the economy is dominated by stagnation, which is eroding people's purchasing power and optimism. What is needed is the courage to experiment and recognize Estonia's flexible position as a small state. The speaker articulated the task: to restore optimism and the "sense of community" (meie-tunne) to society in order to return Estonia to a path of growth. This requires concrete steps and a broad-based dialogue involving entrepreneurs, experts, and discerning citizens, rather than mere political platitudes. The current stressful environment, stemming from both crises and errors in state governance, must be replaced with hope. Isamaa is preparing for the next political period, aiming to correct past mistakes and offer an alternative to current policies, confirming that change is indeed possible.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu thanks the experts for their clear economic analysis, but sharply criticizes the government’s paralysis and confusion in resolving crises (referencing the swine fever outbreak and layoffs), which has led to economic stagnation and the loss of public optimism. He emphasizes that Estonia is on the threshold of a new paradigm but needs the courage to experiment and take concrete steps to restore the "sense of community" (or "we-feeling") in society and the hope for achieving new growth.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offered his thanks and then invited Peeter Ernits to the podium next.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits praised today's "meaty discussion" in the Riigikogu and criticized the Prime Minister's "prosperity budget," comparing Kristen Michal's situation to the stagnation era of Leonid Brezhnev, and called on people to come to Toompea to express their views.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits calls the "prosperity budget" presented by the prime minister an outright, reckless lie, arguing that experts are saying the exact opposite and that Estonia has actually slipped into deep stagnation, reminiscent of the Brezhnev era. He highlights that the country suffers from record inflation compared to its neighbors and diminished purchasing power, noting further that the budget only offers benefits to the wealthiest quarter of the population. The speaker is convinced that the coalition will simply steamroll this "rotten" draft bill through, ignoring the opposition's proposed amendments.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits sharply rejects the government’s claim of a "prosperity budget," instead labeling it a budget of deep stagnation reminiscent of the Leonid Brezhnev era. He stresses that this plan serves only the wealthiest quarter, especially considering that Estonia’s economic indicators—inflation in particular—are record-poor compared to neighboring countries. He expressed pessimism that the coalition will simply ram this "rotten" budget through like a steamroller.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asked if additional time was wanted.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits agreed to a couple of minutes of extra time.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar requested three minutes of extra time.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits criticized the coalition and called on people to come to Toompea to express their opinion, arguing that Kristen Michal’s time must end and that the prime minister’s talk of prosperity contradicts experts’ assessments of stagnation.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits expresses his conviction that the ruling coalition is ignoring expert warnings about stagnation, living in a completely different world from the Prime Minister's talk of prosperity. He emphasizes that the only solution to stop the "steamroller" and end the era of Kristen Michal/Leonid Brezhnev is for the Estonian people to leave their comfort zones, come out to Toompea en masse, and protest.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar clarified that Tanel Kiik's name had indeed been mentioned, and granted him two minutes for a response.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik clarifies that his recommendation to the government to listen to experts and admit mistakes was well-intentioned, not naive, and criticizes radical approaches in the parliament.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik stressed that his previous address to the government was a sincere and well-meaning suggestion to listen to experts, acknowledge mistakes, and stop passing the buck. He also noted that failing to do so would require the government to resign, and he condemned the radical rhetoric inappropriate for the Riigikogu chambers.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar granted Urmas Reinsalu two minutes for a right of reply, since his name had been mentioned.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu expressed hope for a change that will begin this autumn and materialize no later than March 2027, calling on citizens to take steps to exit the crisis of confidence and bring Estonia back to prosperity—at the ballot box, not with a grenade in hand.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu believes with starry-eyed optimism that change is possible and calls on citizens to use this current moment of crisis of confidence to take unified and determined steps, through the ballot box, to restore Estonia's upward trajectory by March 2027 at the latest, in order to reverse the country’s downward trend in European rankings.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded the discussion of the nationally important issue, thanking the participating experts Raivo Vare, Peeter Raudsepp, and Heido Vitsur, and declared the sitting week closed, announcing that the next meeting will take place the week after next.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked experts Raivo Vare, Peeter Raudsepp, and Heido Vitsur, and announced that the debate on the matter of national importance and the session week had concluded. They will reconvene the week after next.