Agenda Profile: Lauri Laats

The main emphasis is placed on promoting youth employment through tax incentives; the speaker supports the first reading of Draft Legislation 638 OE and seeks to increase the inclusion of young people in the workforce by lowering the social tax for employees up to 19 years old (taxation capped at 20%). The speaker critically highlights the tax policy of the government and the Ministry of Finance, and calls on coalition partners for cooperation and improvement of the draft law. They see a need to improve the economic environment through alternative, simpler taxation and the stimulation of investments. Overall, the approach is policy-driven with a strong emphasis on the youth labor market; the core of the criticism centers on the current coalition's tax policy and the lack of thorough consideration given to the measures.

It uses specific numbers and facts: the youth unemployment rate of 22%, a comparison with Latvian/Lithuanian levels (Latvia 9.1%; Lithuania 16.3%), the number of young people employed ranging from 27,000 to 25,398 between 2022 and 2024, and social tax revenue of 13 million annually. It performs calculations regarding the impact (a planned cost of 5 million for the tax exemption) and discusses the possibilities of creating additional jobs. It cites the discussion held by the Ministry of Finance and the Finance Committee and utilizes numerical evidence.

Primarily, the tone connects emotions and facts with direct expression; it uses an emotional narrative about young people and entrepreneurs, but balances this with data and calculations. It is often critical and rhetorically sharp, sometimes ironic (e.g., regarding the justifications provided by officials), yet simultaneously seeks solutions through cooperation with the coalition. Formally parliamentary, but maintains a strong personal vision and a narrative approach.

The matter arose repeatedly throughout the same day (2025-09-10), with the discussion unfolding across several interventions; it refers to the Finance Committee and the official response; it highlights the written questions and formal inquiries submitted to the Minister of Finance; it stresses the necessity of an inclusive approach involving the new government and coalition; and it demonstrates continued engagement and readiness for further readings and amendments to the draft bill.

The statement is critical of the government's tax policy and the positions held by the Ministry of Finance. It suggests that the draft bill will be voted down by both the opposition and members of the coalition, arguing that the current "steamroller politics" denies young people a fair opportunity. It calls on the coalition to engage constructively and improve the bill, yet simultaneously maintains a strong critical stance while striving to achieve systemic changes at the level of the coalition and the government.

Encourages cooperation between the coalition and the opposition: calls on coalition MPs to contribute their input, promises to collaboratively improve the draft bill and pass it after the second reading; emphasizes the need to jointly create a clear and functional solution for young people, rather than allowing static opposition to persist.

The global/regional context is central: the Baltic states (youth unemployment compared to Latvia and Lithuania), with valuable attention paid to the economic environment of the country and its neighbors; it emphasizes the employment problems characteristic of the Baltic region.

To restore the economic environment, the policy favors targeted tax incentives aimed at increasing youth employment, while criticizing the current tax system and the recent VAT hike. It advocates for a simpler, unified tax system and proposes reducing the tax burden on young people (a social tax of 20% instead of 33%). It raises the need to create additional jobs and stresses that these tax breaks could increase employment volume and reduce youth unemployment. Furthermore, it acknowledges the arguments and risk assessments provided by the Ministry of Finance, but does not suggest long-term fiscal unsustainability.

Focus on youth employment and social security: it notes that health insurance for young people is guaranteed by the state, and that tax incentives could reduce labor costs and improve work discipline; it addresses the specific interests of young people attending school and the concerns about potential misuse raised in counterarguments, but presents its assessment that there is no evidence of abuse.

The objective is the first reading of the Riigikogu decision draft 638 OE and the subsequent proceeding of the draft: presenting cooperation and legislative preparation, and advancing it to the second reading. It emphasizes the need for thorough preparation and coordination of the legislation, and the achievement of youth employment goals in cooperation with the coalition.