NordenBladet —
At its Wednesday’s sitting, the Riigikogu approved five Acts and heard the report for 2022 by Minister of Entrepreneurship and Information Technology on the implementation of the long-term national development strategy “Estonia 2035”.
Minister of Entrepreneurship and Information Technology Andres Sutt said in his report that the main challenge was to achieve strong innovative and responsible growth of the Estonian economy in spite of the negative demographic trend. He explained that the Estonian population was ageing and, by 2035, our population was projected to decrease to 1.2 million people. “Over the next five years, the age group of 20–64-year-olds will shrink by about 31,000 people,” Sutt said.
“A recent report by the Foresight Centre stated that our tax system would no longer withstand the demographic trend and therefore we should begin to introduce new taxes,” the minister added. In Sutt’s words, however, increasing the economic growth potential is a better solution than a tax rise. “This way, the national revenue base will increase and there will be no need to raise the tax burden. Instead of a major redistribution we will be creating greater value, by facilitating innovation and the creation of new high-salary jobs,” Sutt said.
The Minister pointed out that, in the Ministry, the activities related to the solution of that challenge had been divided between three strategic directions, which were digital transition, green transition and innovation transformation. He said that the business environment was added to these three as the fourth axis. “For the triple transition to succeed, the Estonian business environment will need to be the best,” Sutt said. In his report, he discussed thoroughly the activities planned in all these areas.
When speaking of digital governance, Sutt said that a road map to take digital governance to the smart device, that is, digital wallet, would be completed in the second half of this year. “It will also be possible to participate in elections through smart devices in the future. The development work is underway and if the work is completed on time, and all tests are confirming that the solution is sufficiently secure solution and the National Electoral Committee also agrees to it, the first opportunity to vote on a mobile device will be in the next elections to the Riigikogu at the earliest,” he said.
The minister also spoke of the profitability of the e-Residency programme for Estonia, cybersecurity, and the change in trade relations as a result of the COVID pandemic and the energy security crisis. In his words, Estonia should use the opportunity to integrate Estonia more into the supply chains of large Western companies in order to improve our international visibility.
During the debate, Jüri Jaanson took the floor on behalf of the Reform Party Faction, Raimond Kaljulaid on behalf of the Social Democratic Party Faction, Sven Sester on behalf of Faction Isamaa and Peeter Ernits on behalf of the Estonian Conservative People’s Party Faction.
The Riigikogu passed five Acts
The Business Register Act (493 SE), initiated by the Government, provides for the data composition of the Business Register, the procedure for making entries and maintaining the Register, and the supervision and liability.
The business register is a database belonging to the state information system and it is maintained for the purpose of collecting, storing and disclosing information on legal persons in private law that are founded under Estonian law, sole proprietorships operating in Estonia and branches of foreign companies. The e-Business Register is a web platform, through which applications can be submitted to the Business Register, and the data disclosed about legal persons and sole proprietors can be examined. Besides the data in the Business Register, the e-Business Register may also disclose public data available from other databases and through other services.
The purpose of the Act is to harmonise the registration proceedings for legal persons. The register of non-profit associations and foundations will be brought under the Business Register, which will make the registration proceedings simpler and clearer for both the undertakings and the registrar.
Other major amendments include the amendments concerning private limited company because, according to the Act, the minimum capital requirement for private limited company will be eliminated and the list of shareholders will begin to be maintained in the business register. The Act also improves the supervisory options for the registrar by steering legal persons to better meet their reporting requirements. For this purpose, the striking-off of companies from the register for the failure to submit the annual report is simplified and accelerated. The supervisory options of the registrar are extended to ensure the reliability of the data in the business register and the meeting of the reporting requirements by companies. The minimum capital requirement for private limited companies will be eliminated, which will force founders to give more thought to the capital needed for the activities of a private limited company. When a private limited company is founded today, the founders generally opt for the minimum capital provided for in the law, which does not even need to be paid in and which therefore does not say much about the reliability or viability of the company; in the future, when this option is no longer available, the chosen and paid-in share capital will also provide the necessary information about the reliability of the company to third persons. In addition, the current minimum capital requirement of EUR 2,500 has come down in value compared to the time when the amount was initially established in 1995.
The Act creates the option in the e-Business Register to reserve a business name for six months so that it would be possible to better prepare for the founding of a company and a suitable business name would be there once an application is submitted to the Business Register.
83 members of the Riigikogu voted in favour of passing the Act.
The purpose of the Act on the Mandatory Liability Insurance of Health Service Provider (522 SE), initiated by the Government, is to create the systems for patient insurance and compensation for vaccine damages. Patient insurance is the mandatory liability insurance for providers of health care services. The Act provides for the principles and organisation of the liability insurance, as well as the bases for and extent of the damage subject to compensation to the patient. The new system is established with the aim of better protection of the patient and simpler application for compensation.
According to the Act, in the case of a damage event where it would have been possible to prevent health damage in the treatment of a patient, the insurance provider will evaluate the circumstances of the claim. The insurance amount will be up to 100,000 euro per injured patient, and three million euro per whole one-year period of insurance.
The Act also establishes the minimum requirements for the organisation of patient safety. An information analysis system will be established with a view to preventing threat and damage events.
At the same time, the Act amends the Medicinal Products Act and provides for vaccine insurance, or mandatory insurance against vaccine damages, the purpose of which is to create a simplified procedure for compensating to people serious damage to their health due to vaccination.
Besides, an opportunity will be created under the Health Insurance Act to also include in a list of diseases, in addition to the diseases treated with medicines with a valid reference price or price agreement, the diseases in the case of which the prices of the medicinal products used to treat the diseases are formed in joint procurements of medicinal products of the European Commission.
19 motions to amend the Act had been submitted for the second reading. The motions that were supported included the right of employees of the State Agency of Medicines to obtain access, with the consent of the person, to the personal data in the health information system in order that experts could assess the connection between the health damage and the vaccination, taking into account the health data predating the vaccination.
During the debate, Hele Everaus took the floor on behalf of the Reform Party Faction, Priit Sibul on behalf of Faction Isamaa, Siret Kotka on behalf of the Centre Party Faction and Kalle Grünthal on behalf of the Estonian Conservative People’s Party Faction.
76 members of the Riigikogu voted in favour of passing the Act.
The Act on Amendments to the Public Procurement Act and Amendments to Other Associated Acts (491 SE), initiated by the Government, will solve the practical problems that have emerged in the implementation of the Act and will bring the Act into conformity with the European Union public procurement directives. This includes mostly amendments of a technical nature to improve legal clarity and to make the organisation of procurement more flexible.
The amendments concerning the award criteria, the handling of abnormally low tenders and breach of public contracts will make the public procurement procedure as well as the performance of public contracts more flexible for the contracting authorities and entities and will enable the contracting authorities and entities to take better account of the specificities of a particular public procurement and the relevant market situation when setting the public procurement conditions. The amendments concerning self-cleaning and the Single Procurement Document will reduce the workload for contracting authorities and entities as well as the administrative burden for economic operators.
Two of the amendments made in response of criticism from the European Commission are of a technical nature and concern the calculation of the percentage of activities performed on the open market – which is one of the preconditions for cooperation between the contracting authorities and entities – and the level of precision of the description in the procurement documents in the event of innovation partnership.
Two amendments concern allowing negotiations to specify the tender with the successful tenderer in the event of competitive dialogue, which may be very important for the final layout of the terms of a public contract, considering the nature of the procedure. In the course of negotiations and the specification of the tender, the tender and the procurement documents may not be amended and it will have to be ensured that the tenderer is not placed in a more advantageous position compared to other tenderers. The amendment will allow for flexibility, which is crucial for the achievement of a high-quality result where competitive dialogue is used.
The remaining two amendments concern the establishment of award criteria. Their weightings may be expressed by providing a range with an appropriate maximum spread or, where this is not possible for objective reasons, in descending order of importance. Although contracting authorities and entities are used to fixing definite weightings to award criteria, which is also the most transparent and verifiable way and best ensures equal treatment of economic operators in the assessment of tenders, the flexibility to be added may in certain cases contribute to finding the most economically advantageous tender.
During the debate, Jüri Jaanson took the floor on behalf of the Reform Party Faction.
68 members of the Riigikogu voted in favour of the passage of the Act and 15 voted against.
The Act on Amendments to the Building Code and Amendments to Other Associated Acts (430 SE), initiated by the Government, will enable the state to prepare superficies licences for offshore construction in order to submit them on public auction or selective tender. This will concern in particular the development of offshore wind farms and aquaculture. The amendments included in the Act will enable the state, among other things, to contribute to more active generation of offshore wind energy.
One of the aims for initiating the Act was to consolidate the legislation concerning the field and to make it more understandable. At present, the provisions relating to superficies licences are provided in different Acts and therefore the legislation is more difficult to understand for entrepreneurs who are interested in encumbering public bodies of water with structures not permanently attached to the shore.
The Act also makes amendments to the Building Code in the regulation for the principle of safety, refusal to issue a building permit, revocation of a building permit and refusal to issue a use and occupancy permit. The regulation for initiating and issuing a superficies licence is also specified, and the Act is amended in respect of the deadlines for obtaining a building permit and starting building activities.
During the debate, Annely Akkermann took the floor on behalf of the Reform Party Faction.
67 members of the Riigikogu voted in favour of passing the Act and 6 voted against. There was one abstention.
The purpose of the Act on Amendments to the Social Welfare Act and Other Acts (510 SE), initiated by the Government, is to reduce bureaucracy, create legal clarity and contribute to the provision of higher-quality social welfare assistance in the social welfare sphere.
The Act provides for the first time for the definition of long-term care. It means ensuring care to people who need help in arranging their daily life over a longer period of time because their physical or mental abilities or ability to work have diminished. Long-term care includes health care services, care, and services supporting the person’s daily life. The first stage of the amendments to the long-term care system will also include amendment of the Family Law Act with the aim of releasing second-degree relatives from the maintenance obligation. This means that, in the future, grandchildren will not be required to pay for the care of their grandparents.
According to the Act, the local government is given the right to ascertain on their own initiative the need for assistance in adult persons with a moderate, severe or profound degree of disability. Local governments may ascertain on their own initiative a potential need for assistance in persons with a moderate or severe degree of disability, and will have to ascertain a potential need for assistance in persons with a profound degree of disability. As a result of the amendment, disabled people will be better and more comprehensively ensured the necessary help from both the state and local governments.
One aim of amending the Child Protection Act is to give local governments the right to obtain a comprehensive overview of the children residing in their areas to whom the determination of a degree of severity of disability has been applied for, in order to ascertain any additional need for assistance in such children and families. Earlier analyses have shown that disabled children have difficulties in reaching the necessary help and services, and parents often do not know where to turn with their problems. As a result of the amendment, local governments will be able to turn to families proactively, in order to offer assistance and supporting services that prevent aggravation of their need for assistance. The aim is to increase the opportunities for disabled people to get help, and to improve their daily living by offering them counselling and support preventively. The system to be established will allow local governments to proactively contact disabled people as a potentially more vulnerable target group, but each person has the right to refuse to accept assistance.
The Act makes several other amendments that concern for example the special welfare services, the qualifications of social workers of local governments, the regulation on the place of stay of people receiving the general care service, subsistence benefit, sexually abused children, substitute care, the benefit for a pensioner living alone and the determination of disability of persons of old-age pension age.
During the debate, Marika Tuus-Laul took the floor on behalf of the Centre Party Faction, Õnne Pillak on behalf of the Reform Party Faction, Heiki Hepner on behalf of Faction Isamaa and Helmen Kütt on behalf of the Social Democratic Party Faction.
71 members of the Riigikogu voted in favour of passing the Act.
One Bill passed the second reading
The Bill on Amendments to the Employment Contracts Act and Other Associated Acts (521 SE), initiated by the Government, will transpose the relevant European Union directive on transparent and predictable working conditions in the European Union, which lays down minimum requirements relating to working conditions that apply to every worker in order to guarantee an adequate degree of transparency and predictability as regards the working conditions. The proposed amendments will enhance the protection of both employees and officials in employment and service relationships and will help ensure that they are informed about essential working and service conditions at as early a stage of an employment or service relationship as possible.
In the Employment Contracts Act, amendments will be made to the set of data of which the employer must inform the employee in writing on commencement of employment. The employer will have the obligation to inform the employee of the training entitlement provided by the employer, the paid leave, the duration of the probationary period, the procedure for working overtime and compensation therefor, the form for cancellation of the employment contract and the obligation to provide justifications, as well as the institutions receiving the taxes and social contributions and the protection accompanying the payment thereof. In the event of changes to the data, information on the changes will have to be provided at the latest on the day on which the changes take effect.
It will also be provided that, in the event of an impediment to work, the probationary period will be extended correspondingly, in relation to the duration of the absence, for example in the event of temporary incapacity for work. The employee will be given the right to request suitable working conditions, for example, to request full-time work instead of part-time work and to receive a response to the request from the employer. In addition, the Bill will provide for protection against unfavourable treatment for the case when an employee invokes their rights or draws attention to a breach of such rights. This means that, where an employee stands up for their rights, this must not be followed by adverse consequences, for example, where an employee draws attention to the fact that the employer is failing to meet the working hours and rest period requirements, the employer must not impose adverse consequences on the employee.
The Bill will also amend the Civil Service Act and amend the set of data that will have to be provided to officials in the acts concerning the organisation of work and in the salary guides of authorities. At the same time, the Working Conditions of Employees Posted to Estonia Act will provide for the set of data of which the employer will have to inform the employer in writing in the event of a posting longer than one month, for example, information on the amount of and the currency to be used for the payment of remuneration, and repatriation. The Occupational Health and Safety Act will be amended by adding the obligation of the employee to ensure that their working or provision of services at other persons providing employment does not endanger the employee’s or other people’s life or health. The amendment is important for drawing employees’ attention to the importance of meeting the working hours and rest period requirements for health protection purposes.
Five Bills passed the first reading
The Bill on Amendments to the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act (548 SE), initiated by Faction Isamaa, provides for lowering the rate of excise duty on unleaded petrol for one year to the minimum level of the European Union, that is, to 359 euro per 1000 litres. The Bill proposes such a lowering of excise duty for one year from 1 May 2022 to 1 May 2023.
Under the Bill on the Ratification of the Agreement on Termination of the Agreement between the Republic of Estonia and the Republic of Austria for the Promotion and Protection of Investments (520 SE), initiated by the Government, the termination of the agreement between Estonia and Austria for the promotion and protection of investments will be ratified. The states signed the relevant agreement in Vienna on 13 December 2021. The termination of the agreement is necessary in order to ensure that investors from all European Union Member States are accorded equal treatment based on European Union legislation.
The Bill on Amendments to the Civil Service Act and the Unemployment Insurance Act (543 SE), initiated by the Government, will make the regulation for competitions less bureaucratic for public authorities and simpler for officials, enabling the substitute for a temporarily absent official to continue in the post without undergoing competition in a situation where the official being substituted is not returning. There will also be more flexibility and less bureaucracy in the recruitment for a post if a competition for a significantly similar post has been organised recently and strong candidates have participated in it. Within 150 calendar days as of the declaration of the competition, it will be possible to make a proposal to assume the post without competition to such candidates. The Bill will make the regulation for temporary transfer more flexible and provide for the possibility of a partial transfer of an official for a specified period. The Act that is currently in force does not allow this because, upon the transfer of an official for a specified period, the right of the official to exercise public authority in the post from which the official is transferred is suspended.
According to the amendment to the Unemployment Insurance Act, the rights of officials and employees will be equal in a situation where an official is released from service unlawfully and he or she wishes to receive unemployment insurance benefit. Under the current procedure, officials are not entitled to unemployment insurance benefit in the event of unlawful release from service. The Bill also provides that, if an official is killed or dies during the performance of their duties in a foreign country, the Ministry of Foreign Affairs will organise the transport of the body to Estonia at the expense of the state if reimbursement of such expense is not provided for in the insurance contract.
Under the Bill on Amendments to the Penal Code, the Code of Criminal Procedure and the Code of Misdemeanour Procedure (support of aggression, and the associated hostile activities) (576 SE), initiated by the Government, amendments will be made to the Penal Code that have been prompted by the attack of the Russian Federation against the sovereignty and territorial integrity of Ukraine and will ensure an appropriate penal response if a person takes part in a crime of aggression and related hostile acts.
According to the Bill, public exhibition of symbols that have been used in the commission of an act of aggression, genocide, a crime against humanity or a war crime with the aim of supporting or justifying such acts or intimidating, humiliating or significantly disturbing another person in any other way will be a misdemeanour.
According to the Bill, joining the armed forces of a foreign state committing an act of aggression and participation in an act of aggression as well as supporting it materially, including financially will be made punishable as criminal offences.
During the debate, Heljo Pikhof took the floor on behalf of the Social Democratic Party Faction, Paul Puustusmaa on behalf of the Estonian Conservative People’s Party Faction, Urmas Reinsalu on behalf of Faction Isamaa and Hanno Pevkur on behalf of the Reform Party Faction.
The purpose of the Bill on Amendments to the Penal Code (556 SE), initiated by Faction Isamaa, is to prohibit public use of internationally widespread symbols where the aim is to express support to Russia’s military activities in Ukraine. Under the Bill, a criminal sanction is provided against people in breach of this prohibition. Due to Russia’s military attack against Ukraine, it is necessary to avoid the emergence of attitudes that express support to the war against Ukraine, as well as public demonstration of such attitudes in Estonian society.
During the debate, Helir-Valdor Seeder took the floor on behalf of Faction Isamaa.
Five drafts were dropped from legislative proceedings
The Bill on Amendments to the Aliens Act and the Higher Education Act (516 SE), initiated by the Estonian Conservative People’s Party Faction, was to nudge employers to use local labour force in Estonia and to recruit foreign labour primarily to jobs requiring highly qualified labour. For this purpose, it was intended to increase the salary criterion provided for in law by 1.5 times as a general requirement. At the same time, this salary criterion would not have applied in the event of certain conditions. The Bill was also intended to organise the application for a residence permit for study purposes, aliens’ settlement in Estonia after their studies, the settlement in Estonia for family members of foreign students, and the payment of scholarships to foreign students.
During the debate, Mart Helme took the floor on behalf of the Estonian Conservative People’s Party Faction, Tõnis Mölder on behalf of the Centre Party Faction and Indrek Saar on behalf of the Social Democratic Party Faction.
The lead committee moved to reject the Bill at the first reading. 58 members of the Riigikogu voted in favour of the motion and 19 voted against. Thus, the motion was supported and the Bill was rejected.
The Draft Resolution of the Riigikogu “Making a Proposal to the Government of the Republic to Prevent Hostile Propaganda against Estonia” (529 OE), submitted by Faction Isamaa, was intended to make a proposal to the Government to implement adequate and effective measures to prevent hostile propaganda against Estonia. The explanatory memorandum noted that, considering the tense security situation and Russia’s aggressive influence activities in its neighbouring countries, it was necessary to review the legislation and measures concerning the hostile television channels in Estonia that were inciting military action.
During the debate, Tarmo Kruusimäe took the floor on behalf of Faction Isamaa, Indrek Saar on behalf of the Social Democratic Party Faction, Mart Võrklaev on behalf of the Reform Party Faction and Henn Põlluaas on behalf of the Estonian Conservative People’s Party Faction.
28 members of the Riigikogu voted in favour of passing the Resolution and 3 voted against. A majority vote of the members of the Riigikogu, that is, a minimum of 51 votes in favour, was needed for the draft Resolution to be passed. Thus, the draft Resolution was not supported and was dropped from the legislative proceedings.
The Draft Resolution of the Riigikogu “Making a Proposal to the Government of the Republic to Amend the Estonian Military Defence Plan” (554 OE), submitted by Faction Isamaa, was intended to make a proposal to the Government to develop and submit to the Riigikogu within one month as of the entry into force of the Resolution an action plan to amend the Estonian defence plan in connection with the international situation.
According to the proposal, national defence spending as a proportion of GDP should have doubled. It was also intended to make a proposal to the Government to apply, in cooperation with other European Union Member States, for a derogation from the European Union principle of budgetary balance in order that the expenses made on the Estonian national defence could be handled outside the budget balance rule. It was intended to propose to the Government to apply together with other Member States for the conclusion of a defence agreement that would double the European Union defence capability.
During the debate, Leo Kunnas took the floor on behalf of the Estonian Conservative People’s Party Faction, Heiki Hepner on behalf of Faction Isamaa and Jürgen Ligi on behalf of the Reform Party Faction.
28 members of the Riigikogu voted in favour of passing the Resolution and 31 voted against. A majority vote of the members of the Riigikogu, that is, a minimum of 51 votes in favour, was needed for the draft Resolution to be passed. Thus, the draft Resolution was not supported and was dropped from the legislative proceedings.
The Bill on Amendments to the Employment Contracts Act (537 SE), initiated by the Estonian Conservative People’s Party Faction, provides for the principle under which the days of national days and public holidays that fall on the weekly days of rest will be added to the holidays provided for in the Employment Contracts Act.
Heljo Pikhof took the floor on behalf of the Social Democratic Party Faction in the debate.
The lead committee moved to reject the Bill at the first reading. 40 members of the Riigikogu voted in favour of the motion and 21 voted against. There was one abstention. Thus, the motion was supported and the Bill was rejected.
The Bill on Amendments to the Basic Schools and Upper Secondary Schools Act (530 SE), initiated by Faction Isamaa, provides that, in order to graduate from basic school, the student will need to pass all final examinations with least a satisfactory score.
During the debate, Priit Sibul took the floor on behalf of Faction Isamaa and Jaak Juske on behalf of the Social Democratic Party Faction.
The lead committee moved to reject the Bill at the first reading. 40 members of the Riigikogu voted in favour of the motion and 14 voted against. Thus, the motion was supported and the Bill was rejected.
The sitting ended at 2.19 a.m. on 14 April.
Verbatim record of the sitting (in Estonian)
The video recording of the sitting will be available on the Riigikogu YouTube channel.
(Please note that the recording will be uploaded with a delay.)
Source: Parliament of Estonia