Riigikogu committees discussed budget sustainability and economic competitiveness with IMF delegation

The IMF delegation asked for an overview of the state of the economy, the impact of inflation on the competitiveness of businesses, and the impact of trade tariffs and international insecurity on Estonia’s economy. IMF also asked about the financing of defence spending and considerations around increasing tax revenue, but also about reforms for promoting competitiveness, improving investment environment, reducing bureaucracy, and labour policy.

The Chairman of the Finance Committee Annely Akkermann explained that Estonia had overcome three crises in a row and that the economy was showing a modest upturn. The new insecurities are the repercussions of policy changes in the USA, to a lesser extent also of trade tensions, but the strongest impact on Estonia’ budget has come from the need to increase our defence spending to 5 percent of the GDP. A better consolidated EU capital and energy market would give a huge boost to Estonia’s economic development.

The Chairman of the Economic Affairs Committee Marek Reinaas referred to the fact that the IMF has acknowledged the steps taken by the Estonian government over the last few years to improve our budgetary position and turn the economy on a path to growth. It has also recommended giving more attention to developing an innovative and openminded economy and carrying out reforms with a longer perspective—recommendations we can absolutely agree with.

Also present at the meeting were members of the Finance Committee Riina Sikkut and Mart Võrklaev.

The IMF delegation will also meet with the Government, Bank of Estonia, ministries, and state authorities, as well as the leaders and analysts of the Financial Supervision Authority during its visit. There are also meetings scheduled with commercial banks, professional organisations, and representatives of private businesses.

The head of the IMF delegation Vincenzo Guzzo will present the conclusions of the visit at the press conference held in the Bank of Estonia on 19 May.

The International Monetary Fund discusses important economic policy issues with every member state once a year. The outcome of the consultation is a report reflecting the IMF experts’ assessment of Estonia’s economic policy.

Riigikogu Press Service
Gunnar Paal,
+372 631 6351, +372 5190 2837
gunnar.paal@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: Riigikogu committees discussed budget sustainability and economic competitiveness with IMF delegation

Source: Parliament of Estonia