At the meeting of President of the Riigikogu (Parliament of Estonia) Jüri Ratas and members of the Riigikogu with Adam Smith, Chair of the United States House Committee on Armed Services, the security crisis around Russia and Ukraine and the strengthening of bilateral transatlantic relations were discussed.
Chair of the Foreign Affairs Committee of the Riigikogu Marko Mihkelson, and Chair Enn Eesmaa and Deputy Chair Leo Kunnas of the National Defence Committee of the Riigikogu also participated in the meeting.
Ratas underlined that the relations between Estonia and the US had been closer than ever in recent months, and unfortunately, the ongoing security crisis is at the heart of these relations. “We highly appreciate the security and defence cooperation between Estonia and the United States, and we attach great importance to the USA’s active participation in and continuing contribution to the military defence of our region,” Ratas said. “We are very grateful for the security assistance and the presence of the US troops in the Baltic States. It is very important for us.” Ratas added that the US had taken the initiative among the Western states in leading the like-minded countries in a united and determined stand against Russia’s aggressive and belligerent behaviour.
Participants in the meeting noted that Russia’s military escalation in Ukraine continued and that Russia’s military footprint was consolidating in Belarus. Mihkelson considered it possible that the ongoing chapter in Ukraine was just a part of Russia’s attempt to reshape the European security architecture. “Russia’s permanent military presence in Belarus would be a threat to the Baltic States as the military misbalance in our region deteriorates then even further,” Mihkelson said. “This means that we need to enhance the deterrence and defence posture on the NATO eastern flank. The Narva River is the eastern border of both the European Union and NATO.”
Mihkelson said that the US military presence and its significant reinforcement in Europe were essential for deterring Russia. “We welcome the introduction of additional measures by the US and increased presence in the Baltic region,” he said.
Mihkelson underlined that the politicians and diplomats of the Western countries were doing their best to prevent the worst-case scenario. This has been confirmed on the visits of the members of the Riigikogu and in their active communication with the politicians of other countries. “At the same time, we have to keep supporting Ukraine politically, financially and militarily,” Mihkelson said. “Ukraine is under enormous pressure. Joint efforts are needed to support Ukraine to stand against the pressure of the aggressor.”
Considering the changed security situation, the members of the Riigikogu asked the US Congress to maintain the security assistance funding to the Baltic States on the same level as last year, or even increase it. “This helps us to develop our defence capabilities sooner,” Eesmaa explained. “Estonia in its turn will do its share and increase its defence expenditure to 2.6 percent of GDP by 2024.” In Eesmaa’s opinion, it is important to note that in national defence issues, the parties of the government coalition and the opposition in the Riigikogu are of the same mind.
Eesmaa agreed with other speakers that NATO’s presence in the region was vital, and added that recently also Finland and Sweden had shown interest in having closer cooperation with NATO.
Besides security policy issues, bilateral cyber defence cooperation and possible further cooperation in the construction of a LNG terminal.
Missiles of anti-tank weapon system Javelin, donated by the Estonian Defence Forces, arrived in Ukraine today.
„This is a small step by Estonia in support of Ukraine, but it is a real and tangible contribution to defence against Russian aggression,“ said Lieutenant General Martin Herem, Commander of Estonian Defence Forces. „At the moment, these missiles are more useful for Estonia’s security in defence of Ukraine rather than at a live fire exercise on an Estonian training area.“
„Our Estonian friends have sent us highly needed and effective modern Javelin anti-tank missiles. I am really grateful to the people, Government and Ambassador of Estonia to Ukraine for the steadfast support in such difficult times,“ said Deputy Minister of Defence of Ukraine Volodymyr Havrylov. „Donated equipment will be immediately handed over to our troops on the field.“
„The security situation at Ukraine’s border today requires comprehensive practical assistance; words alone are clearly no longer enough. Weapon aid in the form of Javelin missile systems has reached the Ukrainians. We have made quick and timely decision to support Ukraine, which today maintains a European front line that separates us from the war,“ Minister of Defence of Estonia, Kalle Laanet said. According to Laanet the step of Estonia and other Baltic countries to support Ukraine with arms has a significant impact the defensive will of the Ukrainian´s. „In difficult situations, it is always important to keep the initiative, which we have certainly taken by sending weapons assistance,“ Laanet added.
Missiles of Javelin weapon system, donated to Ukraine, were acquired from the USA. Under the terms of the contract, donation of missiles required consent of the United States, which was received.
Javelin shoulder-operated portable medium-range anti-tank missile system operates on a so-called shoot-and-forget method, which means that after launching the missile automatically guides itself to the target and allows the shooter to take cover.
Javelin missiles are capable of hitting the target directly and from above. Its effective range is around two kilometres. Javelins are in the armament of Estonian Defence Forces since 2015.
Javelin missile system has been used by the United States and many other countries since the mid-1990s and has been used successfully in Iraq in 2003 against armoured vehicles and later in the fight against Afghan insurgents.
At today’s sitting, the Riigikogu concluded the second reading of the Bill that will transpose the relevant Directive of the European Parliament and of the Council concerning the amendments made in respect of common rules for the internal market in electricity.
The amendments to the Bill on Amendments to the Electricity Market Act and Other Acts (426 SE), initiated by the Government, will increase opportunities for distributed generation through a regulation concerning active users of network services. This will give consumers an opportunity to participate more actively in the electricity market and to benefit in particular from changing their consumption habits. The Bill also provides for a regulation relating to the creation, development and management of energy communities, as well as a regulation concerning aggregation and demand response, in order to increase the flexibility of networks, and energy efficiency for consumers. An obligation to procure flexibility mechanisms from the market through tendering procedures will be provided for for network operators. The Bill also sets requirements for network operators to develop market-based charging networks for electric vehicles.
The Bill will also make amendments to the Electricity Market Act and the Natural Gas Act that will enable fixed price contracts for a specified term on more favourable conditions for consumers. The Government, the Ministry of Economic Affairs and Communications as well as market participants have pointed out the need to increase the flexibility of the contracts among various measures to mitigate the energy price crisis. In connection with the amendments, the provisions in the Law of Obligations Act will also be amended in the interests of clarity.
During the debate, Sven Sester (Isamaa), Siim Kallas (Reform Party), Urmas Reinsalu (Isamaa), Jüri Jaanson (Reform Party), Heiki Hepner (Isamaa) and Peeter Ernits (Estonian Conservative People’s Party) took the floor.
The Faction Isamaa moved to suspend the second reading of the Bill. 19 members of the Riigikogu voted in favour of the motion and 46 voted against. Thus, the motion was not supported and the second reading of the Bill was concluded.
Chairman of the Foreign Affairs Committee of the Riigikogu (Parliament of Estonia) Marko Mihkelson together with the Chairs of the Foreign Affairs Committees of the Parliaments of Latvia and Lithuania is on a visit to Rome, Italy. The meetings held there highlight the importance of the unity of allies in the complicated security situation of today.
Mihkelson underlined that, in the current situation, it was very important to communicate with your allies. “The unity of the West, especially the NATO countries, holds particular significance in the current situation,” Mihkelson said.
Mihkelson pointed out that Italy had always been an excellent partner who had contributed to the Baltic Air Policing. “We are very grateful to them for this strong support,” Mihkelson emphasised.
Today, the Chairs of the Foreign Affairs Committees of the Baltic parliaments will participate in a joint meeting with the Foreign and European Affairs Committee and the Defence Committee of the Italian Chamber of Deputies.
The Baltic delegation will also visit the Ministry of Foreign Affairs of Italy and have a meeting with Nathalie Tocci, Director of the Istituto Affari Internazionali (Institute of International Affairs).
Today, the Riigikogu discussed foreign policy as a matter of significant national importance, with focus on the Russian aggression against Ukraine.
Minister of Foreign Affairs Eva-Maria Liimets admitted that in light of the developments of recent days, an imminent attack against Ukraine cannot be ruled out. “This means we need to deal with these threats and stand up for Estonia and the entire democratic space of values. In this situation, Estonia must be completely prepared to deal with the consequences of the crisis,“ said Liimets.
The territorial integrity and sovereignty of Ukraine have been blatantly violated. The country has faced years of political, economic and military pressure and this has escalated into a stand-off that affects all of Europe.
“Our support for Ukraine in enacting political, economic and military reforms goes beyond words,“ the Minister of Foreign Affairs affirmed. She explained that Estonia is supplying defence equipment, investing in cybersecurity and digital systems, offering diplomatic support to Ukraine’s efforts, and also providing humanitarian and development assistance through increased cooperation and supporting them politically in NATO, the EU, the OSCE and the UN. “We are doing all this to make sure Ukraine is a free, sovereign and democratic European country,“ Liimets stressed.
Minister of Foreign Affairs said that in the geopolitical stand-off unfolding in Europe and posing a direct threat to us, Russia is trying to meet three objectives at the same time. First of these is to stop democracy from taking hold in Ukraine and the country’s continued integration with Europe, to use this conflict to restore spheres of influence in Europe and ensure that NATO led by the United States gives up its military presence in this imagined Russian sphere of influence. “These wishes were presented by the leadership of our neighbour in the form of an ultimatum demanding security guarantees,“ Liimets remarked. According to her we have responded to the ultimatum with a joint response that there can be no bargaining over Europe’s security and international law and the policy of spheres of influence has no place in Europe today.
In the current tense security situation, the West and Estonia cannot afford any strategic lethargy, confusion or dithering. “We must be prepared for a continued and prolonged crisis and escalating confrontation, where diplomacy has weight thanks to credible deterrence not acquiescence,“ she said. “Only the resolve of the West, including boosting the defence capabilities of NATO’s Eastern Flank, efficient work on the sanctions package and comprehensive assistance to Ukraine help prevent a further escalation of the situation.“
Reinforcing transatlantic cooperation and cohesion is an important pillar of our foreign policy. We must be prepared for Moscow testing the unity of NATO in one way or another. “This is why we are constantly working on increasing Allied presence in Estonia and boosting defence and political cooperation among the Baltic States,” Liimets said. “All this is a precondition for making sure the opponent does not make a miscalculation about how collective defence works. NATO’s deterrence and defence measures are strengthened in line with Russia’s military positioning and the arrival of additional forces from the United Kingdom is a good example of that.“
Liimets emphasised that security begins at home. In 2022, the defence spending rises to 2.3% of the GDP, that is, €748 million, and the government has decided to allocate an additional €380 million for national defence for the upcoming years in light of the current security situation.
Like other allies, Estonia always supports dialogue. Diplomacy must be given a chance because it is the frontline of security. “Naturally, we are in favour of dialogue with Russia in all forums and formats created for that purpose, including bilateral,” she said, adding that Estonia’s constructive approach is also evident in our continued readiness to move forward with the border treaty.
In addition to military threats, the Minister also drew attention to the unconventional threats which have also increased in Europe. “Estonia thinks the European Union can and should support the efforts of member states in boosting their military capabilities and offer tools for increasing their resilience in face of hybrid threats,“ she said.
Liimets expressed happiness to note that last year Estonia reached an agreement on establishing e-Codex, the European Union solution for digitalising justice, in Estonia, expanding the mandate of the eu-LISA agency based in Tallinn. Tallinn was also chosen as the location for the Baltic Regional Coordination Centre of electricity systems.
Minister of Foreign Affairs stressed in particular Estonia’s experience in the UN Security Council and emphasised that the protection of human rights and advancing democracy worldwide is among the most important foreign policy activities of Estonia because it reinforces the values-based international order on which our security directly depends.
The Minister of Foreign Affairs also mentioned climate diplomacy, Estonia’s increased activeness in Asia and the Pacific region, relations with China, promotion of foreign trade and economic diplomacy, but also the global Estonian diaspora action plan and consular services.
Liimets concluded by affirming that Estonia’s foreign policy is working tirelessly to ensure the protection of Estonia’s security, economy, and citizens, and maintain our security and the unity of the West of which we are an integral part.
Chairman of the Foreign Affairs Committee Marko Mihkelson spoke about Estonia’s security and the unity of our allied space, as well as protecting it through Estonia’s actions in foreign policy. He spoke at length about Russia’s aggressive foreign policy in regard to the democratic West, and ways to influence Russia to end the aggression.
Mihkelson compared the enlargement of NATO and the expansion of Russia. “While the first takes place on voluntary terms and with the agreement of its members for the sake of defending democratic countries, the second shows an authoritarian nuclear power in the grip of nostalgia for its empire trying to extend its limits (of influence) through a brutal breach and self-serving interpretation of international law,” he explained.
Russian authorities are in fact fully aware that NATO is not a threat. Just like no democratic neighbouring country is a threat to Russia’s security or territorial integrity. Mihkelson believes that if Moscow has even the slightest wish to step back from the edge of the cliff, this is the last moment to do so. “Giving up threats of violence and ending the aggression against Ukraine paves the way for a functional dialogue. However, the alternative road leads to the deepening of the dangerous confrontation and the closing of a new curtain, which certainly feels like iron.“
Mihkelson encouraged letting Moscow know in no uncertain terms that this extortion tactic, which is more common in the prison environment and which Russia is currently applying as a permanent member of the UN Security Council, is highly divisive for international security and as a whole erodes the principles of the UN Charter. “Absolutely no country, including the authoritarian Russia, can have the right to hegemony in Europe, nor the veto right when our security is shaped. The European security architecture has withstood the test of time well and there is no good reason to change it.“
Mihkelson sees the unity of the West, especially the NATO countries, as holding particular significance in the current situation. He interpreted the meeting of the NATO-Russia Council as showing that all 30 allies agree; however, the real strength test of unity is in actions – the readiness to stand up against Russia’s aggression, determination to defend one’s allies and support democratic partners like Ukraine.
In order to persuade Russia to end its aggression, the West needs to act right now. This mostly has to do with enhancing deterrence on the NATO eastern flank, including the Baltic states. Estonia, Latvia, Lithuania, and Poland should intensify their defence cooperation in the NATO framework as soon as possible, and work towards eliminating the possible legal obstacles standing in the way of military mobility. It is crucial to apply the US defence assistance as soon as possible, and increase the further financing for the Baltic Defence initiative to at least 200 million dollars a year.
Mihkelson does not see assisting Ukraine with weapons as an escalation of the events but rather as setting up a preventive deterrence. Handing over the Crimea or blocking Ukraine off from NATO, as some analysts recommend, will not prevent the spreading of war in his opinion. “We must not show Ukraine the door, but a road map on how to join the European Union and NATO” Mihkelson said. The fall of Ukraine would affect the security of the whole continent very negatively and would point the future pressure of Russia directly against NATO countries.
The Chairman of the Committee also briefed the Riigikogu on the work of the Committee over the past year, when it continued to actively monitor the foreign policy activities of the government, providing guidance to even out the emerging flaws when needed. The Foreign Affairs Committee has also been internationally active in the last year and has worked towards strengthening the unity among the closest allies and raising the awareness about the situation among the colleagues both in Europe and in the USA.
In conclusion Mihkelson warned that the coming days, weeks, months, and maybe even years will seriously test Estonia’s foreign and security policy. “There is no reason to insist that the existential threat to our security would fade away in the near future. We need to be prepared for all eventualities. For this, all of us here need to commit to what really matters – ensuring the sovereignty and security of Estonia.“
The reports were followed by questions to the speakers and comments by the representatives of factions and members of the Riigikogu. Mihhail Lotman took the floor on behalf of the Faction Isamaa, Maria Jufereva-Skuratovski on behalf of the Centre Party Faction, Ruuben Kaalep on behalf of the Estonian Conservative People’s Party Faction, Eerik-Niiles Kross on behalf of the Reform Party Faction, and Indrek Saar on behalf of the Social Democratic Party Faction.
Oudekki Loone (Centre Party), Peeter Ernits (Estonian Conservative People’s Party), Siim Kallas (Reform party), and Paul Puustusmaa (Estonian Conservative People’s Party) also spoke.
Today, the Riigikogu (Parliament of Estonia) will discuss foreign policy as a matter of significant national importance. The debate was initiated by the Foreign Affairs Committee of the Riigikogu. Reports will be made by Minister of Foreign Affairs Eva-Maria Liimets and Chairman of the Foreign Affairs Committee Marko Mihkelson.
In his report, the Chair of the Foreign Affairs Committee will focus on the security of Estonia, the unity of our allied space and protecting it through Estonia’s foreign policy activities, including also through parliamentary diplomacy.
Minister of Foreign Affairs Liimets will deliver the annual address on foreign policy to the Riigikogu. Her speech will give an overview of the main directions of Estonia’s foreign policy and Estonia’s positions.
The reports will be followed by questions to the speakers and comments by the representatives of political groups and members of the Riigikogu.
Today, a new Estonian task force Wisent 3, which was sent to Poland to support the country in repelling a hybrid attack from Belarus, started its operations.
Main body of task force Wisent 3 is formed of members of Northern and Southern Territorial Defence Districts of Estonian Defence League (EDL). Together with EDL members, an Estonian Defence Forces’ camera team and a national support element will start also their service. The task force consists of about 60 members.
“Members of the previous contingent have done a great job which we are honored to continue. We are convinced that cooperation with Polish units will be close and successful,” said Lieutenant Colonel Arti Levandi, Commander of task force Wisent 3. “We are also pleased that members of Estonian Defence League are now able to apply previously learned skills in an international setting.”
Task force Wisent 3 will be deployed to Poland until mid-March and operates in the same area as the previous task force. The unit will continue to work with Polish 18th Mechanized Division. The name of the task force means the European bison, symbolizing strength and power in Polish cultural space.
Estonia sent its first task force, with almost 70 members, to Poland in the beginning of December, and it was manned on the basis of reserve troops, active duty soldiers and civilians. The second task force served in Poland from mid-January to mid-February.
Deployment of Estonian task force to Poland is a bilateral defense co-operation project. Estonian task forces have constructed over 40 kilometer border barriers, carried out 40 media operations and conducted observation flights to monitor the border area.
More than 200 legislators from the United States Congress, the European Parliament and national parliaments across Europe issued a statement in support of Ukraine. The Statement is a sign of strong and broad support to Ukraine and encourages to look for a diplomatic solution and jointly prepare a package of economic sanctions.
Chair of the Foreign Affairs Committee of the Riigikogu (Parliament of Estonia) Marko Mihkelson, Deputy Chair of the Committee Mihhail Lotman and members of the Foreign Affairs Committee Henn Põlluaas, Ruuben Kaalep, Raivo Tamm, Indrek Saar, Maria Jufereva-Skuratovski and Eerik-Niiles Kross joined the Statement.
Statement:
“Transatlantic Legislators Statement in Support of the Sovereignty and Territorial Integrity of Ukraine
As legislators across the transatlantic community our support for the sovereign territorial integrity and political independence of Ukraine remains unwavering. We believe that Ukraine, like all sovereign nations, has the right to determine its own political and security future and we commend the Ukrainian government for the significant steps it has taken over the last 30 years to enact democratic and economic reforms reflective of the shared and longstanding norms and values of the liberal democratic nations.
The military buildup of Russian troops on the Ukrainian border as well as those currently involved in military exercises in the Baltic Sea, Black Sea, the Arctic and the Republic of Belarus not only threatens that progress but stands as an existential threat to Ukraine’s future and independence.
Transatlantic unity has never been more critical to preserving our democratic values. Our determination and resolve must be resolute.
To that end and in the spirit of our shared democratic values, we call on the transatlantic community to continue to use all possible diplomatic means to facilitate the deescalation of the ongoing tensions, while coordinating our efforts so we speak with one voice and stands united in the face of Vladimir Putin’s destabilizing efforts and reiterate our support for the Ukrainian people and their right to self-determination.
While diplomatic efforts persist, we urge our governments to immediately provide Ukraine with the lethal and non-lethal military assets required to defend themselves. We further urge our governments to prepare a set of coordinated and harsh economic sanctions ready to be implemented should the Kremlin undertake any further incursion into the sovereign territory of Ukraine.
Conflict is not inevitable, and de-escalation is possible.
The cost of war is too great, and meaningful and coordinated steps towards détente must be taken.”
Today, the Riigikogu discussed the implementation of the Estonian civil society development concept as a matter of significant national importance at the initiative of the Constitutional Committee. Everyone agreed that the Estonian residents are more involved in charity and that new donors are constantly emerging, which is why the government should find ways to promote charity work.
Minister of the Interior Kristian Jaani focused his presentation on the current situation in the development of the civil society and emphasised the importance of continuing with the implementation of the Estonian civil society development concept.
Jaani described the civil society in Estonia as strong and free. The civil society has increasingly contributed to our economy. In 2019, non-governmental organisations initiated by citizens made EUR 207 million in business revenue, with EUR 164 million of this coming from non-profit organisations; this forms about 2% of Estonia’s GDP. NGOs employ nearly 12,000 people.
At the end of 2019, social enterprises employed nearly 1,800 people and their business revenue reached almost EUR 45 million.
Jaani said that one in two Estonians have volunteered at some point. He referred to the studies on volunteering, commissioned by the Ministry of the Interior, which show that nearly 49% of the Estonian residents volunteered during the year leading up to the study. In 2013, only one in three had done the same. While in 2015 EUR 30 million was donated to NGOs, in 2020 the donations totalled at EUR 48 million.
In the international donations ranking World Giving Index, Estonia ranks 53rd among 114 countries. Although Estonia is the highest ranking Baltic state, we still have a lot of room for growth compared to many welfare states such as the Netherlands, Denmark, or Sweden.
Minister of the Interior touched on the main challenges of the civil society, including the need to create the conditions for the civil society to act quickly and flexibly, and outlined the possible ways for the state to give a hand in promoting charity work.
He suggested reviewing the conditions and limits for donations by businesses, seeking out the appropriate solutions in cooperation with businesses and partners, and increasing the flexibility of the current terms and limits. Today, legal persons can donate to NGOs without paying the income tax only up to a certain limit. A private person may deduct up to EUR 1,200 a year.
Minister Jaani concluded by saying that a strong civil society is the corner stone of democracy that needs to be built together.
The Executive Director of the Network of Estonian Nonprofit Organizations Kai Klandorf explained that donations allow us to help those who need our help to overcome an accident, difficult circumstances, or wrong choices. Those who find themselves in a situation that none of us are really safe from, and that we would also need the goodness of others to overcome if these should ever happen to us.
There are over 2,500 organisations in Estonia who collect donations; the donors thus contribute to saving lives, organising cultural and sports events, leading study and hobby groups, and defending democracy. Klandorf defines all these organisations and their donors as part of the civil society.
The civil society is viable when there are active and aware people who use different means and channels for participating in social life, volunteering, joining an organisation at their own initiative, participating in making the decisions that shape their lives, serving their community in a local government or at the national level by getting involved with initiatives they care about, and of course, donating.
Statistically, female donors outnumber men two to one; however, regardless of the age or gender, donating is on the up. In 2020, almost EUR 49 million worth of donations were declared in Estonia. A mere five years ago, this was EUR 18 million less. “This is a rapid increase. We are donating larger and larger amounts and with increasing frequency,” said Klandorf. “Actually, we have a lot to be grateful for. One could even say that charity is doing well.”
Nevertheless, for every regular donor in Estonia, there are still three who do not donate. “A closer look at the amounts tells us that an average donor gives as much a month as a good cup of coffee costs,” she explained. “We could definitely give to charity more than the price of one cup of coffee a month.”
Klandorf feels that Estonia has reached the economic wellbeing where most of us could feasibly comfortably donate one or two percentages of their income to charity.
Klandorf suggested that the government could promote donations by setting a separate limit that is not dependent on other deductions. Today, all tax-paying natural persons who donate may use deductions of up to EUR 1,200 a year; however, she feels that donations in public interest could be subject to a separate limit, and instead of a specific amount we should follow the principle that every citizen with a conscience donates 10 percent of their income.
“Promoting donation culture does not only help to support the capabilities of NGOs and mitigate different challenges in the society, but also enhances the solidarity and wellbeing in the whole society,” Klandorf concluded. “By personally contributing, we form a connection to that field; it is an important component of social activism and the functioning of the civil society, and thus democracy.”
Entrepreneur and co-founder of the technology company Bolt Martin Villig explained charity from an entrepreneur’s point of view. He spoke about his community, which has already given birth to the Education Fund and Jõhvi School, and which has received around EUR four to five million in donations from the founders over the last three years.
Villig referred to Jõhvi School as an excellent example of cooperation between the public and private sectors as well, only with an added contribution from 50 entrepreneurs and businesses. “Every time I see an opportunity to contribute and serve my private interests, or an opportunity to resolve social challenges, I lend a hand,” Villig said.
Speaking more broadly about how entrepreneurs view charity, Villig described most IT industry entrepreneurs as huge patriots of Estonia. “This is why we want the head office to be located in Estonia, although the businesses are built up globally. This means that although Estonian market is fairly small and we cannot build very large companies here, if we create jobs here that are knowledge intensive, and build products that are used across the globe, a big chunk of the export turnover and the taxes end up back in Estonia,” he explained.
Another key is also to think about charity on the global scale while building companies on global scale. “We are of course contributing in Estonia, but not only; our communication is actually global in scope,” Villig said and gave the example of the Founders Pledge, a charity organisation that has 1,700 members across the world by now. “An entrepreneur makes a pledge that if at one point in the future they would be doing well and their company has grown, they would make an agreement with the organisation and donate a certain percentage of their new assets to charity,” Villig explained. The average percentage has reached about 13 by now.
Villig sees a need for businesses and organisations to think about donations just like they do about investments. He also feels that in addition to monetary donations it is also important to think along and transfer the business mindset to the charity sector. This was the idea behind the Good Deed Foundation which is coordinating the Education Fund; the Foundation unites a community of volunteers, whether financial analysts, HR experts, lawyers, etc., who are ready to contribute their time or money if an initiative needs a helping hand.
Villig stressed the need for transparency. “When we are doing something, it needs to be clear to a wider circle why we are doing this,” he said. “In education we see that the better the people who join us and the better the values and foundations people grow up with, the less the state needs to worry about them later: there is less crime, better awareness of healthy eating and exercise, and all this dramatically reduces our social expenses in the future.”
The second key concept is cooperation with the state. He suggested testing out fresh ideas with private money and see if these bring a positive effect that coincides with national priorities, and from that point forward the state could start to offer co-financing. “We are able to import changes and mindsets quicker,” Villig said.
The technology industry has grown over the past five to six years by 25% a year, currently offering 8,000 jobs and about two billion in turnover, large part of which is formed by export, and about EUR one billion in foreign investments came in last year. The industry pays around EUR 500 million in taxes a year.
In comparison, Estonia’s state budget was around EUR 13 million last year, and the value of our technology companies was around six billion, i.e. nearly one half of the current state budget.
Villig predicted that the state budget could be around 30 million in ten years’ time, and the net worth of the Estonian founders of technology companies could be around 40 billion. He suggested that a one percent investment from one’s assets to charity every year would be quite reasonable. “In ten years, this could potentially be around 300 or 400 million,” Villig predicted. “This would help us solve some pretty dire social challenges in Estonia as well as in the global context.”
If a business can currently donate 10% of the profit they made the previous year or 3% of the salary fund this year tax-free, we could consider raising this to 10–15% of the total retained profit, which the businesses could contribute towards charity. He concluded by calling on all entrepreneurs to consider donating.
Chairman of the Constitutional Committee Toomas Kivimägi said that the number of people who are willing to donate exceeds the number of people who are actually doing it by two to three times. For example, the percentage of regular donors in Estonia is 12 percent, and nearly one in two have made single donations. While 27% of Estonians donate in a single month, in Finland this number is 39% and in Sweden 57%. “This is a sign that we still have a long way to go,” Kivimägi remarked.
Kivimägi is not in favour of doubling the deductible amount from EUR 1,200 to 2,400. He suggested introducing the deduction of an additional EUR 500 or 600 only if these are donations.
He emphasised personal approach in collecting donations and highlighted the importance of regular donations. Although financial donations form quite a large amount, a lion’s share of these go to a very small number of organisations, which he sees as a problem. People can also contribute their time, which can be measured in financial terms. In conclusion, Kivimägi sees helping others as a privilege.
The reports were followed by questions to the speakers and comments by the representatives of factions and members of the Riigikogu. During the debate, Andres Metsoja (Isamaa), Peeter Ernits (Estonian Conservative People’s Party), Lauri Läänemets (Social Democratic Party), Heiki Hepner (Isamaa), Marko Šorin (Centre Party), and Margit Sutrop (Reform Party)took the floor.
President of the Riigikogu (Parliament of Estonia) Jüri Ratas expressed Estonia’s full support to Ukraine at the meeting with Chairman of the Verkhovna Rada (Parliament) of Ukraine Ruslan Stefanchuk today in Kyiv.
Ratas underlined that there was no doubt in the global democratic community that Ukraine’s sovereignty and territorial integrity were unconditional. “Invasion of an independent state is a grave violation of international law,” Ratas said. He recalled that the war in Donbass had been going on for eight years already, and it had to stop immediately.
Ratas assured his Ukrainian counterpart of the cooperation of like-minded democratic states and allies, and promised that Ukraine would not be left alone. “It is our duty to support Ukraine in your fight for your territorial integrity and sovereignty,” Ratas said.
Current security situation and plans for interparliamentary cooperation were discussed at the meeting.
At the meeting with Prime Minister of Ukraine Denys Shmyhal, Ratas also assured that Estonia supports Ukraine in every way both bilaterally and in international organisations. Security cooperation, including military assistance, development cooperation and humanitarian aid, as well as cyber defence cooperation were discussed.
The President of the Riigikogu gave a speech at the digital development and digital services forum Diia Summit. He spoke about the digitalisation of democratic societies through the example of Estonia and emphasised that the development of digital governance must be citizen-focused, and the legislation should support it.
The President of the Riigikogu is accompanied on the visit by Chair of Estonia-Ukraine Parliamentary Friendship Group of the Riigikogu Mati Raidma and Member of the Riigikogu Urmas Reinsalu. In the afternoon, the Estonian delegation laid flowers at the Tomb of the Unknown Soldier and commemorated the victims of the Great Famine of the 1930s in Ukraine (Holodomor). Tomorrow, the Estonian delegation will visit the Administrative Border Line with Crimea and get information about the situation there.