NordenBladet — Agenda for the 18th Working Week (15 June 2020–18 June 2020) of the 3rd Session of the Riigikogu Plenary Assembly

Monday, 15 June

1. Bill on Amendments to the Plant Protection Act, the Organic Farming Act, the State Fees Act and the Plant Propagation and Plant Variety Rights Act (142 SE), initiated by the Government of the Republic
Third reading

2. Draft Resolution of the Riigikogu “Appointment of Members of the Supervisory Board of the Bank of Estonia” (209 OE), submitted by the Finance Committee
First reading
Report by Aivar Kokk, Chairman of the Finance Committee

3. Bill on Amendments to the Rescue Act and the Weapons Act (128 UA), initiated by the Government of the Republic
Second reading
Report by Tarmo Kruusimäe, member of the Legal Affairs Committee

4. Bill on Amendments to the Building Code and Other Acts (173 SE), initiated by the Government of the Republic
Second reading
Report by Kristen Michal, Deputy Chairman of the Economic Affairs Committee

5. Bill on Amendments to the Government of the Republic Act (187 SE), initiated by the Government of the Republic
Second reading
Report by Paul Puustusmaa, Chairman of the Constitutional Committee

6. Bill on Amendments to the Fiscal Marking of Liquid Fuel Act and Amendments to the Taxation Act in connection with that (203 SE), initiated by the Government of the Republic
Second reading
Report by Aivar Kokk, Chairman of the Finance Committee

7. Bill on Amendments to the Environmental Charges Act (204 SE), initiated by the Government of the Republic
Second reading
Report by Aivar Kokk, Chairman of the Finance Committee

8. Bill on Amendments to the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act (207 SE), initiated by the Estonian Conservative People’s Party Faction, the Estonian Centre Party Faction and the Faction Isamaa
First reading
Report by Tarmo Kruusimäe, Member of the Riigikogu
Report by Aivar Kokk, Chairman of the Finance Committee

9. Draft Resolution of the Riigikogu “The Granting of a State Guarantee under Article 11 of the Council Regulation (EU) 2020/672 on the Establishment of a European Instrument for Temporary Support to Mitigate Unemployment Risks in an Emergency (SURE) following the COVID-19 Outbreak”, submitted by the Government of the Republic
First reading
Report by Martin Helme, Minister of Finance
Report by Aivar Kokk, Chairman of the Finance Committee

10. Bill on Amendments to the Traffic Act (191 SE), initiated by the Government of the Republic
First reading
Report by Taavi Aas, Minister of Economic Affairs and Infrastructure
Report by Kalvi Kõva, member of the Economic Affairs Committee

11. Railways Bill (201 SE), initiated by the Government of the Republic
First reading
Report by Taavi Aas, Minister of Economic Affairs and Infrastructure
Report by Jüri Jaanson, member of the Economic Affairs Committee

12. Bill on Amendments to the Energy Sector Organisation Act and the Natural Gas Act (202 SE), initiated by the Government of the Republic
First reading
Report by Taavi Aas, Minister of Economic Affairs and Infrastructure
Report by Kai Rimmel, member of the Economic Affairs Committee

13. Interpellation concerning the situation of the labour market (No. 34), submitted by members of the Riigikogu Helmen Kütt, Indrek Saar, Ivari Padar, Jaak Juske, Riina Sikkut, Katri Raik, Heljo Pikhof and Raimond Kaljulaid on 12 May 2020
Reply by Jüri Ratas, Prime Minister

14. Interpellation concerning the monitoring of the budget expenditure (No. 35), submitted by members of the Riigikogu Maris Lauri, Keit Pentus-Rosimannus, Andrus Seeme, Jüri Jaanson, Madis Milling, Toomas Kivimägi, Urve Tiidus, Signe Kivi, Liina Kersna, Kaja Kallas, Urmas Kruuse, Valdo Randpere, Mart Võrklaev, Andres Sutt, Erkki Keldo, Annely Akkermann, Taavi Rõivas, Heidy Purga and Kristina Šmigun-Vähi on 14 May 2020
Reply by Jüri Ratas, Prime Minister

15. Interpellation concerning the Road Management Plan for 2020–2030 (No. 25), submitted by members of the Riigikogu Aivar Sõerd, Yoko Alender, Andres Sutt, Urve Tiidus, Annely Akkermann, Toomas Kivimägi, Jüri Jaanson, Valdo Randpere, Signe Riisalo, Andrus Seeme, Ants Laaneots, Kristina Šmigun-Vähi and Urmas Kruuse on 11 February 2020
Reply by Taavi Aas, Minister of Economic Affairs and Infrastructure

Tuesday, 16 June

1. Bill on Amendments to the Family Benefits Act and Amendments to Other Associated Acts (185 SE), initiated by the Government of the Republic
Resumption of the second reading
Report by Priit Sibul, member of the Social Affairs Committee

2. Bill on Amendments to the Labour Market Services and Benefits Act and the Unemployment Insurance Act (206 SE), initiated by the Government of the Republic
Second reading
Report by Tõnis Mölder, Chairman of the Social Affairs Committee

3. Bill on Amendments to the Bankruptcy Act and Other Acts (195 SE), initiated by the Government of the Republic
First reading
Report by Raivo Aeg, Minister of Justice
Report by Jaanus Karilaid, Chairman of the Legal Affairs Committee

4. Bill on Amendments to § 140 of the Riigikogu Rules of Procedure and Internal Rules Act (182 SE), initiated by the Estonian Reform Party Faction and the Social Democratic Party Faction
First reading
Report by Kaja Kallas, Member of the Riigikogu
Report by Paul Puustusmaa, Chairman of the Constitutional Committee

Wednesday, 17 June

1. Bill on Amendments to the Money Laundering and Terrorist Financing Prevention Act and Other Acts (130 SE), initiated by the Government of the Republic
Third reading (Majority vote of the members of the Riigikogu)

2. Bill on Amendments to the Government of the Republic Act (187 SE), initiated by the Government of the Republic
Third reading in case the second reading is concluded (Majority vote of the members of the Riigikogu)

3. Bill on Amendments to the Government of the Republic Act and Other Acts (merger of the Environmental Board and the Environmental Inspectorate) (184 SE), initiated by the Government of the Republic
Third reading (Majority vote of the members of the Riigikogu)

4. Bill on Amendments to the Trade Unions Act, the Working Conditions of Employees Posted to Estonia Act and Other Acts (158 SE), initiated by the Government of the Republic
Third reading

5. Bill on Amendments to the Police and Border Guard Act (161 SE), initiated by the Legal Affairs Committee
Third reading

6. Bill on Amendments to the Recognition of Foreign Professional Qualifications Act and the Building Code (179 SE), initiated by the Government of the Republic
Third reading

7. Bill on Amendments to the State Borders Act (178 SE), initiated by the Government of the Republic
Third reading

8. Bill on Amendments to the Road Transport Act and Amendments to Other Associated Acts (157 SE), initiated by the Government of the Republic
Third reading

9. Bill on Amendments to the Public Procurement Act and the Commissioning of Artworks Act (177 SE), initiated by the Government of the Republic
Third reading

10. Bill on Amendments to the 2014‒2020 Structural Assistance Act and the Foreign Relations Act (129 SE), initiated by the Government of the Republic
Third reading

11. Bill on Amendments to the Aliens Act, the Income Tax Act and the Taxation Act (reduction of the abuse of the rules for working in Estonia) (145 SE), initiated by the Government of the Republic
Third reading

12. Bill on Amendments to the Alcohol Act, the Local Government Organisation Act, the Local Government Financial Management Act and the Income Tax Act (194 SE), initiated by the Finance Committee
Third reading

13. Bill on Amendments to the Rescue Act and the Weapons Act (128 UA), initiated by the Government of the Republic
Third reading in case the second reading is concluded

14. Bill on Amendments to the Building Code and Other Acts (173 SE), initiated by the Government of the Republic
Third reading in case the second reading is concluded

15. Bill on Amendments to the Fiscal Marking of Liquid Fuel Act and Amendments to the Taxation Act in connection with that (203 SE), initiated by the Government of the Republic
Third reading in case the second reading is concluded

16. Bill on Amendments to the Environmental Charges Act (204 SE), initiated by the Government of the Republic
Third reading in case the second reading is concluded

17. Draft Resolution of the Riigikogu “The Granting of a State Guarantee under Article 11 of the Council Regulation (EU) 2020/672 on the Establishment of a European Instrument for Temporary Support to Mitigate Unemployment Risks in an Emergency (SURE) following the COVID-19 Outbreak”, submitted by the Government of the Republic
Second reading in case the first reading is concluded
Report by Aivar Kokk, Chairman of the Finance Committee

18. Report by Chancellor of Justice “The rule of law in emergency situation”
Report by Ülle Madise, Chancellor of Justice

19. Bill on Amendments to the Spatial Data Act and the Apartment Ownership and Apartment Associations Act (196 SE), initiated by the Government of the Republic
First reading
Report by Rene Kokk, Minister of the Environment
Report by Erki Savisaar, Chairman of the Environment Committee

20. Bill on Amendments to the Place Names Act (186 SE), initiated by the Government of the Republic
First reading
Report by Jaak Aab, Minister of Public Administration
Report by Heiki Hepner, member of the Rural Affairs Committee

Thursday, 18 June

1. Bill on Amendments to the Family Benefits Act and Amendments to Other Associated Acts (185 SE), initiated by the Government of the Republic
Third reading in case the second reading is concluded

2. Bill on Amendments to the Labour Market Services and Benefits Act and the Unemployment Insurance Act (206 SE), initiated by the Government of the Republic
Third reading in case the second reading is concluded

3. Bill on the Ratification of the Protocol amending the Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data (143 SE), initiated by the Government of the Republic
Second reading
Report by Paul Puustusmaa, Chairman of the Constitutional Committee

On Monday, 15 June, after all items on the agenda have been discussed, the time for unscheduled statements begins, to continue until no further requests for the floor are made, but not longer than until 12 midnight.

On Wednesday, 17 June, from 12 noon to 2 p.m., Question Time takes place.

Source: Parliament of Estonia

NordenBladet — Today, the Riigikogu deliberated the matter of significant national importance “The Estonian Budgetary Policy”, initiated by the State Budget Control Select Committee.

Chairman of the State Budget Control Select Committee Jürgen Ligi, Governor of the Bank of Estonia Madis Müller, Chairman of the Fiscal Council Raul Eamets and Chairman of the Board of the Estonian Chamber of Commerce and Industry Toomas Luman delivered reports.

Jürgen Ligi said that affordable spending had been an Estonian tradition for two decades, and for a long time, Estonia had had reasons to be proud of it. He added that therefore Estonia had been somewhat ahead of the times when Europe as a whole, and especially some South European countries, had been living in debt for a long time. “Their debts have piled up, they have had to spend a great part of their time or a great part of their energy, their economic potential to serving their debts,” Ligi said. He remarked that Estonia had been more stable in that sense. “However, when the tendency in Europe is towards repentance, then it is exactly the opposite in Estonia. The government that took office in 2016 managed to significantly worsen also the budget for 2016 by adding expenses and removing revenues, and in 2017, such a decline began that even international organisations started to react to it with criticism,” Ligi said.

Ligi pointed out that the National Audit Office had drawn attention to the fact that Estonia’s actual budgetary balance had grown drastically worse, even in comparison to the predictions. “When the budget rule was slackened, they allowed themselves a deficit which was not adequate. In real life, control over expenses disappeared and for years, there were errors in one direction, towards the negative, and this was both nominally and structurally. The situation is worsening, by the amount of defence spending, by the amount of one year’s defence spending we were on the negative side last year, and slack behaviour was the reason for that to a great extent.”

Ligi said that he believed that Estonia’s future would be more interesting than or as interesting as during the recession, because all problems of the structure and the budget had been hidden under loan money. “On the one hand, there have been problems with using the loans; on the other hand, these decisions are continuously hidden, even in this hall.”

Madis Müller said that in comparison with other euro area countries, the situation of Estonian economy had been better in recent years, and in 2016–2019, the GDP gap in three countries out of the 19 euro area countries had been greater than in Estonia. Estonia’s structural budget deficit was higher than the euro area average. In five euro area countries, the average structural budget deficit of 2016–2019 was higher than in Estonia.

Müller pointed out that in the last four years, the budget of Estonia had been in deficit, and therefore the reserves of the country were smaller. “After the current crisis has abated, we should think how to avoid the situation where the budget is in deficit in good times in the future,” he noted.

“The prospect of the Estonian, euro area and the world economy is very insecure and it is difficult to predict what will happen. The European Commission forecasts Estonia’s economic recession to be 6.9 per cent this year, which is near the euro area average, where the European Commission predicts a little greater economic recession, 7.7 per cent. According to the latest baseline scenario of projections of the European Central Bank, the economic downturn in the euro area this year could be 8.7 per cent. According to the projections published so far, Estonia and most of our larger trade partners will achieve their pre-crisis economic level only by 2022,” Müller said.

As regards the aid measures for overcoming the current crisis, Müller said that according to the initial assessments, the aid package in Estonia was a little larger than the euro area average, and investments and indirect taxes had a greater role in the structure of the aid package in Estonia than allowances.

Raul Eamets said that on the proposal of the European Commission, the escape clause of the budgetary rules of the European Union had been implemented for the first time this spring. It gave the states an opportunity to temporarily depart from the requirements on public finances in order to support their economies with aid measures. The escape clause was automatically implemented also in the Estonian budgetary rules, which enables to postpone resolving of earlier mistakes. So that although the structural budget position of the government sector did not improve in 2019, in the opinion of Eamets, the government has no obligation to improve the position also in 2020.

“At present it is not known how long the escape clauses will be in force, but it is necessary to ensure that the long-term sustainability of public finances is not harmed also when the escape clause is in force,” Eamets said. According to the spring forecast of the Ministry of Finance, the nominal budget deficit of Estonia will reach 10 per cent of GDP and the structural deficit 5 per cent of GDP. “In the opinion of the European Commission, the expected deficit exceeds the deficit allowed by the rules, but in the present conditions, no infringement proceedings will be initiated,” Eamets said.

He added that in the opinion of the Fiscal Council it was important that the government presented, at the latest by autumn, a long-term view of the Estonian economy and public finances, or some scenarios together with the planned measures for restoring budgetary balance. “At the time when it is hard to assess the situation and structural position of the economic cycle, it is reasonable to proceed from the indicators of nominal budgetary position in setting the budgetary targets. In 2021, the starting point could be that the deficit should be lower than 3 per cent of GDP, which is one of the well-known European Union criteria.”

Toomas Luman said in his report that the entrepreneurs expected the budget policy to be predictable and stable, and that it would support the effective functioning of the state and the availability of public services. It should also be sustainable and affordable.

In Luman’s opinion, Estonia should preserve the state’s borrowing capability also for possible future crises. “If we continue borrowing enthusiastically, then most probably we will not have that capability next time, or it is very small,” he pointed out.

Luman emphasised that it was possible to support the entrepreneurs to a greater extent and with lower risk through loan surety, and therefore the amount allocated for sureties should be increased. He added that the maximum total responsibility of KredEx towards banks and lessors should be increased to 40 per cent. Luman also spoke about the expectations of entrepreneurs regarding the support measures. He said that the state should provide support only to those entrepreneurs on whose activities the crisis had had the greatest negative impact. The support measures should be transparent, and the state should treat the entrepreneurs equally and ensure fair competition. The criteria for granting support should be connected with the labour taxes paid to the state. He also found that the conditions for loan surety by KredEx should be mitigated.

During the debate, Maris Lauri (Reform Party), Kersti Sarapuu (Centre Party), Peeter Ernits (Estonian Conservative People’s Party), Aivar Kokk (Isamaa), Kalvi Kõva (Social Democratic Party), Oudekki Loone (Centre Party), Henn Põlluaas (Estonian Conservative People’s Party) and Siim Kallas (Reform Party) took the floor.

The Riigikogu passed an Act

The Act on Amendments to the Environmental Charges Act (109 SE), initiated by the Environment Committee, will amend the principles for calculating environmental charges for activities which cause the introduction of pollutants into the environment to feed live organisms.

The Act will provide a specification under which the pollution charge is not imposed if the substances and compounds specified in subsection 17(1) of the Environmental Charges Act are emitted into a water body, groundwater or soil for the purpose of cultivating live organisms, including plants, animals or fungi. Water pollution charge is paid at an increased rate of the environmental charge if the maximum quantities set out in or regulated under the Water Act. Compared to the current Environmental Charges Act regulation, the amendment does not lead to the responsibility for cultivators of live organisms to pay additional charges.

The purpose of establishing environmental charges is to steer the companies to reduce the damage caused to the environment, among other things, by emitting less pollutants to the environment.

86 members of the Riigikogu were in favour of passing the Act.

The Riigikogu suspended the second reading of one Bill:

The Bill on Amendments to the Family Benefits Act and Amendments to Other Associated Acts (185 SE), initiated by the Government, will specify the payment of child benefit for children under 16. Pursuant to the Bill, the payment of parental benefit can be suspended and continued based on calendar months until the child attains three years of age, according to a parent’s choosing. The Bill also specifies that parental benefit can be suspended and continued only after the child attains 70 days of age. The amendments will ensure legal clarity so that mothers who are not entitled to maternity benefit could use their individual right to a benefit during the first 70 days of life of the child, and this right would not be transferable to the father later with a suspension of the parental benefit.

The Bill would also extend the period of successive births when the new parental benefit is calculated on the basis of earlier income to three years. The amendment is necessary in order to ensure the livelihood of families upon successive birth of children, to prevent the postponement of desired births and to bring the provision on the same bases as the length of parental leave.

Besides that, the regulation regarding the payment of maintenance allowance during the enforcement procedure would be amended. The Bill would create the possibility to start paying maintenance allowance three months sooner. This would improve the livelihood of parents raising their children alone, enabling them to ensure the growing environment necessary for the child.

Signe Riisalo (Reform Party) took the floor during the debate.

On the motion of the Social Affairs Committee as the lead committee, the Riigikogu decided to suspend the second reading of the Bill, and to set 10 a.m. on 11 June as the deadline for submission of motions to amend.

The second reading of one Bill was postponed due to the end of the sitting:

The Bill on Amendments to the Police and Border Guard Act (161 SE), initiated by the Legal Affairs Committee, provides for ensuring the police officers and border guard officials as well as their family members, who are beneficiaries of disability pension or survivor’s pension, a pension that is at minimum equal to the pension they would have received if the basis for calculating their pensions had not been reduced by 8 per cent from 1 July 2009.

The Bill was occasioned by the need to ensure equal treatment to the beneficiaries of the superannuated pensions of police officers as well as the beneficiaries of the disability or survivor’s pensions of police officers or border guard officials.

NordenBladet — The Bill that will allow people to work temporarily while they are registered as unemployed passed the first reading in the Riigikogu today.

The Bill on Amendments to the Labour Market Services and Benefits Act and the Unemployment Insurance Act (206 SE), initiated by the Government, will increase flexibility in the unemployment insurance benefit system, and will provide people greater social protection in the event of unemployment.

According to the Bill, in the future, a person who has been registered as unemployed can work temporarily for up to five days a month, but in 12 months within two years as a maximum, and receive remuneration for that, which can be monthly up to 40 per cent of the minimum monthly wage in the previous year, which is 216 euro this year. The current law does not provide for such a possibility, and the registration as unemployed and the payment of unemployment benefits are terminated when the person takes up employment.

The Bill will specify the calculation of the unemployment insurance benefit in a situation where the insured person has been working in Estonia before he or she loses his or her job and, before that, outside Estonia in another contracting state of the European Economic Area or in the Swiss Confederation. The remuneration benefits will also increase: in the first hundred days of unemployment, the unemployment insurance benefit will be 60 per cent, instead of the current 50 per cent, of previous income, and the unemployment allowance will be 50 per cent, instead of the current 35 per cent, of the minimum wage in the previous year.

To facilitate seasonal employment of the unemployed, the Bill will amend the conditions for receiving the unemployment insurance benefit so that, if a person loses his or her job again after the end of seasonal work, the payment of the benefit will continue if the benefit has not been not paid for all days of the previous period of the payment of the benefit and no more than 12 months have passed since the person took up employment.

The Bill provides for the entry into force of the Act on 1 September 2020 when the provisions on temporary employment will enter into force. The increase in the replaced rate of the unemployment allowance and the unemployment insurance benefit will enter into force on 1 August 2020. The changes to the replaced rates will thus concern the benefits calculated from 1 August, and they will have no retroactive effect.

Lauri Läänemets took the floor on behalf of the Social Democratic Party Faction in the debate.

Two more Bills passed the first reading

The Bill on Amendments to the Fiscal Marking of Liquid Fuel Act and Amendments to the Taxation Act in connection with that (203 SE), initiated by the Government, will reduce the expenses of oil shale mining undertakings, allowing them to temporarily use diesel fuel for specific purposes.

Under the Bill, oil shale mining undertakings will be permitted to temporarily use diesel fuel for specific purposes on the territories of oil shale mines and open cast mines, in open cast mine technology and equipment, including in mining machinery, and the machinery used for transporting oil shale and ash. It will not be permitted to use fuel marked with a fiscal marker in transport on public roads. It will be possible to use diesel fuel marked with a fiscal marker in the period from 1 July 2020 to 30 June 2022.

Under the current Act, in the period from 1 May 2020 to 30 April 2022, the rate of excise duty on diesel fuel is 372 euro, and the rate of excise duty on diesel fuel marked with a fiscal marker is 100 euro per 1000 litres. Starting from 1 May 2022, the rate of excise duty on diesel fuel will be 493 euro, and the rate of excise duty on diesel fuel marked with a fiscal marker will be 133 euro per 1000 litres.

During the debate, Maris Lauri (Reform Party), Jevgeni Ossinovski (Social Democratic Party), Aivar Kokk (Isamaa) and Riho Breivel (Estonian Conservative People’s Party) took the floor.

The Reform Party Faction moved to reject the Bill at the first reading. 26 members of the Riigikogu voted in favour of the motion, 48 were against, and there were two abstentions. Thus, the motion was not supported and the first reading was concluded.

The Bill on Amendments to the Environmental Charges Act (204 SE), initiated by the Government, provides for a reduction in the expenses of oil shale mining enterprises, allowing them to temporarily pay a lower pollution charge upon dumping oil shale fly ash and oil shale bottom ash.

The Bill will enable oil shale mining enterprises to temporarily pay 1.31 euro per ton upon dumping oil shale fly ash and oil shale bottom ash from 1 January 2020 to 31 December 2020. With this, the charge for dumping ash will be reduced to the level of the charge for dumping oil shale residue. At present, the charge for dumping oil shale fly ash and oil shale bottom ash is 2.98 euro per ton. The reduction of the dumping charge will affect in particular three enterprises to whom oil shale extraction permit has been issued: Enefit Mines Ltd, VKG Mines Ltd and Kiviõli Chemistry Industry LLC.

During the debate, Maris Lauri took the floor on behalf of the Reform Party Faction and moved to reject the Bill at the first reading. 16 members of the Riigikogu voted in favour of the motion, 44 were against, and there was one abstention. The motion was not supported and the first reading was concluded.

A Bill was dropped from the proceedings of the Riigikogu

The Bill on Amendments to the Preschool Child Care Institutions Act (183 SE), initiated by the Social Democratic Party Faction, was intended to eliminate parents’ obligation to pay the nursery fee, and the relevant cost would have remained to be borne by the state. The state would have compensated for the loss of profit to local governments. The aim of the Bill was to ensure a free nursery place to every child.

During the debate, Indrek Saar (Social Democratic Party) and Aadu Must (Centre Party) took the floor.

The lead committee moved to reject the Bill at the first reading. 52 members of the Riigikogu voted in favour of the motion and 22 voted against. Thus the Bill was rejected and it was dropped from the proceedings.

The Minister of Finance Martin Helme replied to the interpellation submitted by members of the Riigikogu on 22 April.

Members of the Riigikogu Jaak Juske, Heljo Pikhof, Lauri Läänemets, Ivari Padar, Helmen Kütt, Indrek Saar, Jevgeni Ossinovski, Katri Raik and Raimond Kaljulaid asked the minister about the budget and fiscal policy measures targeted at micro and small enterprises. The interpellators wished to know what specific measures targeted at sole proprietors would be funded from the first supplementary budget for 2020, and what support measures for sole proprietors the Government was planning to consider in connection with the potential second supplementary budget. They also asked if the minister considered it necessary to establish an unemployment insurance premium for all people who received remuneration, including sole proprietors, in order to prevent pressure on the state budget during the potential following economic crises.

The Minister of Finance said that sole proprietors were a very large target group, and when developing allowances for them it had to be asked whether to compare them to employees or undertakings. “Do we wish to support the continuation of enterprise, or do we wish to direct people to salaried job or entrepreneurship in another field? This will also determine the measures,” he said.

In the words of the minister, the payment of the advance payment of social tax for the first quarter by the state was non-repayable financial support targeted specifically at sole proprietors. The maximum amount of an allowance was 534.5 euro. Sole proprietors whose spouses participated in the activities of their businesses had also been exempted from payment of social tax for three months, and the rules for the taxation of their revenue from forest had been mitigated.

The Minister noted that, in addition, an additional tax exemption would be applied for the income tax return of 2020 which would be due by 30 April 2021. According to his words, sole proprietors could also apply for support measures that are available to all undertakings through the Enterprise Estonia, and for the measure for compensation for damages for tourism businesses. “Besides the abovementioned support, there will also be activity-specific allowances. For example, the Ministry of Culture has planned allowances for undertakings operating within its area, among others for creative persons who can also operate as sole proprietors,” Helme added.

In response to the question concerning a second supplementary budget, the Minister of Finance said that the Government had not discussed the initiation of one this year.

In the minister’s words, the Government had reached the decision that the range of the persons covered by unemployment insurance could be extended on a voluntary basis. He noted that the more specific conditions were under development. At the same time, in Helme’s opinion, the extension of the unemployment insurance premium to sole proprietors is not in fact a topical problem. “If a total of 1875 sole proprietors have made an entry concerning the termination or suspension of their activities in the Commercial Register from March to May 2020, it is actually a very small part of the total number of sole proprietors,” he added.

The sitting ended at 7.48 p.m.

NordenBladet — Chairman of the Management Board of the Financial Supervision Authority Kilvar Kessler, who presented the 2019 Report of the Financial Supervision Authority to the Riigikogu today, said that the financial market of Estonia had been characterised by concentration, adaptation and growth.

“These trends – concentration, adaptation and growth – contain the obligation of financial supervision to ensure the regular and legitimate functioning of financial market within the framework of the law,” Kessler said. He assured that the financial supervision was working actively and reminded the market consistently and clearly that it should operate according to laws and regulations.

“We are a small, and not yet a very rich country,” Kessler admitted in his speech to the Riigikogu. “This determines the production portfolio of financial intermediaries: classical deposits and crediting in banking, motor third party liability insurance and comprehensive insurance in insurance, mandatory pension funds in assets management,” he pointed out. “Our economy is small and the households do not have enough savings to give wings to the stock exchange. Other investment products are also still trying to find a place for themselves in Estonia.”

The Financial Supervision Authority exercises supervision over around 300 financial intermediaries, like banks, insurance companies, management companies, insurance brokers, payment institutions, etc.

Besides the development of the financial market of Estonia, Kessler also spoke about the impact of the coronavirus pandemic on the financial sector.

“The Estonian banking sector was strong when it entered the crisis, on the average considerably stronger than the banking sector of euro area, and stronger than when it entered the financial crisis of 2008, but the nearest future will not be easy for the financial market and also for the supervision,” Kessler noted.

Kessler said that in order to ensure the stability of banking and reasonable treatment of clients, the Financial Supervision Authority had decided to suspend the payment of profits of the banks when the emergency situation commenced. Also, the framework for payment moratorium was established. As a result of that, grace periods have been implemented to around 5 per cent of the loan portfolio of private persons and 21 per cent of the portfolio of businesses.

During the debate, Andres Sutt (Reform Party), Anti Poolamets (Estonian Conservative People’s Party) and Riina Sikkut (Social Democratic Party) took the floor.

One Bill passed the second reading in the Riigikogu

The Bill on Amendments to the Courts Act and the Code of Civil Procedure (175 SE), initiated by the Government of the Republic, will create a mechanism in the Courts Act that allows to transfer court cases to other courts of the same instance if it is necessary for the administration of justice pursuant to the established procedure.

Jurisdiction of court cases and the location of hearing a matter will not change in the course of delegation between the courts. In the emergency situation described in the Obligation to Leave and Prohibition on Entry Act or in the Act on Granting International Protection to Aliens, the Bill will grant the chairmen of circuit courts the right to temporarily include county court and circuit court judges in the panels of administrative courts reviewing the applications for detaining aliens. Besides that, the right to get extraordinary assistance is provided; with the consent of the chairmen of courts, matters can be discussed on a voluntary basis at other courts of the same or lower instance, or in the mission for proceedings of a judge.

Additionally, it will be allowed to extend the authority of judges released from office at their request or due to age in exceptional cases, when it is necessary for finalising the proceedings in matters distributed to them. The Bill will extend the obligation of a judge to submit a request to be released from office from the current six months to at least nine months prior to the desired date of the release.

With the amendment to the Code of Civil Procedure, the resolving of all appeals filed against orders on entry in registry matters will be transferred to the special jurisdiction of Tartu Circuit Court through Tartu County Court. The aim of the amendment is to concentrate the competence in registry matters to the territorial jurisdiction of Tartu courts and thereby increase the specialisation of judges.

If the Act is passed, it will enter into force on 1 January 2021.

NordenBladet — Today, the members of the Estonian delegation to the Baltic Assembly participate in the video meeting of the Welfare Committee of the BA to discuss the strategy for exiting the crisis and the possible future scenarios.

Chairman of the Welfare Committee of the Baltic Assembly Urmas Espenberg said that besides the future scenarios, recent events would also be spoken about at the video conference, and the MPs and the ministers of social affairs of the Baltic States would be given an overview of the crisis readiness of health care institutions at the beginning of the coronavirus crisis as well as of the measures for combating the crisis. “It is clear that none of us was actually ready for such a large-scale crisis, regardless of the tangible signs of danger. Blocking of information by China and the inaction of the WHO also had a certain role here. In order to manage the possible future crises successfully and quickly, it is necessary to take steps and share experience with colleagues so that we all could learn from the mistakes. Especially if human lives are the price of the mistakes,” Espenberg pointed out.

Member of the Welfare Committee Helmen Kütt added that, at the meeting, the lessons of the crisis would also be discussed in the light of the social crisis and from the aspect of employment. “We will focus on ensuring the livelihoods of people through different measures, and exchange information about best practices of neighbouring countries. Many lost their jobs because of the crisis, and unfortunately, many people may still have to face it, because redundancies and closures of companies are not over yet. Although the number of infections has dropped almost to minimum, it does not mean that we can consider the issue closed, because the health crisis will be followed by both social and economic crisis,” Kütt said.

The Baltic Assembly is a consultative cooperation organisation of the parliaments of the three Baltic States, which discusses issues of mutual interest. A 12-member delegation of the Riigikogu (Parliament of Estonia) represents Estonia in the Assembly. This year, Estonia is holding the Presidency of the Baltic Assembly and the Baltic Council of Ministers.

NordenBladet — Today, the Governor of Eesti Pank Madis Müller presented the central bank’s annual report for 2019. Müller highlighted the major aspects in the work of the central bank, and shared the assessment of Eesti Pank of the economy and economic policy choices.

Speaking about the activities of Eesti Pank, Müller began with the topic of currency circulation in Estonia, which ran smoothly last year. He noted that access to cash had clearly improved over the last few years. The Governor also emphasised that Estonia was a trailblazer in the introduction of the so-called instant payments, which allow money to move between accounts in different banks in a matter of seconds.

In 2019, the investment portfolio of the central bank saw a huge increase, reaching EUR 1.2 billion by the end of the year. “The profitability of the Eesti Pank investment portfolio is exceptional, and we made a profit of nearly EUR 39 million on investments. This allowed us to allocate a larger part of the annual profit than usually into the state budget, in total nearly EUR 19 million,” he said.

Müller explained that the economic situation in the beginning of June has rarely departed so much from the expectations six months earlier. “While at the end of 2019 we could observe a modest recovery of the global economy after international trade wars, today we are facing a global recession,” he said. Müller recalled the International Monetary Fund January Outlook, which predicted an over 3% economic growth for this year; however, by April, the IMF was predicting a similar global economic recession. “Moreover, in developed countries, the economic recession will be twice as fast. A recession of this magnitude over such a short period has been rarely experienced before,” the Governor explained.

“We know that as early as the first quarter, the quarantine measures led to a nearly 4 % economic drop in the euro area in quarter comparison, and in the second quarter the downturn is likely to speed up,” Müller said. “If there is no need to implement new quarantine measures to control the virus, and the measures so far turn out to be efficient, the economy could restart quite rapidly on the second half of the year. But this is not enough to return to pre-restrictions levels by the end of the year,” he said. Müller added that all the outlooks are currently speculative, but the total production of the euro area is not likely to return to the pre-pandemic level before 2022.

Müller described the standing of the Estonian commercial banks as financially sound, both compared to banks in other countries as well as the last crisis. “Nevertheless, Eesti Pank decided to circumvent any problems by alleviating the capital requirements for banks, and take the systematic risk buffer from one percent to zero. This clears EUR 110 million in capital for the banks, allowing these to offer additional loans to individuals and businesses during a difficult time, or cover the losses from loans,” he said.

“It is very significant that the banks have been offering their clients flexible grace periods. They have also managed to agree between themselves that changing the payment schedule does not lead to imposing increased interest rates due to increased risks, nor charging the normal fee for changing contracts,” Müller said. He added that this has made the crisis considerably easier to bear for both businesses as well as families with housing loans, for example.

The Governor of Eesti Pank explained that in the near future the central bank would concentrate its attention on how to support post-crisis recovery, both by participating in shaping euro area monetary policy as well as by contributing to Estonia’s economic policy choices. Müller listed the areas that would benefit from strong governmental contribution. He predicted an increasing importance of economic digitalisation and the growing need to support retraining. He also emphasised that when we launch large-scale investment projects, it would be worth considering their alignment with climate goals which Estonia has already assumed and which demand major efforts from the government as well as the private sector.

During the debate, Riina Sikkut (Social Democratic Party), Peeter Ernits (Estonian Conservative People’s Party), Maris Lauri (Reform Party), and Sven Sester (Isamaa) took the floor on behalf of their factions..

One Bill passed the second reading in the Riigikogu

Bill on Amendments to the Environmental Charges Act (109 SE), initiated by the Government, passed the second reading.

The Bill would amend the principles for calculating environmental charges for activities which cause the introduction of pollutants into the environment to feed live organisms.

The Bill would provide a specification under which the pollution charge is not imposed if the substances and compounds specified in subsection 17 (1) of the Environmental Charges Act are emitted into a water body, groundwater or soil for the purpose of cultivating live organisms, including plants, animals or fungi. Water pollution charge is paid at an increased rate of the environmental charge if the maximum quantities set out in or regulated under the Water Act. Compared to the current Environmental Charges Act regulation, the amendment does not lead to the responsibility for cultivators of live organisms to pay additional charges.

The first reading of the Bill on Amendments to the Fire Safety Act and Other Acts (120 SE), initiated by the Economic Affairs Committee, was adjourned due to the end of the working hours of the sitting. The deliberation of the Bill will continue at Wednesday’s sitting.

NordenBladet — The Foreign Affairs Committee of the Riigikogu (Parliament of Estonia) decided to make a proposal to the Government to prepare the Asian strategy of Estonia.

Chairman of the Foreign Affairs Committee Enn Eesmaa said that the Committee had taken into account the initiative of the Asian Centre at the University of Tartu to create a strategy for realising the long-term plans of Estonia concerning the developments, opportunities and challenges in Asia. “Estonia’s targets in connection with Asia have been a topic of discussion in our Committee for a long time. In 2012, the report “The Opportunities and Interests of Estonia in Asia until 2025” was prepared on the basis of hearings in the Foreign Affairs Committee. In eight years, very many changes have taken place in the region, and it is time to map new directions and challenges,” Eesmaa explained.

The Chairman of the Foreign Affairs Committee added that the Committee intended to continue with the issue during the autumn session, when parliamentary hearings on topics relating to Asia are planned to be held.

Deputy Chairman of the Foreign Affairs Committee Marko Mihkelson recalled the Estonian Foreign Policy Development Plan 2030, which had recently been discussed in the Riigikogu, and where the need for preparing comprehensive strategies for regions of strategic importance was underlined. “A more specific action plan in regard to Asia could be one of such strategies. It is certainly necessary to keep in mind that the strategy has to be applicable, should set specific objectives and create a context that could serve as a basis for establishing bilateral relations with states,” Mihkelson said.

In the opinion of the representatives of the University of Tartu Asian Centre, Estonia currently lacks a cross-sectoral and long-term Asian strategy that could be used by different interest groups as a basis for planning their activities. They believe that a new strategy that is created for the state and the public of Estonia could establish new guidelines, considering the need to protect the security of Estonia.

NordenBladet — The Riigikogu concluded the second reading of the Bill on Amendments to the Government of the Republic Act and Other Acts in connection with the Reorganisation of the Agricultural Board and the Veterinary and Food Board into the Agricultural and Food Board (164 SE), initiated by the Government, and sent it to the third reading.

Under the Bill (164 SE), on the basis of the Agricultural Board and the Veterinary and Food Board, the Agricultural and Food Board will be set up and it will start operating on 1 January 2021. The amendments conform to the state reform action plan 2019–2023 approved on the basis of the Government’s action programme. The merger of the authorities proceeds from a more general principle of the state reform, namely to reduce the duplication of activities in different state offices, to reduce the number of administrative agencies and to improve the quality and availability of public services.

The Agricultural and Food Board to be formed after the merger of the agencies will perform all the current main functions of the two agencies, which will require retention of the present staff, among other things. With the reorganisation of the two agencies, the capability of risk-based inspection will increase, the management of information in the entire food production chain will improve, and the quality of the prevention and information activities to reduce offences will grow. The communication aimed at clients will be more comprehensive, and the administrative burden to clients will be reduced.

Ivari Padar (Social Democratic Party) took the floor during the debate.

The Riigikogu concluded the first reading of two Bills

The Bill on Amendments to the Local Government Organisation Act and the Local Government Financial Management Act (194 SE), initiated by the Finance Committee, will extend the deadlines by which local governments must adopt amendments to the budget strategy and the development plan and, on the basis of that, submit the draft budget and the explanatory memorandum to the municipal councils.

The purpose of the Bill is to propose an operational and functioning solution for 2020. As a result of the emergency situation caused by the spread of COVID-19, the relevant provision of the State Budget for 2020 Act was applied, and therefore the adoption of the state budget strategy was postponed to this autumn. In connection with this, it will be necessary to extend the deadlines by which local governments must adopt amendments to the budget strategy and the development plan, and submit them to the municipal councils. This will enable local governments to take into account the information set out in the state budget strategy when making management decisions.

In addition, the Bill will provide for a simplification for the presentation of information in the explanatory memorandum to the budget. A similar rule is in place for the state budget strategy which enables the Government to make generalisations and simplifications in the state budget strategy as compared to the normal situation.

The main amendment provided for in the Bill on Amendments to the National Audit Office Act, the Political Parties Act and Other Acts (controlling body for political party funding) (193 SE), initiated by the Faction Isamaa, the Estonian Conservative People’s Party Faction and the Estonian Centre Party Faction, is to transfer the functions of the Political Parties Financing Surveillance Committee as a monitoring body to the National Audit Office.

The initiators of the Bill say in justification that the purpose of the Bill is to make the monitoring of the funding of political parties, election coalitions and independent candidates more professional. For that, the surveillance competence will be given to the National Audit Office. As the monitoring activities will become more professional, the monitoring of the funding of political parties will become more understandable and the transparency of the funding will increase.

The National Audit Office will continue the ongoing monitoring activities of the Political Parties Financing Surveillance Committee. The National Audit Office will also participate in the ongoing judicial proceedings as the legal successor of the Political Parties financing Surveillance Committee. The performance of the additional task will require reorganisations in the National Audit Office, recruitment and training of officials, etc. The Act provides for a sufficient period for entry into force in order to allow for preparation and implementation of the changes.

During the debate, Kaja Kallas (Reform Party), Priit Sibul (Isamaa), Tõnis Mölder (Centre Party), Indrek Saar (Social Democratic Party) and Siim Pohlak (Estonian Conservative People’s Party) took the floor.

Kallas referred to the fact that the tasks of the National Audit Office did not include the exercise of oversight over the activities of political parties. Therefore it is unjustified to make such an amendment. She moved to reject the Bill at the first reading. Sibul expressed support to the Bill. In his opinion, the discussion should be taken to the Supreme Court if necessary, in order to bring clarity as to whether the amendment is in conformity with the Constitution. He added that proceedings on the ongoing matters would definitely have to be continued on the basis of legal continuity. Mölder analysed the activities of the Political Parties Financing Surveillance Committee so far, and was very critical of it. He therefore considered it necessary to make changes regarding the issue of the oversight of the funding of political parties. Saar explained that if the National Audit Office were given the task of monitoring the covert funding of political parties, it might become more politically biased. Saar also drew attention to the fact that, now that the crisis situation was over, the Riigikogu was expected to address much weightier matters instead. Saar also moved to reject the Bill at the first reading. Pohlak justified why the Bill was necessary and called on to make proposals to amend the Bill in the course of the proceedings.

The results of the vote to reject the Bill at the first reading: 46 votes in favour and 53 against. The motion was not supported. The first reading was concluded. The deadline for submission of motions to amend is 15 May.

At the open microphone session, Helmen Kütt took the floor.

NordenBladet — Agenda for the 16th Working Week (1 June 2020–4 June 2020) of the 3rd Session of the Riigikogu Plenary Assembly

Monday, 1 June

1. Bill on Amendments to the Government of the Republic Act and Other Acts in connection with the Reorganisation of the Agricultural Board and the Veterinary and Food Board into the Agricultural and Food Board (164 SE), initiated by the Government of the Republic
Second reading
Report by Merry Aart, member of the Rural Affairs Committee

2. Bill on Amendments to the Local Government Organisation Act and the Local Government Financial Management Act (194 SE), initiated by the Finance Committee
First reading
Report by Aivar Kokk, Chairman of the Finance Committee

3. Bill on Amendments to the National Audit Office Act, the Political Parties Act and Other Acts (controlling body for political party funding) (193 SE), initiated by the Estonian Centre Party Faction, the Estonian Conservative People’s Party Faction and the Faction Isamaa
First reading
Report by Kert Kingo, Member of the Riigikogu
Report by Taavi Rõivas, member of the Constitutional Committee

Tuesday, 2 June

1. The 2019 Report of the Bank of Estonia
Report by Madis Müller, Governor of the Bank of Estonia

2. Bill on Amendments to the Environmental Charges Act (109 SE), initiated by the Environment Committee
Resumption of the second reading
Report by Erki Savisaar, Chairman of the Environment Committee

3. Bill on Amendments to the Fire Safety Act and Other Acts (120 SE), initiated by the Government of the Republic
First reading
Report by Mart Helme, Minister of the Interior
Report by Toomas Kivimägi, Deputy Chairman of the Legal Affairs Committee

Wednesday, 3 June

1. Bill on Amendments to the Government of the Republic Act and Other Acts (formation of the Education and Youth Board, renaming of the Language Inspectorate as the Language Board) (163 SE), initiated by the Government of the Republic
Third reading (Majority vote of the members of the Riigikogu)

2. Bill on Amendments to the Obligation to Leave and Prohibition on Entry Act and the Act on Granting International Protection to Aliens (prevention of mass immigration) (110 SE), initiated by the Government of the Republic
Third reading

3. Bill on Amendments to the Aliens Act (135 SE), initiated by the Government of the Republic
Third reading

4. Overview of courts administration, administration of justice and uniform application of Acts
Report by Villu Kõve, Chief Justice of the Supreme Court

5. Bill on Amendments to the Foreign Service Act and Amendments to Other Associated Acts (45 SE), initiated by the Government of the Republic
Second reading
Report by Marko Mihkelson, Deputy Chairman of the Foreign Affairs Committee

6. Bill on the Ratification of the Protocol amending the Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data (143 SE), initiated by the Government of the Republic
First reading
Report by Raivo Aeg, Minister of Justice
Report by Paul Puustusmaa, Chairman of the Constitutional Committee

7. Bill on Amendments to the Government of the Republic Act (187 SE), initiated by the Government of the Republic
First reading
Report by Taavi Aas, Minister of Economic Affairs and Infrastructure
Report by Paul Puustusmaa, Chairman of the Constitutional Committee

8. Bill on Amendments to the Salaries of Higher State Servants Act (166 SE), initiated by the Faction Isamaa, the Estonian Conservative People’s Party Faction and the Estonian Centre Party Faction
First reading
Report by Viktoria Ladõnskaja-Kubits, Member of the Riigikogu
Report by Paul Puustusmaa, Chairman of the Constitutional Committee

Thursday, 4 June

1. The 2019 Report of the Financial Supervision Authority
Report by Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority

2. Bill on Amendments to the Courts Act and the Code of Civil Procedure (175 SE), initiated by the Government of the Republic
Second reading
Report by Paul Puustusmaa, Chairman of the Constitutional Committee
On Monday, 1 June, after all items on the agenda have been discussed, the time for unscheduled statements begins, to continue until no further requests for the floor are made, but not longer than until 12 midnight.

On Wednesday, 3 June, from 12 noon to 2 p.m., Question Time takes place.

Source: Parliament of Estonia