At the meeting, Hussar noted that the visit was taking place on a special day for Estonia—on the Victory Day. “Strengthening our defence capability is important for us, but it is equally important that we are never alone again. We are members of NATO, and at the Victory Day parade in Narva, the Allies were with us. I believe that the Victory Day celebrations gave the border town the reassurance that every inch of Estonia’s territory is protected,” he said.
Hussar thanked Spain for its great contribution to the strengthening of security in the Baltic region and on NATO’s eastern flank more widely. “Spain’s participation in the Baltic air policing missions is very important for Estonia. We are also grateful for the decision to deploy the NASAMS medium-range air defence system to Estonia again in August. We very much appreciate the contribution and cooperation of our allies and partners. It makes NATO stronger and shows what being an ally and collective defence really mean,” he said.
Speaking of Russia’s war of aggression in Ukraine, Hussar pointed out that developments in Ukraine were important not only for Ukraine but for the whole democratic world. “Ukraine is fighting for all of us, and we must continue to support them in every way, including providing military aid,” he said, adding that Estonia expected that the decisions on strong support for Ukraine would be taken at the NATO Summit in Washington in July, where the continued strengthening of defence and deterrence posture and the increasing of defence spending would be discussed as matters of importance.
Chairman of the National Defence Committee of the Riigikogu Kalev Stoicescu also participated in the meeting of the President of the Riigikogu and the King of Spain.
Today, the King of Spain, together with President of Estonia Alar Karis, also visited the multi-purpose amphibious assault ship-aircraft carrier Juan Carlos I of the Spanish Navy, which has arrived in the Port of Tallinn. From Estonia, the King will proceed to Lithuania and Latvia.
Photos (Erik Peinar / Chancellery of the Riigikogu)
The Expert Panel was convened last year. The result of its work is a comprehensive report “The Situation and Perspectives of the Estonian Economy. Report of the Expert Panel on Competitiveness to the Riigikogu” that discusses the future prospects, opportunities and obstacles of the Estonian economy, and outlines forward-looking economic policy recommendations.
Members of the press,
You are welcome to attend the press conference where Chairman of the Economic Affairs Committee of the Riigikogu Jaak Aab and members of the Expert Panel on Competitiveness Ülo Kaasik, Priit Vahter, Kadri Männasoo and Uku Varblane will give an overview of the contents of the report and its recommendations.
The press conference will be held on Tuesday, 25 June, at 12 noon in the Conference Hall of the Riigikogu. The press conference will be public, and it will be webcast live.
The report shows that changes in business models multiply the positive impact of digitalisation, and artificial intelligence also has a great potential in increasing productivity. The report also focuses on energy, highlighting new incentives to invest in Estonia brought about by the green transition, underlining the need to think about energy efficiency when valorising green electricity, and setting out that 60–80% share of renewable energy will ensure the lowest price of electricity. At the same time, Estonia’s productivity is held back by education drop-outs, mismatches between jobs and skills and excessive labour turnover.
The members of the Expert Panel on Competitiveness are Deputy Governor of the Bank of Estonia Ülo Kaasik, Professor of Applied Economics of the University of Tartu Priit Vahter, Tenured Professor of Applied Econometrics at Tallinn University of Technology Kadri Männasoo and Head of Research at the Foresight Centre Uku Varblane. Numerous experts and stakeholders, like other universities and research institutes, representatives of employers and employees as well as public authorities were also involved in the work of the Expert Panel.
Chair of the European Union Affairs Committee Liisa Pakosta explained that it was important for Estonia that the opportunities for students to study at the universities of the United Kingdom would improve, tuition fees would decrease, and a possibility for health insurance at favourable conditions would be created.
“The European Union is valuable for Estonia because, for one thing, we as a small nation can benefit from the advantages of studying in the UK universities similarly to large nations. The UK first started negotiations for young people to study on favourable conditions with larger nations, but the EU considered that discriminatory against smaller Member States. Estonia welcomes the European Union’s decision to hold negotiations on study conditions in such a way that smaller nations are also at the table as equals from the start,” Pakosta said.
The Chair of the European Union Affairs Committee noted that while more than 600 Estonian students were studying in the United Kingdom, currently there were as few as a dozen UK students in Estonia. “Therefore, it is important to also promote the studying opportunities our higher education institutions offer to international students,” she added. “We also need to ensure that Estonian students who are studying in the UK, or wish to do so, would be offered better financial conditions. Tuition fees at a large number of UK higher education institutions have multiplied for our young people, reaching to more than £40,000 per academic year.”
The explanatory memorandum points out that the agreement will make it possible to achieve uniform rules for mobility in Schengen area for young people of 18-30 years of age, contributing to the creation of a clearer and better legal space. The agreement would give young people in Estonia the same opportunities to study, work or do a traineeship in the UK as UK nationals in Estonia or other EU countries.
Advisers of the Ministry of the Interior Katarina Budrik and Harry Kattai gave an overview of the Council decision authorising the opening of negotiations for an agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland on youth mobility, and outlined the positions presented by the Government.
The European Union Affairs Committee decided by consensus to support the positions presented by the Government, considering the opinion of the Foreign Affairs Committee of the Riigikogu.
For more information, please contact: Liisa Pakosta, phone +372 502 6191
The aim of the Acton the State’s Supplementary Budget for 2024 (456 SE), initiated by the Government, is to ensure the financial stability and sustainability of the country. With the supplementary budget, Estonia will comply with the European Union’s budget rule under which the budget deficit must remain within 3% of GDP.
The measures in the negative supplementary budget amount to a total of 183 million euro, which will improve the budget position by 173 million euro. The Act on supplementary budget includes nearly 115 million euro in savings measures and 68 million euro in additional revenues. Savings in the state’s current expenditure will mainly concern management and operating costs, and public foundations will also have to contribute to savings. More dividends will be taken from state-owned companies to increase state revenues.
On 8 December last year, the Riigikogu adopted the state budget for 2024, which had a revenue volume of around 16.7 billion euro and an expenditure volume of around 17.7 billion and an investment budget of around 817 million euro and a financing transactions budget of 1.4 billion.
During the debate, Andrei Korobeinik (Centre Party) and Urmas Reinsalu (Isamaa) took the floor.
61 members of the Riigikogu voted in favour of passing the Act and 12 were against.
The Act on Amendments to the Land Tax Act (437 SE), initiated by the Government, increases local governments’ decision-making power in determining land tax. The amendment of the Act will not mean an increase in land tax to a greater extent than provided by the current Act. The tax relief for land under homes will remain in place, but its amount will be decided by municipal councils which will be given greater discretion for this.
At present, the fiscal autonomy of local governments is insufficient, leaving municipalities dependent on central government funding decisions. This forces municipalities to wait for state funding when making their budgets, which in turn hinders forward planning for local life. Increasing fiscal autonomy at local government level will allow municipalities to strike a better balance between the level of services and the imposition of taxes.
In 2025, the annual increase in land tax will be subject to a uniform national ceiling of up to 50 percent, and 20 euro in the case when the 50 percent increase in an amount of land tax is less than 20 euro. From 2026 onwards, local governments will be able to set their own limit for the annual increase in land tax, ranging from ten to one hundred percent. Land tax cannot exceed the amount of the land tax calculated on the basis of the taxable value of the land and the land tax rate.
According to the Act, the nationwide area-based tax relief for land under homes will be abolished from 2026, but local governments will be able to decide on the size of the amount-based tax relief for land under homes. The relief may be up to a thousand euro and land tax will have to be paid for the part exceeding the tax relief. A higher land tax can be paid in two instalments: by 31 March and 1 October. The Act increases the amount of the first payment from 64 euro to 100 euro.
Pursuant to the Act, from 2025 the maximum tax rate on residential land and land parcels located within yards on profit yielding land will be increased from 0.5 per cent to one per cent of the taxable value of the land. The maximum rate of land tax on “other land”, such as commercial land, production land and transport land, will also be increased from one per cent to two per cent of the taxable value of the land.
In addition, the Act makes a specification that land in state ownership with intended purpose of public construction works land will be exempt from tax only if the land is used by a state agency or local government agency.
Land tax is currently the only property tax in Estonia that has remained at the same level since 2012.
During the debate, Aivar Kokk (Isamaa), Lauri Laats (Centre Party) and Varro Vooglaid (Estonian Conservative People’s Party) took the floor.
56 members of the Riigikogu voted in favour of passing the Act and 20 were against.
The Act on Amendments to the Information Society Services Act and the Penal Code (224 SE), initiated by the Government, brings Estonian law into conformity with the EU Regulation on addressing the dissemination of terrorist content online.
The main aim of the Regulation is to improve cooperation with hosting service providers in the EU in order to enhance the removal of terrorist content online. The Regulation concerns social media, as well as video, image and audio-sharing services in the case of which, at the request of users, the hosting service provider publishes web content which is publicly available and which is not subject to access restrictions, for example, password or encryption.
According to the Act, hosting service providers are required to adopt the necessary measures to prevent the spread of terrorist content online and in the event of the existence of such content they are required to remove or disable access to it. The Act also regulates the division of tasks in order that it would be possible for competent authorities to implement measures arising from the Regulation and to exercise supervision over compliance with the obligations of hosting service providers.
In addition, the Act amends the provision on incitement to acts of terrorism in the Penal Code so that, in the future, it will be possible to also hold liable persons who incite to the commission of acts of terrorism when they issue incitements in a manner hidden from the public, for example, in moderated forums or groups.
63 members of the Riigikogu voted in favour of passing the Act and one was against.
The Act on the Accession to the Convention for the Establishment of a European Organization for Nuclear Research and its Financial Protocol and Protocol on Privileges and Immunities (451 SE), initiated by the Government, allows Estonia to become a full member of the European Organization for Nuclear Research (CERN).
Estonia has been engaging in research cooperation with CERN since 1996. Estonia becoming a full member of CERN will open doors for Estonian businesses who will be able to participate in CERN procurements without limitations in the future. Namely, the total financial volume of contracts won by Estonian companies in a year and the employment and traineeship contracts of people with Estonian citizenship working at CERN is limited to the amount of the annual membership fee which was 1.45 million euro in 2023. By becoming a CERN member state, Estonia will be released of this limitation. CERN’s procurements are technology-intensive and rigorous, and thanks to CERN’s reputation, winning them is a very high quality mark for an exporting company. In cooperation with CERN, it is also possible to develop new products and technologies and to bring knowledge from cutting-edge science to business.
The European Organization for Nuclear Research (CERN) was established on 29 September 1954. CERN provides for collaboration among European States in nuclear research and in research related thereto. 23 countries are members of CERN. In order to become a full member of CERN, it is necessary to accede to the Convention for the Establishment of CERN and its Financial Protocol and the Protocol on the Privileges and Immunities of CERN. The associate member status is mandatory for new member states before becoming a full member. Estonia was granted associate member status on 1 February 2021.
66 members of the Riigikogu voted in favour of passing the Act.
The Ukrainian World Congress, which unites the Ukrainians in diaspora, decided to award St. Volodymyr the Great Medal to the Riigikogu for its contribution to supporting Ukraine, as well as in recognition of the Riigikogu being the first in the world to recognise the Holodomor as a genocide against the Ukrainian people. Estonia declared the great famine of 1932–1933 a genocide against the people of Ukraine in 1993.
The medal was presented today at a reception in the White Hall of Toompea Castle by Vira Konyk, Head of the Congress of Ukrainians of Estonia, who said that the St. Volodymyr the Great Medal was awarded to individuals, and awarding this medal to an official institution was one of the few exceptions in the history of the Ukrainian World Congress. “It is a token of gratitude from the global Ukrainian community for your continued and sincere support for Ukraine. It demonstrates a deep respect for the courage of the Parliament of Estonia, which was the first in the world to recognise the Holodomor as a genocide of the Ukrainian people,” she said.
Accepting the medal, the President of the Riigikogu said that it was a recognition not only for the Riigikogu, but for all the people of Estonia. “We have firmly supported Ukraine in its fight against Russia, which is waging a war of aggression, and we will continue to support Ukraine until the victorious end of the war,” Hussar assured, and added that Estonia would also continue to support Ukraine on its path to the European Union and NATO.
In Estonia, the award of the Ukrainian World Congress was also presented to Tetyana Ivushkina, the founder and head of the Ukrainian Museum in Kohtla-Järve and the cultural society Dva Kolyory, and to Director of the Ukrainian Cultural Centre Bogdan Lyutyuk.
Photos (Erik Peinar / Chancellery of the Riigikogu)
“Sensing the threat posed by our aggressive neighbouring country, we spend 3.2 per cent of our gross domestic product on defence and have contributed significantly to granting military assistance to Ukraine. Now is a critical time for the Allies to develop our defence and deterrence capabilities, to which the Congress has contributed greatly in recent years through the Baltic Security Initiative,” said Stoicescu, who during his visit focused on promoting the defence cooperation between Estonia and the USA and on explaining Estonia’s perception of threat as a NATO and European border state.
Stoicescu welcomed the fact that before the US presidential elections, the representatives of the Congress reaffirmed that the allied relations of the US with Estonia are strong and would not change, regardless of the election results.
During the visit, which lasted from Tuesday to Friday, Stoicescu met with Ranking Member of the House Armed Services Committee Adam Smith, and members of the Congress Tim Burchett, Ralph Norman, Larry Bucshon, Carol Miller, Gabe Amo and Derrick Van Orden. He also had a meeting with Sonata Coulter, Deputy Assistant Secretary of State overseeing policy toward Russia and Central Europe, with whom he spoke of the threat posed by Russia.
In Pentagon, the Chairman of the National Defence Committee discussed the bilateral defence cooperation between Estonia and the USA and NATO’s upcoming Washington Summit with Principal Director for European and NATO Policy in the Office of the Secretary of Defence Alton Buland. Stoicescu also participated in a discussion with the analysts from think tank RAND Corporation, and spoke at a round table dedicated to the war in Ukraine at the think tank American Enterprise Institute. Besides that, Stoicescu and the Ambassador of Estonia Kristjan Prikk, as well as representatives of many other countries, attended the ceremony of laying a wreath at the Victims of Communism Memorial in Washington.
Chair of the European Union Affairs Committee Liisa Pakosta said that industrial capacities during peacetime were instrumental for keeping peace. “For Estonia, this is an issue of survival. We know that Russia has the will to restore the Russian Empire, that Russia is rebuilding its capabilities at a strong pace, that Russia’s troops are numerically larger than they were before the war. We must do everything to ensure that Russia would not get the opportunity to attack the European Union and NATO,” Pakosta stated.
“The Russian Empire must receive a clear deterrence from the European Union’s defence industry, and this means peacetime production capability that meets wartime requirements. Even if we do not use this production capability to its full extent in peacetime, it is better to risk wasting the capacity than to lose the next war. If we want to be better protected after five years, decisive steps need to be taken now, both at the national level by increasing defence spending and at the European level by investing in capabilities,” Pakosta emphasised.
Member of the European Union Affairs Committee Aleksei Jevgrafov added that today’s decision of the Committee had been adopted by a consensus, and the members of the Riigikogu had agreed to all priorities and needs that had been set out in Estonia’s positions. He pointed out that the Defence Industrial Strategy was a historic document for the European Union as well. “The 1.5 billion euros planned for enhancing Europe’s defence readiness in the proposal for a Regulation is not enough, and it is complicated to increase defence capability with that. As funding is urgently needed, Estonia supports the issuing of European Union Defence Bonds as one solution, in order to mobilise at least 100 billion euros of additional funding sources before 2028.”
Kristo Enn Vaga, who gave an overview of the positions of the National Defence Committee of the Riigikogu at the sitting, highlighted developing the European defence industry as a clear priority for Estonia. “We must respond to Russian aggression and the speed of their war machine with long-term planning and strategy. Bringing more money into defence will speed up the delivery of the necessary ammunition, boost Europe’s economy and create more jobs. It is in Estonia’s interests that the strategy is swiftly implemented and that not only the Eastern border countries, but all 27 EU Member States take the developing of the defence industry seriously.”
It was decided at the sitting that the draft did not set out clearly what needed to be done to enhance defence capability, but Estonia wanted that the emphasis would be on developing ammunition, air defence and distant strike capability.
At the sitting, Director of the Innovation Department of the Ministry of Defence Miiko Peris gave an overview of the European Defence Industrial Strategy and programme, and the positions of the Government in regard to them.
The European Union Affairs Committee also discussed the European Defence Industrial Strategy in detail also at its public sitting on 11 March, and approved Estonia’s positions on increasing defence readiness funding at its public sitting on 27 May, where the next long-term budget of the European Union was discussed.
For more information, please contact: Liisa Pakosta, phone +372 502 6191
The Riigikogu made a fundamental decision on whether to consider nuclear energy production in Estonia in the future. The Resolution is mainly based on the analysis conducted by the Nuclear Energy Working Group, which concluded that the adoption of nuclear energy in Estonia is feasible.
According to the Resolution, the National Development Plan of the Energy Sector Until 2035 must address the impacts of the adoption of nuclear energy in order to ensure security of energy supply during the transition to climate-neutral energy production.
When establishing the regulatory framework, it must be ensured that the risks related to national security, financing and form of ownership are thoroughly assessed.
According to the explanatory memorandum of the Resolution, the adoption of nuclear energy in Estonia would have several advantages. Among other things, nuclear power would provide a continuous generation capacity that would balance the fluctuations in renewable energy generation capacity, help Estonia reach its climate neutrality target, ensure a stable and affordable electricity price in the long term perspective, promote research and development, bring economic benefits and create jobs for local people. The Resolution does not grant the right to build a nuclear power plant in Estonia.
41 members of the Riigikogu voted in favour of passing the Resolution of the Riigikogu “Supporting the adoption of nuclear energy in Estonia” (431 OE), submitted by 55 members of the Riigikogu. 25 members of the Riigikogu voted against the Resolution, and there were two abstentions.
The joint statement evokes the expected decision by the G7 leaders (Canada, France, Germany, Italy, Japan, UK, and US) at their next meeting on whether — and how — to seize the nearly €300bn in Russian state assets frozen in western countries since February 2022. “As chairs and parliamentarians of our respective parliamentary foreign and European affairs committees, we collectively urge G7 leaders to explore all legal avenues to support Ukraine, starting with the creation of multilateral or bilateral loan facilities backed by the windfall profits generated by the frozen Russian assets,” they write.
However, they see this as only the first step. “The ultimate objective must be to fully confiscate all Russian assets and transfer them to Ukraine, ensuring that this process adheres to international law. Russia’s war of aggression has already done almost €500bn in damage to Ukraine’s infrastructure — and that amount grows daily,” write the parliamentarians, referring to the fact that at least €3bn a month in outside financial assistance is required just to prevent a collapse of Ukraine’s economy. “Against numbers like these, confiscating €3bn in annual windfall profits on Russia’s frozen assets simply is not a sufficient response to the challenge Russia has issued to Ukraine and its friends in the democratic world.”
The parliamentarians say in their joint statement that a multilateral or bilateral loan facility backed by windfall profits generated by the frozen Russian assets is estimated to only provide around €40bn-€50bn to Ukraine. “We see these proposals as a first step — not an alternative — to confiscating the nearly €300bn,” they state.
The parliamentarians affirm the need to step up our assistance to help Ukraine win this war — both for Ukraine’s democratic European future and for our own security. “To do that, we need to be prepared to take big, bold decisions proportionate to the historical significance of our times. Our decision here will set a precedent either way. If we confiscate the entire €300bn in accordance with international law, we affirm the legal right to take countermeasures when a state like Russia grossly violates international law with its aggression,” the statement reads.
They see confiscating the full amount as sending a signal of our resolve to Vladimir Putin and other authoritarians who may seek to attack their neighbours that such aggression has severe financial consequences. “Leading economists who support full confiscation point out that most market impacts were priced in at the time these assets were originally frozen two years ago — and that seizure in response to aggression would be too rare an occurrence to have major currency impacts. To do this, we urge the G7 to dispense with half-measures and to take the only step that will have the required impact — confiscation of all €300bn in frozen Russian central bank assets,” the parliamentarians write.
The joint statement was signed by chairs of committees and members of parliaments from the European Parliament and the parliaments of Belgium, Bulgaria, Czechia, Denmark, Estonia, Germany, Ireland, Italy, France, Latvia, Lithuania, Luxembourg, Moldova, the Netherlands, Poland, Romania, Ukraine, United Kingdom, and United States. The Chairman of the Foreign Affairs Committee of the Riigikogu Marko Mihkelson signed the statement on behalf of Estonia.
The Chairman of the Foreign Affairs Committee of the Riigikogu Marko Mihkelson describes the cooperation with Latvian and Lithuanian Foreign Affairs Committees as closer than ever, as is testified by numerous joint visits and statements. “If we hope to achieve our goals in foreign and security policy, it is crucial that we continue our close cooperation, harmonise our positions, and plan our further steps together,” he said.
The meeting will focus on supporting Ukraine in its fight against Russia, who continues its war of aggression. The Secretary General of the Ministry of Foreign Affairs Jonatan Vseviov will take part in the discussion on Russia’s aggression in Ukraine and the global security situation more broadly. The Ambassador of Sweden to Estonia Ingrid Tersman will participate in the discussion on cooperation within NATO and strengthening European security.
The delegations of Foreign Affairs Committees will take part in a commemoration of victims of the 1941 June deportation in Kudjape cemetery and lay flowers on their memorial. They are also scheduled to visit Baltic Workboats in Nasva.
Other members of the Foreign Affairs Committee of the Riigikogu to take part in the meeting with Baltic colleagues are Ester Karuse and Luisa Rõivas.