Members of the Riigikogu Jaanus Karilaid and Ester Karuse had submitted an interpellation concerning the underfunding of roads to Prime Minister Kaja Kallas.
The interpellators referred to the report by the National Audit Office according to which the funding of national roads in its present form was not sustainable and the Estonian state was planning to allocate a smaller amount for the maintenance of highways next year than had been allocated in 2013–2022.
The Prime Minister explained that, with the decreasing funding, they were unable to meet all the objectives set for the preservation and development of national roads. “In a situation where there is not enough money to meet the objectives, priorities need to be set in activities,” Kallas said. She referred to the fact that the state budget was currently in chronic deficit, and that was not sustainable.
Kallas said that the maintenance expenditures necessary to ensure that the road network met the conditions had not been cut and there was no plan to save on them in any way. That was also proved by the road maintenance expenditure trends for the previous and the planned period in the budget of the Transport Administration. Correspondingly, it had been 36.1 million euro, including 16.3 million for winter maintenance, in 2020, and 37.6 million euro, that is, over 10 million euro more, including 17.3 million for winter maintenance, in 2021. In 2022, 40 million euro had gone into road maintenance which had again been more than in 2021, including 19 million for winter maintenance. 44.5 million euro have been planned for the maintenance of roads, including 20.6 million euro for winter maintenance, in 2023, and 45.4 million euro, including 21.1 million euro for winter maintenance, in 2024. “So, as you can see form these numbers, these funds are increasing steadily,” the Prime Minister noted.
Kallas pointed out that the maintenance of roads and security were definitely significantly interlinked, because there were less risk factors for accidents on roads that were in good condition and well maintained. At the same time, it must be taken into account that there are considerably more than one accident risk factors. “The biggest accident risk factor is speed which determines the consequences of a traffic accident and the degree of severity of injuries,” Kallas said.
The Prime Minister added that, looking at infrastructure as a whole, in fact 400 million euro was being invested in infrastructure this year, but much more of it was going into railways than into roads.
Prime Minister also replied to the interpellations concerning the weakening of local governments, and regional disparities, the livelihood of local governments, the funding of health care, the livelihood of disabled people, and regional development in view of the planned tax rise, submitted by members of the Riigikogu.
Kallas did not have to reply to the interpellation concerning the establishment of Tallinn Hospital because of the absence of the interpellator.
The Minister of Defence Hanno Pevkur replied to the interpellation concerning national defence.
The Minister of Foreign Affairs Margus Tsahkna replied to interpellations concerning the rise in VAT.
Tsahkna did not have to reply to another interpellation concerning the rise in VAT due to the absence of interpellators.
The interpellation concerning the integral impact of the tax package and the interpellation concerning transparency of the legislative process submitted to the Minister of Defence Hanno Pevkur, and the interpellation concerning transparency of the legislative process submitted to the Minister of Foreign Affairs Margus Tsahkna were removed from today’s agenda.
Mihkelson pointed out that Russia’s hostile plans did not involve Ukraine alone, but the security of Europe in a wider sense. In his opinion, the Western allies must therefore do all in their power to help Ukraine win the war. “At the same time, we must also pay attention to Moldova, which has made great progress as an EU candidate country, despite the difficult security and economic situation, and whose government remains firmly on a European course,” he said, and affirmed that Estonia supported Moldova’s European integration and was happy to share its reform experience.
The meeting of the Chairs of parliamentary committees of the European Union countries will be opened by President of Moldova Maia Sandu, President of the Parliament of Moldova Igor Grosu and Prime Minister Dorin Recean. At the meeting, which will last all day, the issues relating the Moldova’s EU integration, economic development and security, including energy security, will be discussed with the participation of the representatives of the Parliament and the Government of Moldova.
Chairman of the Foreign Affairs Committee Marko Mihkelson welcomed his Norwegian colleagues and said that fighting against Russia’s aggression against Ukraine continued to be a priority for us. “There is also a war going on in the Middle East, and we see connections between them. If we lose in Ukraine, we will lose everywhere, including in the Middle East,” Mihkelson emphasised.
Mihkelson pointed out that Russia’s as well as China’s strategic goals were for the long term, and that Russia’s position was strong enough to continue pursuing these goals for a long time and to do so at the cost of the well-being of its people. “Russia’s aim is to end the hegemony of the USA and to destroy the security architecture of Europe. Next year, they will spend 60 percent of their state budget on war, and this is only the public part of military expenses. The Allies must not underestimate that,” he stated.
Chairman of the Foreign Affairs Committee underlined that Norway’s assistance to Ukraine was of great value, but noted that the allies still did not have a common vision of what the end of this war should be. “The Ukrainians have a strong will to fight, but they need technology and ammunition. Our assistance must remain steadfastly strong. It is also important that Sweden became a member of NATO as soon as possible,” Chairman of the Foreign Affairs Committee said.
Deputy Chairman of the National Defence Committee Leo Kunnas and member of the National Defence Committee Meelis Kiili, as well as members of the Foreign Affairs Committee Eerik-Niiles Kross and Anti Poolamets also participated in the meeting.
Eight members of the Standing Committee on Foreign Affairs and Defence of the Storting (Parliament) of Norway are visiting Estonia. The head of the delegation is Chair of the Committee Ine Eriksen Søreide. During the visit, the Norwegian delegation will also meet with the Minister of Foreign Affairs and the Minister of Defence of Estonia.
Photos (Erik Peinar / Chancellery of the Riigikogu)
Chair of the European Union Affairs Committee Liisa Pakosta pointed out that so far it had not been the practice to discuss EU initiatives at public sittings, so it was a unique opportunity to follow the sitting both at the Riigikogu and online. She noted that the discussion was motivated by the EU regulation on artificial intelligence, which was planned to be adopted in a few months.
“It would be the first regulation of this scope in the world,” Pakosta said. According to her, the Committee wishes to get information on the current state of negotiations in the European Union and on how successful Estonia has been in defending its positions. “We also want to know what will be the impacts, opportunities and risks relating to the artificial intelligence regulation for the Estonian people and economy if the regulation were to be adopted in its current form,” Pakosta added.
Head of the European Commission Representation in Estonia Vivian Loonela and Government Chief Data Officer at the Ministry of Economic Affairs and Communications Ott Velsberg will outline the contents and the situation of the EU draft regulation on artificial intelligence. Member of the Riigikogu and IT entrepreneur Andrei Korobeinik, co-founder of Pactum AI Kristjan Korjus, founder of Threod Systems Mikk Murumäe and founder of Net Group Priit Kongo will also deliver reports.
The reports will be followed by a debate with experts and members of the Riigikogu. For the first time, it will be possible to send questions to members of the European Union Affairs Committee and the speakers through the Slido platform before and during the sitting.
Discussion on artificial intelligence is the second item on the agenda of the Committee sitting. At the beginning of the sitting, the European Union Affairs Committee will be given an overview of Estonia’s positions at the informal meeting of the Competitiveness Council of the European Union on 6–7 November.
Members of the press are welcome to cover the event. The sitting will be held in the Conference Hall of the Riigikogu and last around two hours. After the sitting, it will be possible to interview the experts and the members of the European Union Affairs Committee.
Mihkelson said that the main topics of the visit would be supporting Ukraine in Russia’s ongoing war of aggression, as well as Sweden’s NATO accession process. “I am very happy that the protocols of the North Atlantic Treaty on Sweden’s accession to NATO have reached the Turkish Parliament for ratification. We hope that soon we will see Sweden as a full member of the Alliance,” he added.
The increasingly tense situation in the South Caucasus and the impact of the Israel-Hamas war on the security situation in the Middle East will also be discussed at the meetings.
Mihkelson underlined that the defence cooperation with Turkey was also important for Estonia. “Turkey is a very important partner and ally for us in NATO. The cooperation agreement of defence industries that was signed by our Ministers of Defence the week before last and the procurement contract for nearly 230 wheeled armoured vehicles, which directly contributes to Estonia’s security, are examples of our excellent relations,” he noted.
During the visit, the Chairs of the Foreign Affairs Committees of Baltic Parliaments will meet with Chairman of the Foreign Affairs Committee of the Grand National Assembly of Turkey Fuat Oktay, Chairman of the National Defence Committee Hulusi Akar and Chairman of the Turkey – European Union Joint Parliamentary Committee İsmail Emrah Karayel. They also plan to have meetings with the President’s Foreign Policy and Security Chief Advisor, former Chairman of the Foreign Affairs Committee of the Turkish Parliament Akif Çağatay Kiliç, Minister of Foreign Affairs Hakan Fidan and Deputy Minister of Foreign Affairs Mehmet Kemal Bozay.
Besides Mihkelson, Chairman of the Foreign Affairs Committee of the Saeima (Parliament) of Latvia Rihards Kols and Chairman of the Committee on Foreign Affairs of the Seimas (Parliament) of Lithuania Žygimantas Pavilionis participate in the visit.
Chair of the European Union Affairs Committee Liisa Pakosta pointed out that plant breeding was particularly important for Estonia. “We also have several strong actors in this field, like the Estonian University of Life Sciences, Polli Horticultural Research Centre and the University of Tartu. Scientists have invented new ways of breeding plant varieties that imitate nature itself and are already being used by the rest of the world,” Pakosta said.
“The possibility of breeding new plant varieties so that the genetic modification techniques banned in the EU are not used, but opportunities are found to breed plants in a way similar to natural cross-breeding or random mutations, is very important for Estonian farmers and forest growers,” the Chair of the European Union Affairs Committee said. “Such work by scientists could relieve our children of some of the current worries, from withering of fir seedlings to the need to use dangerous chemicals to control pests. Genetic modification will continue to be banned, but, in simple terms, pushing of what happens in nature itself will be allowed. I am happy that all political parties supported this innovation, which is necessary for Estonia.”
Pakosta added that one of Estonia’s aims at the negotiations held in the European Union was to also find suitable solutions for organic production, as the new breeding techniques developed by scientists could be useful in the organic sector as well. “At the moment, organic production is excluded not for substantial reasons, but because there are opposing views among organic producers about the new breeding technologies. Estonian organic producers were not against the draft regulation during the proceedings,” Pakosta added.
At the sitting, it was noted that the achievements of science and innovation had created precision breeding techniques that could be used to breed plants in the way it would occur in nature, or varieties that were considered equivalent to conventional plants. It was pointed out that existing EU legislation was outdated and the regulation dealt with innovative methods of plant breeding that had emerged since 2001.
According to Estonia’s positions, it is correct to consider the plant varieties obtained through new breeding techniques that can also be obtained naturally or by conventional breeding methods equivalent to varieties obtained by classical plant breeding, and to treat them separately from genetically modified organisms. The characteristics that contribute to sustainability, like resistance to diseases, climate adaptation and enhanced yield, are important in conventional as well as new breeding techniques.
Head of the Research and Development Department Mai-Liis Palginõmm and Chief Specialist Kadri Just of the Ministry of Regional Affairs and Agriculture participated in the discussion of this agenda item and gave an overview of the initiative.
The European Union Affairs Committee, in line with the opinion of the Rural Affairs Committee, decided to approve the positions of the Government on the proposal for a regulation of the European Parliament and of the Council on plants obtained by certain new genomic techniques.
For more information, please contact: Liisa Pakosta, phone +372 502 6191
If an employee falls ill, at first their employer and then the Estonian Health Insurance Fund must ensure replacement income for them. For the 4th until 8th day of sickness, the employer must pay the employee a mandatory sickness benefit which makes up 70 per cent of the average remuneration of the employee. In addition, it is possible for an employer to pay a voluntary benefit tax-free until the end of the period for the payment of the mandatory benefit so that the employee would retain their average remuneration during that time. However, the current Act does not allow employers to pay voluntary sickness benefit to women released from work due to illness or injury during their pregnancy, and therefore an allowance for the preservation of earnings for a pregnant employee may be lower than that of other employees. The Estonian Health Insurance Fund pays sickness benefit to a pregnant employee to the extent of 70 per cent of their average income in the previous calendar year.
The Bill on Amendments to § 3 of the Social Tax Act and Amendments to § 34 of the Income Tax Act (260 SE), initiated by the Social Affairs Committee, will give employees an opportunity to also preserve the average pay for pregnant employees during their sickness absence. With a view to ensuring equal treatment, the additional sickness benefit paid until the eighth day of sick leave is exempt from social tax. According to the Bill, the social tax incentive on the benefit will also extend to pregnant sole proprietors. During the second reading, an amendment was made to the Bill to preclude the possibility that the calculated sickness benefit paid to a sole proprietor who is pregnant would be deducted from income and thereby be exempted from income tax insofar as the sickness benefits paid by both the employer and the Estonian Health Insurance Fund are subject to income tax.
The Bill was initiated when the Chancellor of Justice proposed that the provisions that do not ensure that, in the event of sickness, pregnant employees have the right to a replacement income which is at least equivalent to that of other employees be brought into conformity with the Constitution.
Another Bill passed the second reading
The purpose of the Bill on Amendments to the Value Added Tax Act and the Taxation Act (225 SE), initiated by the Government, is to improve the fight against VAT fraud in cross-border e-commerce.
The Bill will establish an obligation for payment service providers to store the data regarding the payees of cross-border payments and to transmit them to the tax authority quarterly if the total number of payments per payee exceeds 25 payments in a quarter. Tax authorities will transmit the data to the European Union’s central electronic system of payment information.
The Bill is connected with an EU directive that Members States will have to transpose and implement from next year.
The Riigikogu rejected 21 draft Resolutions and Bills
The Draft Resolution of the Riigikogu “Making a proposal to the Government of the Republic to abandon the plan to additionally tax packaging and plastics” (65 OE), submitted by Isamaa Parliamentary Group, was intended to propose that the Government abandon the plan to additionally tax packaging and plastics. According to the presenters of the draft Resolution, the aim of reducing packaging waste is right but it is wrong to do this through additional taxation.
13 members of the Riigikogu voted in favour of passing the draft Resolution. A majority vote of the membership of the Riigikogu was required for the draft Resolution to be passed, thus the draft Resolution was rejected.
The Draft Resolution of the Riigikogu “Making a proposal to the Government of the Republic to abandon the plan to eliminate the increased tax allowance for children” (66 OE), submitted by Isamaa Parliamentary Group, was intended to propose that the Government abandon the plan to eliminate the increased tax allowance for children. According to the presenters of the draft Resolution, it is wrong to eliminate the tax allowance, considering the demographic situation of Estonia.
During the debate, Varro Vooglaid took the floor on behalf of the Estonian Conservative People’s Party Group, Andre Hanimägi on behalf of the Centre Party Group, and Mart Maastik on behalf of Isamaa Parliamentary Group.
23 members of the Riigikogu voted in favour of passing the draft Resolution. A majority vote of the membership of the Riigikogu was required for the draft Resolution to be passed, thus the draft Resolution was rejected.
According to the Bill on Amendments to the Weapons Act (19 SE), initiated by the Estonian Conservative People’s Party Group, people of undetermined nationality would have lost the right to hold weapons permit from 15 March next year.
At present, people of undetermined nationality may hold a weapons permit, an acquisition permit, a parallel weapons permit, a permit to carry a weapon, a collection permit, or a European firearms pass until the date of expiry indicated on the permit or authorisation or until any grounds for revoking the permit or authorisation become evident. The Bill would have established that owners of weapons who are of undetermined nationality have a transition period equal to the transition period for citizens Russia and Belarus whose weapons permits will expire and who will have to give up their weapons by 15 March 2024 at the latest.
During the debate, Henn Põlluaas took the floor on behalf of the Estonian Conservative People’s Party Group.
The lead committee moved to reject the Bill at the first reading. 49 members of the Riigikogu voted in favour of the motion and 11 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (75 SE), initiated by Members of the Riigikogu Evelin Poolamets, Helle-Moonika Helme and Rain Epler, was intended to increase the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 11.97. According to the initiators, increasing the revenue base of local governments will help compensate for the increased expenditure of recent years and will allow them to perform their tasks better.
During the debate, Anti Allas took the floor on behalf of the Social Democratic Party.
The lead committee moved to reject the Bill at the first reading. 41 members of the Riigikogu voted in favour of the motion and 19 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (88 SE), initiated by Members of the Riigikogu Kert Kingo, Arvo Aller and Siim Pohlak, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 12.08 per cent.
The lead committee moved to reject the Bill at the first reading. 40 members of the Riigikogu voted in favour of the motion and 16 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (110 SE), initiated by Members of the Riigikogu Martin Helme, Leo Kunnas, Ants Frosch, Henn Põlluaas, Kert Kingo and Rain Epler, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 12.05 per cent.
The lead committee moved to reject the Bill at the first reading. 40 members of the Riigikogu voted in favour of the motion and 15 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (112 SE), initiated by Members of the Riigikogu Kert Kingo, Jaak Valge and Varro Vooglaid, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 12 per cent.
The lead committee moved to reject the Bill at the first reading. 37 members of the Riigikogu voted in favour of the motion and 15 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (116 SE), initiated by Members of the Riigikogu Martin Helme, Evelin Poolamets and Helle-Moonika Helme, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 12.14 per cent.
The lead committee moved to reject the Bill at the first reading. 40 members of the Riigikogu voted in favour of the motion and 16 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (127 SE), initiated by Members of the Riigikogu Ants Frosch, Mart Helme and Leo Kunnas, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 12.07 per cent.
The lead committee moved to reject the Bill at the first reading. 40 members of the Riigikogu voted in favour of the motion and 19 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (130 SE), initiated by Members of the Riigikogu Rain Epler and Martin Helme, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 12.04 per cent.
The lead committee moved to reject the Bill at the first reading. 37 members of the Riigikogu voted in favour of the motion and 20 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (133 SE), initiated by Members of the Riigikogu Arvo Aller, Rain Epler and Evelin Poolamets, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 12.02 per cent.
The lead committee moved to reject the Bill at the first reading. 40 members of the Riigikogu voted in favour of the motion and 21 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (150 SE), initiated by Members of the Riigikogu Helle-Moonika Helme, Arvo Aller and Martin Helme, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 11.98 per cent.
The lead committee moved to reject the Bill at the first reading. 40 members of the Riigikogu voted in favour of the motion and 20 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (151 SE), initiated by Members of the Riigikogu Rain Epler and Helle-Moonika Helme, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 12.16 per cent.
The lead committee moved to reject the Bill at the first reading. 42 members of the Riigikogu voted in favour of the motion and 20 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (155 SE), initiated by Members of the Riigikogu Rain Epler, Helle-Moonika Helme and Kert Kingo, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 12.12 per cent.
The lead committee moved to reject the Bill at the first reading. 36 members of the Riigikogu voted in favour of the motion and 20 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (181 SE), initiated by Members of the Riigikogu Leo Kunnas, Mart Helme and Ants Frosch, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 11.99 per cent.
The lead committee moved to reject the Bill at the first reading. 38 members of the Riigikogu voted in favour of the motion and 20 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (194 SE), initiated by Members of the Riigikogu Jaak Valge, Arvo Aller and Varro Vooglaid, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 12.11 per cent.
The lead committee moved to reject the Bill at the first reading. 39 members of the Riigikogu voted in favour of the motion and 18 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (199 SE), initiated by Members of the Riigikogu Jaak Valge, Anti Poolamets and Helle-Moonika Helme, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 12.13 per cent.
The lead committee moved to reject the Bill at the first reading. 35 members of the Riigikogu voted in favour of the motion and 17 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Income Tax Act (253 SE), initiated by Members of the Riigikogu Helle-Moonika Helme, Evelin Poolamets, Martin Helme and Anti Poolamets, would have increased the rate of the income tax transferred to the budget of local authorities from 11.96 per cent to 12.01 per cent.
The lead committee moved to reject the Bill at the first reading. 42 members of the Riigikogu voted in favour of the motion and 14 voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Local Government Organisation Act (63 SE), initiated by Isamaa Parliamentary Group, was intended to provide that, in municipal councils, the remuneration and compensation paid to local government executives may be changed only for the next membership of the council.
According to the initiators, the purpose of the amendment is to preclude cases where municipal councils raise the salaries of local government executives immediately after elections. In their opinion, it is not right that municipal councils should discuss and decide on the increase of the salaries of the chairs and deputy chairs of municipal councils, city mayors, and rural municipality mayors elected by them, or of members of city and municipal governments.
The lead committee moved to reject the Bill at the first reading. 42 members of the Riigikogu voted in favour of the motion and five voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Citizenship Act (67 SE), initiated by Isamaa Parliamentary Group, was intended to preclude the grant and restoration of Estonian citizenship to people who have been repeatedly convicted of intentionally committed criminal offences even if their convictions have been spent. According to the initiators, the same prohibition had also initially been in the Citizenship Act passed in 1995.
Under the current Act, as an exception, Estonian citizenship may be granted or restored to a person who has been repeatedly convicted of intentionally committed criminal offences and whose convictions have been spent, taking into consideration the circumstances related to the commission of the criminal offences and the person of the offender.
During the debate, Anti Poolamets took the floor on behalf of the Estonian Conservative People’s Party Group.
The lead committee moved to reject the Bill at the first reading. 45 members of the Riigikogu voted in favour of the motion and five voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
The Bill on Amendments to the Use of Privatisation Proceeds Act (70 SE), initiated by Isamaa Parliamentary Group, was intended to allow privatisation proceeds to also be used for the maintenance, repair, conservation, restoration and reconstruction of a structure returned in the course of ownership reform and located in a heritage conservation area.
The initiators find that, if owners of returned historical structures located in heritage conservation areas could also apply for the grants allocated from the ownership reform reserve fund, this would increase the opportunities to preserve the valuable cultural heritage of Estonia.
During the debate, Anti Poolamets took the floor on behalf of the Estonian Conservative People’s Party Group.
The lead committee moved to reject the Bill at the first reading. 44 members of the Riigikogu voted in favour of the motion and five voted against. Thus, the Bill was rejected, and it was dropped from the proceedings.
Chair of the Finance Committee Annely Akkermann said in her speech that Estonia supported the coordination of the economic and fiscal policies of the EU countries through equal and clear rules. “We want to see the debt burden reduced and the deficit remain under three percent of GDP, with an exception for the increase in defence spending in the current security situation. The backbone of inflation has been broken, but it is still slightly above the preferred level. Keeping inflation in check is a coin with the Central Bank’s policy of increasing interest rates on one side and the moderation of countries in increasing expenditure on the other,” Akkerman explained.
She added that countries may have different problems but they all had common aims. “We want to keep the prices stable, to make our economies more modern and sustainable, to protect our nations against aggression. The countries of Europe need to agree upon fiscal policy. We have a common market of goods, labour and capital. We must also have common budget rules.”
Deputy Chair of the European Union Affairs Committee Maria Jufereva-Skuratovski underlined in her speech that due to the recent health care, energy and security crises the public debt of the euro area countries had increased and the inflation continued to be unsustainably high. “The next steps in economic and monetary policy must ensure the competitiveness of the European Union economy, key investments and long-term sustainability,” said Jufereva-Skuratovski, and pointed out that it was important to ensure that the European Union’s debt was reduced. She added that reserve capacities were needed to ensure energy security and emphasised that in Estonia, for example, the possibility of using oil shale should therefore be retained.
Jufereva-Skuratovski spoke at the first session of the Conference that was dedicated to the challenges of government and the economic recovery of the European Union in the international context. Akkerman spoke at the session that focused on the architecture of the new governance. More specific topics of the session were medium-term economic and budget plans, indicators of state budget net expenditure increase, as well as sustainability of debt and fiscal prudence within the framework of the economic and monetary union. Tomorrow, it is planned to hold two more sessions. Integration of the social dimension in economic governance will be discussed at the first session and open strategic autonomy at the second.
The purpose of the Inter-Parliamentary Conference on Stability, Economic Coordination and Governance is to develop the cooperation of parliaments within the framework of the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union. The Conference was established in 2013 at the Conference of Speakers of the European Union Parliaments (EUSC).
In her report, Kallas recalled that the strategy that had been adopted in 2021 had established a framework consolidating Estonia’s major strategic goals and courses of action agreed nationally and taking account of international obligations. It is taken into account when making budget decisions. She noted that the strategy had been drafted in co-creation with thousands of people and over several years. “Thus ‘Estonia 2035’ is our common agreement, our expectation to Estonia’s future, as well as our promise to our children.”
According to Kallas, “Estonia 2035” sets five equal and interlinked strategic goals. “First, Estonia’s people are smart, active and care about their health. Second, Estonia’s society is caring, cooperative, and open. Third, Estonia’s economy is strong, innovative, and responsible. Fourth, Estonia offers a safe and high-quality living environment that takes into account the needs of all its inhabitants. Estonia is an innovative, reliable, and people-centered country. The basic principle underpinning these goals is a firm conviction that Estonia is and will remain a democratic and secure state founded on freedom, justice and the rule of law which preserves and develops the Estonian nation, language, and culture,” Kallas said.
In her report, the Prime Minister focused on three topics. They were, first, a reliable country and a safe living environment; second, a responsible, innovative, and knowledge-based economy; and third, smart and active people who care about their health. “It is good to see that we are moving towards the expected outcome, or the target level set has already been achieved, in most of the indicators. They have been marked in either yellow or green in the application “Tree of Truth” by Statistics Estonia. However, it must be admitted that we are moving away from the desired outcome in several areas, and they are above all linked to the deteriorated security situation and the polarisation of society. There is also room for development in climate and economic indicators where we have set very ambitious goals for ourselves,” Kallas said.
Kallas pointed out that currently no concession could be made in security, and that it was existentially important to Estonia that Ukraine would win the war against Russia. She added that the transition to Estonian as the language of instruction was also important in increasing our security and safety level. “We have made a start with it, and we are going to complete it,” Kallas confirmed. At the same time, Kallas noted that, if we acted smartly, we could use the climate neutrality goal to enhance the competitiveness of our economy. “I re-affirm: investment in power generation from oil shale is a thing of the past,” she said. Kallas specified that the share of renewable energy in final energy consumption had been 38 per cent in the previous year. “While this is six percentage points more than the starting level provided in the strategy ‘Estonia 2035’, our goal is that the share of renewable energy in final consumption would be at least 65 per cent,” she noted among other things.
During the debate, Yoko Alender (Reform Party), Hendrik Johannes Terras (Estonia 200), Urmas Reinsalu (Isamaa), Tanel Kiik (Centre Party), Mart Helme (Estonian Conservative People’s Party and Reili Rand (Social Democratic Party) took the floor on behalf of their parliamentary groups.
A Bill passed the first reading
The Bill on Amendments to the Nature Conservation Act and the Land Register Act (301 SE), initiated by the Government, passed the first reading. It will eliminate the right of pre-emption that the state has upon transfer of immovables containing natural objects. Under the current Act, the state has a right of pre-emption upon transfer of an immovable located within the boundaries of a shore building exclusion zone, protection site of a species in the protected category I, limited management zone of a protected natural monument, protected area, or limited-conservation area.
In recent years, the state has assessed the application of a right of pre-emption in respect of thousands of purchase and sale transactions but has not used it. According to the explanatory memorandum, the elimination of the right of pre-emption will reduce the workload of administrative bodies in the transfer of immovables containing natural objects and will speed up the conclusion of purchase and sale transactions.
For the purpose of economising, the Bill introduces an amendment according to which damage caused by animals will not be compensated if no state budget funds have been earmarked for the compensation of damages caused by animals ranking lower in the priority list of applications. At the same time, the Bill will increase the threshold for the compensation of the costs incurred to prevent damages caused by animals in order to avoid or prevent damage that might otherwise have to be compensated.
Among other amendments, the Bill will provide the possibility to choose whether a notice concerning the initiation of the proceedings for placing a natural object under protection is published in a national daily newspaper or in a local newspaper and not in both as provided by current procedure. The Bill will also eliminate the requirement to ask for a separate permission when persons carrying out state monitoring or research commissioned by the manager of the protected area need to move around in areas that are under movement restrictions in protected areas.
During the debate, Arvo Aller (Estonian Conservative People’s Party) and Andres Metsoja (Isamaa) took the floor on behalf of their parliamentary groups.
The Estonian Conservative People’s Party Group moved to reject the Bill at the first reading. 11 members of the Riigikogu voted in favour of the motion and 52 were against. Thus, the motion was not supported, and the first reading of the Bill was concluded.
Hussar said in his speech that Estonia would continue providing strong military, economic and political support to Ukraine until Ukraine had won the war started by Russia, restored its territorial integrity and become a member of the European Union and NATO. “To achieve this, Ukraine needs rapid delivery of the promised equipment to the battlefield. In addition to arms and ammunition, Estonia, together with Luxembourg, supports the development of the ICT infrastructure of the Ukrainian Armed Forces,” he added.
Hussar called on other countries to support the peace formula proposed by Ukrainian President that in his opinion should be the basis of further efforts. He emphasised that there could be no lasting peace if the aggressor won.
According to the President of the Riigikogu, establishing an international special tribunal to bring all perpetrators of Russia’s crime of aggression to justice should be made a priority. “Russia must be held accountable for all crimes committed in Ukraine, including the crime of aggression. No one should be allowed to hide behind immunity,” he said.
Hussar also pointed out that Russia must compensate the damage its activities had caused in Ukraine. He said that a Bill providing for national regulations on how to use the assets of sanctioned persons frozen in Estonia to compensate the war damage caused to Ukraine was being proceeded by the Riigikogu. “Ways for using frozen assets must be looked for both at the European Union level and separately in each country,” he stated, considering it necessary to also strengthen the sanctions against Russia and restrict Russia’s activities on the international arena.
At the Parliamentary Summit held in Prague, the situation in Crimea is discussed, focusing on sanctions, ensuring of freedom of navigation, situation of human rights and the economic and environmental consequences of Russia’s temporary occupation. The representatives of parliaments also speak about supporting of Ukraine and increasing international pressure on Russia on a wider scale, with the aim of restoring the territorial integrity of Ukraine. At the end of the Summit, the participants will also adopt a Joint Statement.
Hussar also plans to have a meeting with President of the Parliament of Moldova Igor Grosu during the Second Parliamentary Summit.