ESTONIA

The Foreign Affairs Committee in New Zealand: Common values and worldview bring us together

By
Helena-Reet Ennet
-

NordenBladet —

This was the first time that a delegation of a Committee of the Estonian Parliament visited New Zealand. The visit took place at the same time as the European Union–New Zealand Business Summit, which was dedicated to the first anniversary of the EU-New Zealand Free Trade Agreement. Chairman of the Foreign Affairs Committee Marko Mihkelson said that the Free Trade Agreement was not only economically important at present, but also had a greater geopolitical dimension that united the partners.

In Auckland, the delegation of the Foreign Affairs Committee met with Deputy Prime Minister of New Zealand David Seymour, Minister of Trade Todd McClay, Minister of Science, Innovation and Technology Shane Reti, and Chairperson of the Foreign Affairs, Defence and Trade select Committee of the Parliament of New Zealand Tim van de Molen. The delegation also participated in the roundtable discussion at the New Zealand Institute of International Affairs, which focused on the foreign and security policy challenges in Europe and the Indo-Pacific region. Honorary Consul of Estonia David Raudkivi organised a meeting with local Estonians for the members of the Foreign Affairs Committee.

All meetings and presentations focused on the development of bilateral relations, the geopolitical situation in the world, and opportunities for cooperation between like-minded countries in issues relating to hybrid threats, shadow fleets, and cybersecurity. It was underlined that Russia’s war of aggression must end with Ukraine’s victory, otherwise it would send a signal that borders can be shifted by force. “We also learnt about New Zealand’s views on security in the Pacific region and recognised how much our two countries have in common in terms of defending our values,” Mihkelson said.

The delegation of the Foreign Affairs Committee, which consists of the Chairman Marko Mihkelson, and members of the Committee Henn Põlluaas and Juku-Kalle Raid, continues its visit in Australia during this week. In Sydney, the members of the Foreign Affairs Committee met with members of the Ukrainian community of New South Wales. They then travelled on to the capital, Canberra, where they will have meetings with representatives of the Parliament, the Government, and think tanks.

The members of the Foreign Affairs Committee will meet with Assistant Minister for Foreign Affairs Matt Thistlethwaite, Deputy Secretary of the Department of Foreign Affairs and Trade Jamie Isbister, First Assistant Secretary of Europe Division of the Department of Foreign Affairs and Trade Christian Hirst, and First Assistant Secretary of East Asia Division of the Department of Foreign Affairs and Trade Michael Growder. They also plan to participate in several conferences and roundtables organised by think tanks. In addition, the Estonian delegation will visit the Estonian House and meet with the Estonian community.

The visit of the delegation of the Foreign Affairs Committee of the Riigikogu to New Zealand and Australia takes place from 21 October to 3 November.

For more information and comments, please contact:
Marko Mihkelson, +372 514 1442

Riigikogu Press Service
Karin Kangro
+372 631 6356, +372 520 0323
karin.kangro@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: The Foreign Affairs Committee in New Zealand: Common values and worldview bring us together

Source: Parliament of Estonia

The Bill on the transposition of the EU Cybersecurity Directive passed the first reading

By
Helena-Reet Ennet
-

NordenBladet —

The Bill on Amendments to the Cybersecurity Act and Other Acts (Transposition of the Second Cybersecurity Directive) (739 SE), initiated by the Government of the Republic, will transpose into Estonian law the NIS2 Directive of the European Union. The directive is aimed at harmonising the rules for managing cyberthreats and to raise the level of cybersecurity within the EU.

According to the explanatory memorandum, the transposition of the directive will increase the number of entities subject to cybersecurity requirements in Estonia by about 3,000 – bringing the total to around 6,500. The new rules will apply in such areas as the energy, transport, healthcare, digital infrastructure, and public administration sectors – that is, to the institutions providing essential or critical services. The enterprises subject to the requirements will have to implement security measures and to notify the supervisory authority of any cyber incidents with a significant impact. According to the Bill, the authority in question will be the Information System Authority, whose tasks will be expanded to include supervision of cybersecurity of power grids in accordance with the European Commission Regulation.

According to the Bill, the newly covered enterprises will have three years from the Act’s entry into force to comply with the cybersecurity requirements. To facilitate this, the state is preparing support measures and various instruction materials.

According to the explanatory memorandum, the harmonisation of the requirements will raise the cybersecurity level of the organisations crucial to society and the economy, and will improve the competitiveness of the enterprises.

An Act was passed

At today’s sitting, the Riigikogu passed the Act on the Ratification of the Agreement between the Republic of Estonia and the Sultanate of Oman for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and its Protocol (692 SE), initiated by the Government. The aim of the Act is to ratify the corresponding Agreement between Estonia and Oman, and its Protocol.

The agreement for the elimination of double taxation is broadly in line with the Model Convention of the Organisation for Economic Co-operation and Development. The agreement prohibits the source state from taxing certain types of income, imposes a lower-than-usual tax rate or requires the residence state to introduce tax exemptions or deductions. The agreement also establishes rules for resolving dual residency, which cannot be addressed through national legislation.

As of the end of 2024, Estonia had agreements for avoidance of double taxation in force with 63 countries. The purpose of the agreements is to facilitate investments between countries.

51 members of the Riigikogu supported the passing of the Act.

Verbatim record of the sitting (in Estonian)

Video recording will be available on the Riigikogu YouTube channel.

Riigikogu Press Service
Maiki Vaikla
+372 631 6456, +372 5666 9508
maiki.vaikla@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: The Bill on the transposition of the EU Cybersecurity Directive passed the first reading

Source: Parliament of Estonia

The National Defence Committee discussed cooperation and changes related to airspace violations with Finnish colleagues

By
Helena-Reet Ennet
-

NordenBladet —

At the meeting, Chairman of the National Defence Committee Kalev Stoicescu highlighted the importance of close defence cooperation between Estonia and Finland. Recalling Russia’s drone attack in Poland and airspace violations in Estonia and other European countries, he specifically pointed out the need to strengthen cooperation between the air forces, following the example of the navies of the two countries.

Stoicescu expressed his hope that the Eduskunta would soon begin discussing amendments that would allow Finland to enter the airspace of other allies if necessary in response to airspace violations. “Decisive strengthening of cooperation in NATO’s joint airspace will send a strong message to Russia that such violations will not go unpunished,” said Stoicescu, and added that more had to be done to deter the activities of Russia’s shadow fleet in the Baltic Sea.

At the working meeting, the committees discussed Russia’s ongoing war of aggression in Ukraine, support for Ukraine, and the increasing of pressure on Russia. They also spoke about the upcoming withdrawal from the Ottawa Convention banning anti-personnel landmines, and the future production and use of anti-personnel landmines, as well as about relations with the United States and the security situation more broadly.

The Defence Committee of the Eduskunta is on a two-day visit to Estonia. Yesterday, the 10-member delegation met with Undersecretary for Defence Capability at the Ministry of Defence Kadri Peeters and Commander of the Estonian Defence Forces, Lieutenant General Andrus Merilo, and visited NATO Force Integration Unit in Tallinn. Today the members of the Eduskunta Defence Committee will visit the unmanned aerial vehicle (UAV) training centre in Nurmsi and get an overview of the activities of the Estonian Defence League.

The National Defence Committee of the Riigikogu and the Defence Committee of the Eduskunta have been cooperating closely and holding annual working meetings since 1993.

Photos (Erik Peinar / Chancellery of the Riigikogu)

Riigikogu Press Service
Karin Kangro
+372 631 6356, +372 520 0323
karin.kangro@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: The National Defence Committee discussed cooperation and changes related to airspace violations with Finnish colleagues

Source: Parliament of Estonia

The Riigikogu amended the agenda for the working week

By
Helena-Reet Ennet
-

NordenBladet —

They are the Draft Resolution of the Riigikogu “Making a proposal to the Government of the Republic to lower the VAT on food to 9 per cent” (672 OE), submitted by the Centre Party Group.

The interpellation concerning the availability of education and the ministry’s plans to improve it (No. 798) submitted to Minister of Regional Affairs and Agriculture Hendrik Johannes Terras, and the interpellations concerning the Prime Minister’s confusing statements regarding the 800 million euro (No. 813) and the tax structure in Estonia (No. 817) submitted to Minister of Finance Jürgen Ligi were excluded from the agenda on the motion of interpellators.

Aivar Kokk and Lauri Laats took the floor during the open microphone.

Verbatim record of the sitting (in Estonian)

Video recording of the sitting will be available to watch later on the Riigikogu YouTube channel.

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

Link uudisele: The Riigikogu amended the agenda for the working week

Source: Parliament of Estonia

The Legal Affairs Committee sent the Bill on the Estonian-Swedish prison rental agreement to the first reading

By
Helena-Reet Ennet
-

NordenBladet —

According to Chairman of the Legal Affairs Committee Madis Timpson, the agreement to be ratified by the Bill will enable the reasonable use of empty prison space and create nearly 400 jobs in South Estonia. “Currently we keep unused prison space empty and pay for its maintenance from the taxpayers’ money, but the prison lease agreement will allow us to put idle space to work to make money. The additional jobs will also bring additional tax revenue to the state,” he said, adding that the Committee had unanimously supported the conclusion of the first reading of the Bill.

The Bill on the Ratification of the Agreement between the Republic of Estonia and the Kingdom of Sweden on the Enforcement in Estonia of Swedish Sentences of Imprisonment (682 SE), initiated by the Government, will ratify the agreement under which Estonia is prepared to accept Swedish prisoners and enable the enforcement of their sentences in Estonia. The Agreement was signed in June in Stockholm, Sweden.

The Agreement sets out rights and obligations and regulates the enforcement of sentences, prison conditions, as well as the distribution of costs, and supervision. According to the explanatory memorandum of the Bill, the number of prisoners in Estonia is steadily decreasing, while the costs of maintaining prisons remain high. Leasing out prison places will enable Tartu Prison to remain in operation, ensure that jobs in the region are preserved and create new jobs, and bring at least 30 million euros in additional revenue to the state budget. According to the explanatory memorandum, the agreement offers Sweden a solution to the temporary overcrowding of its prison system.

According to the Agreement, Estonia will only accept prisoners who meet certain criteria, which means that security risks as well as possible preventive and mitigation measures have been determined in cooperation between the Police and Border Guard Board, the Security Police Board, and the Ministry of the Interior. The Agreement provides that foreign prisoners will be sent back to Sweden not later than one month before the end of their sentence.

According to the explanatory memorandum, it is planned to bring the first foreign prisoners to Tartu Prison in the second half of 2026. The arrival of prisoners is planned to take place in stages, so that Tartu Prison will have time to make the necessary preparations. In total, the agreement allows to bring up to 600 prisoners from Sweden to Estonia.

According to the Bill, the Agreement will enter into force on the 30th day after both Estonia and Sweden have fulfilled the necessary national requirements and notified each other in writing.

Minister of Justice and Digital Affairs Liisa Pakosta, Deputy Secretary General on Prison Service at the Ministry of Justice and Digital Affairs Rait Kuuse and Adviser of the Penal Law and Procedure Division of the Ministry of Justice and Digital Affairs Martin Ziehr gave an overview of the Bill at the sitting of the Legal Affairs Committee.

The Committee decided to make a proposal to the Board of the Riigikogu to include the Bill on the agenda for the sitting of 4 November and conclude the first reading of the Bill. To ratify the Agreement , the Bill also has to pass the second reading.

Riigikogu Press Service
Karin Kangro
+372 631 6356, +372 520 0323
karin.kangro@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: The Legal Affairs Committee sent the Bill on the Estonian-Swedish prison rental agreement to the first reading

Source: Parliament of Estonia

European Union Affairs Committee: Europe has to give up Russian natural gas as soon as possible

By
Helena-Reet Ennet
-

NordenBladet —

Chairman of the European Union Affairs Committee Peeter Tali said that at its sitting, the Committee confirmed that Estonia supported increasing the European Union’s energy independence from Russia and therefore considered it important that negotiations to end natural gas imports from Russia should be concluded as quickly as possible and that natural gas should be abandoned at the earliest opportunity.

“Buyers of Russian gas and other fossil fuels are directly financing Russia’s war in Ukraine and its war machine. Another threat is that not only Russian influence but also corruption, which undermines our rule of law, is inevitably spreading through the pipelines into the heart of Europe,” Tali underlined. “It is also appropriate to discuss the ending of natural gas imports from Russia at next week’s European Council and General Affairs Council meetings. The sooner we stop buying Russian natural gas, the happier we will be living in a free Europe in the longer perspective.”

The approved positions state that Estonia supports the goal of ending imports of Russian natural gas and liquefied natural gas into the European Union and the implementation of the prohibition as soon as possible. In Estonia’s opinion, long-term gas supply contracts should be terminated as soon as possible, but not later than 1 January 2028. On that date, the transition provisions arising from the types of contracts and the transition periods for countries without sea borders must expire.

Estonia also supports ending oil imports from Russia by 2028 at the latest. In addition, Estonia considers it necessary that the European Commission submitted a proposal to end imports of Russian nuclear fuel and technology as soon as possible.

Minister of Energy and the Environment Andres Sutt gave an overview of the positions of the Government on the proposal for a Regulation at today’s sitting of the European Union Affairs Committee. The European Union Affairs Committee decided to specify the positions presented by the Government, taking into account the opinion of the Economic Affairs Committee of the Riigikogu, and to emphasise that the gas supply contracts should be terminated as soon as possible.

Riigikogu Press Service
Merilin Kruuse
+372 631 6592; +372 510 6179
merilin.kruuse@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: European Union Affairs Committee: Europe has to give up Russian natural gas as soon as possible

Source: Parliament of Estonia

Delegation of the Foreign Affairs Committee will visit New Zealand and Australia

By
Helena-Reet Ennet
-

NordenBladet —

According to Chairman of the Foreign Affairs Committee Marko Mihkelson, a large part of the Committee’s activities are focused on exchanging information and providing explanations to allies in Europe and the United States in order to help Ukraine win the war of aggression initiated by Russia, but at the same time, there is also a need to strengthen contacts with like-minded countries further away. “In the current security policy situation, we have to maintain and strengthen relations with our allies in every corner of the world. Despite the distance, both Australia and New Zealand are our close partners, who are a part of the democratic world in the Pacific region, and who also are consistent supporters of Ukraine,” he said.

Mihkelson noted that the Foreign Affairs Committee had been paying close attention to developments in the Asian region for years, and last autumn, delegation of the Committee visited Taiwan and South Korea. “In New Zealand and Australia, the Foreign Affairs Committee focuses on strengthening bilateral relations. This is the first time that a delegation from an Estonian Parliamentary Committee has visited these countries. There is also a notable Estonian community in both countries,” he said.

Mihkelson added that the second, but equally important, aim of the visit was to gain an overview of the regional security situation, which had also been affected by Russia’s war of aggression in Ukraine. “We want to better understand the regional security situation there, and how New Zealand and Australia perceive the threats posed by China and Russia. Of course, we will also explain our views during the meetings,” he said.

The delegation of the Foreign Affairs Committee, which consists of the Chairman, and members of the Committee Henn Põlluaas and Juku-Kalle Raid, will be on a visit to Australia and New Zealand from 21 October to 3 November.

In Auckland, the Estonian delegation will participate in the European Union – New Zealand Business Summit, where Mihkelson will speak at several panel discussions. The Estonian delegation will meet with Chairperson of the Foreign Affairs, Defence and Trade select Committee of the Parliament of New Zealand Tim van de Molen and Minister of Trade Todd McClay, participate in a round table discussion at the New Zealand Institute of International Affairs, and meet with the local Estonian community.

In Sydney, Australia, the members of the Foreign Affairs Committee will meet members of the Ukrainian community of New South Wales. From Sydney, they will travel to Canberra. They will participate in a roundtable held at the Centre for European Studies of the Australian National University.

In Canberra, the delegation will also have meetings with the Joint Standing Committee on Foreign Affairs, Defence and Trade, and the Australia-Estonia Parliamentary Friendship Group, as well as with Assistant Minister for Foreign Affairs Matt Thistlethwaite, Deputy Secretary of the Department of Foreign Affairs and Trade Jamie Isbister and First Assistant Secretary, Europe Division, of Department of Foreign Affairs and Trade Christian Hirst. They plan to participate in several conferences and roundtables organised by think tanks. The Estonian delegation will also visit the Estonian House and meet with the Estonian community.

For more information and comments, please contact:
Marko Mihkelson, +372 514 1442

Riigikogu Press Service
Karin Kangro
+372 631 6356, +372 520 0323
karin.kangro@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: Delegation of the Foreign Affairs Committee will visit New Zealand and Australia

Source: Parliament of Estonia

PACE Network meets in Tallinn to find solutions for helping Ukrainian children

By
Helena-Reet Ennet
-

NordenBladet —

The meeting begins at 9 a.m. in the Conference Hall of the Riigikogu and can be followed via webcast.

The meeting will focus on practical steps which can be taken to support both the physical and the psychological rehabilitation of Ukrainian children who have suffered traumatic experiences as a result of war. The meeting will be opened by President of the Riigikogu Lauri Hussar, Minister of Foreign Affairs of Estonia Margus Tsahkna, Head of the Estonian delegation to PACE Kadri Tali and member of the delegation Eerik-Niiles Kross.

“Deportation of children is genocide – it must end,” President of the Riigikogu Lauri Hussar underlined. He recalled that the European Parliament had demanded the same in its Resolution in May. “I am very proud that our Riigikogu is today addressing the most inhumane aspect of the destruction of Ukraine’s identity, and I assure you that the day will come when these children will be brought back to their homes.”

According to Head of the Estonian delegation to PACE Kadri Tali, the well-being and future of Ukrainian children is also a priority for all Estonian people. “Our people have also been in a position where they needed help in a foreign country, and therefore we know and feel how important help, understanding, and support are for the survival of a nation,” she said. 

The Network brings together members of parliaments from PACE countries, Ukrainian officials, Estonian experts, and representatives of international organisations. Discussions will focus on two key dimensions: physical rehabilitation of children, which includes medical care, rehabilitation centres, and prosthetics; and psychological recovery, which involves trauma relief, resilience building, and reintegration of children into their families and communities.

The speakers at the session on physical rehabilitation will include Minister of Social Affairs of Estonia Karmen Joller, representative of the Ministry of Health of Ukraine Vasyl Strilka, Head of Physical Rehabilitation Department of Okhmatdyt National Children’s Hospital Pavlo Andrieiev, CEO of Superhumans Rehabilitation Centre Olga Rudnieva, psychiatrist Roksolana Yurchyshyn and Estonian expert Anna Mikkonen-Berg. The session will be moderated by Head of the Network Olena Khomenko.

In the afternoon, the participants of the meeting will have the opportunity to watch the documentary “Stolen Childhood”, which highlights the impacts of the war on children.

The session on psychological rehabilitation will be moderated by Undersecretary for Global Affairs at the Ministry of Foreign Affairs Minna-Liina Lind. Presentations will be delivered by Chair of the Social Affairs Committee of the Riigikogu Signe Riisalo, Special Envoy of the Secretary General of the Council of Europe on the situation of children of Ukraine Þórdís Kolbrún Reykfjörd Gylfadóttir (video address), Secretary of the Coordination Centre for Family Upbringing and Child Care Development Kyrylo Lapko, child psychiatrists Nataliia Masiak and Roksolana Yurchyshyn, and Adviser of the Mental Health Department of the Ministry of Social Affairs Katrin Aarma.

Thematic brainstorming sessions will be moderated by Miapetra Kumpula-Natri and Eerik-Niiles Kross.

On Friday, the participants of the meeting will visit the Ukrainian School, and on Saturday, the Ukrainian Cultural Centre.

In August, the Heads of the Nordic-Baltic (Danish, Estonian, Finnish, Icelandic, Latvian, Lithuanian, Norwegian and Swedish) Delegations to the Parliamentary Assembly of the Council of Europe signed a Joint Statement in Jūrmala, Latvia, where they emphasised that all abducted Ukrainian children must be returned to their families immediately. They also promised to work for accountability for all atrocities committed and to ensure that justice was delivered to the victims of aggression.

In February last year, the plenary of the Riigikogu adopted a Statement in which it condemned the deliberate and systematic deportation of Ukrainian children by Russia in violation of international law, and demanded the release of such children and the ensuring of their safe return to Ukraine. In the Statement, the Riigikogu pointed out that the deportation of children from Ukraine to Russia and Belarus was a war crime and genocide under international law. According to the Statement, the aim of Russia and Belarus is to destroy the Ukrainian nation and identity by killing, wounding, traumatising and relocating Ukrainian children.

During the war of aggression started by the Russian Federation in 2014, hundreds of thousands of children have been taken from the territories of Ukraine to Russia.

Riigikogu Press Service
Merje Meisalu
+372 631 6300, +372 529 9512
merje.meisalu@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: PACE Network meets in Tallinn to find solutions for helping Ukrainian children

Source: Parliament of Estonia

Piotr Serafin at the Riigikogu: Defence is now a European priority

By
Helena-Reet Ennet
-

NordenBladet —

“The war of aggression against Ukraine. Trade tensions and wars. Technological shifts and climate change reshaping industries and societies,” Serafin said. He pointed out that last July, the European Commission had presented its proposal for the next Multiannual Financial Framework – a budget that would take Europe forward to 2035 and beyond. “Our proposal aims to strike a balance. We continue to support the policies that have proven successful. At the same time, we are responding to new challenges – defence, security and competitiveness.”

Serafin said that according to the proposal, cohesion and agriculture would be kept as strong pillars of the EU budget, and their budgets would remain stable. “We focus new resources where the political demand is the highest: defence, security, competitiveness, and border protection,” Serafin explained. He added that National and Regional Partnership Plans would bring together reforms and investments under one coherent framework, linking cohesion, agriculture, and other key programmes with a total envelope of 865 billion euros.

“To strengthen Europe’s capacity to respond to shared challenges at our borders we will integrate the funds for borders, security and migration and integration into the National and Regional Partnerships,” Serafin said. “Member States will receive a pre-allocated amount of EUR 34 billion for migration and border management, three times the current envelope. We will double financing for the Frontex agency and Europol, respectively to EUR 12 billion and EUR 3 billion. The proposal takes into account the specific needs of Member States at the external border, especially in light of the current geopolitical situation.”

Serafin underlined that the European Commission clearly recognized Estonia’s crucial role in safeguarding the Union’s external frontier. That is why the proposal strengthens funding for border management, infrastructure, and resilience measures. He added that the countries bordering Russia and Belarus would benefit from a bonus in the allocation of funds, reflecting their specific challenges both in terms of security and economic development.

European Commission Commissioner for Budget, Anti-Fraud and Public Administration Piotr Serafin at the Riigikogu. Photo: Erik Peinar

“Defence is now a European priority and it is reflected clearly in the numbers,” Serafin said. He pointed out that military mobility would receive 18 billion euros, ten times the current level. “It means roads, bridges, railways and digital infrastructure that serve both civilians and defence. Military mobility will be anchored in the Connecting Europe Facility, ensuring that connectivity, resilience, and security are developed together,” Serafin said, and added that Estonia was using the Connecting Europe Facility to develop the Rail Baltic.

The Commissioner also spoke about the EU’s commitment to Ukraine’s recovery, resilience and path to membership. “Ukraine is not only our partner; it is part of our shared security. Supporting Ukraine is investing in Europe’s own stability,” he said.

According to Serafin, the new multiannual financial framework will be more flexible and responsive. It will have a crisis mechanism allowing Member States to access EU support swiftly in times of major shocks without improvisation or delay.

Serafin underlined that in the present times, it was clear that the European Union budget should focus more on security and defence. This is also the focus of the proposal for a new multiannual financial framework. “It is a budget for an independent Europe: capable of defending its territory and values, connected through the infrastructure of the future, and confident in its ability to act in the world.”

Serafin’s speech was followed by a debate on the matter of significant national importance “Estonia’s choices and opportunities in the European Union’s long-term budget for 2028–2034”, initiated by the European Union Affairs Committee, with presentations by Meelis Meigas, Head of the EU Policy Unit of the Fiscal Policy Department of the Ministry of Finance, and Peeter Tali, Chairman of the European Union Affairs Committee of the Riigikogu.

Verbatim record (in Estonian)

Photos (Erik Peinar / Chancellery of the Riigikogu)

Video recording will be available on the Riigikogu YouTube channel. Video recording of the speech in English.

Riigikogu Press Service
Merilin Kruuse
+372 631 6592; +372 510 6179
merilin.kruuse@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: Piotr Serafin at the Riigikogu: Defence is now a European priority

Source: Parliament of Estonia

The Riigikogu concluded the first reading of four Bills and heard the replies to four interpellations

By
Helena-Reet Ennet
-

NordenBladet —

The Bill on the Ratification of the Convention between the Republic of Estonia and the Principality of Liechtenstein for the Elimination of Double Taxation with respect to Taxes on Income and on Capital and the Prevention of Tax  Evasion and Avoidance and its Protocol (718 SE), initiated by the Government.

The Convention regulates the division of taxation right between the parties to the convention, ensures equal treatment of persons and establishes an obligation to prevent fiscal evasion with respect to taxes on income. Estonia has similar conventions with 63 countries. All agreements for the avoidance of double taxation are based on the OECD Model Convention but are still unique due to the needs of specific contracting countries.

According to the tax convention between Estonia and Liechtenstein, the source state has limited taxing rights on dividend income – the maximum limit of withholding tax is 10 per cent of the gross amount of the dividends if the beneficial owner of the dividends is an individual. In other cases, the source state cannot withhold income tax.  In the case of interest, the rate of tax withheld from interest paid to a natural person resident of the other state may not exceed 10% of the gross amount of the interest. Interest paid to companies is exempt from withholding tax. In the case of royalties, the source state has the right to withhold tax up to 5% of the gross amount of the royalties.

The government approved the convention on 8 May this year and it was signed in Rome on 10 July.

The Bill on the State’s Supplementary Budget for 2025 (733 SE), initiated by the Government, will reduce expenditure by EUR 19.9 million and investment by 12 million, while increasing financing transactions by 72.3 million.

When preparing the Bill, requests from ministries and constitutional institutions for budget reallocation from this year to the following years were taken into account. In addition, the budget of the area of ​​government of the Ministry of Defence will be increased by 39 million for assistance to Ukraine and for defence procurements. In financing transactions, the share capital of Elering Ltd will be increased by 45 million in the area of government of the Ministry of Climate. In the area of ​​government of the Ministry of Economic Affairs and Communications, EUR 27.3 million will be transferred from research and development and innovation expenses to financing transactions to provide innovation loans to companies.

According to the State Budget Act, the Government may initiate a draft supplementary budget not later than three months before the end of the budgetary year.

The Bill on Amendments to the Act on Amendments to the Simplified Business Income Taxation Act and the Income Tax Act and the Repeal of the Security Tax, and the Income Tax Act (734 SE), initiated by the Government, will cancel the two-percentage-point increase in income tax and business account tax rates planned for 2026.  In order to continue supporting Ukraine, the special tax exemption regime for donations to eight charitable associations will be extended by two years.

Urmas Reinsalu from Isamaa Parliamentary Group, Rain Epler from Estonian Conservative People’s Party Group, Riina Sikkut from the Social Democratic Party Parliamentary Group and Minister of Finance Jürgen Ligi took the floor during the debate.

The Bill on Amendments to the State Budget Act and the Act on Amendments to the State Budget Act (736 SE), initiated by the Government, is related to the 2026 State Budget Act.

The Bill will implement the renewed framework for fiscal surveillance in the European Union, specify the role and tasks of the Fiscal Council, and update the requirements of the national fiscal rule. In addition, the structure of the annual state budget law will change, the principles for planning the government reserve will be determined, and the conditions for granting state loans will be specified.  The amendments are technical in nature and will not increase the minister’s rights to amend the budget. Ministers will also have an obligation to inform the Finance Committee of the Riigikogu of any ongoing budget changes, along with explanations.  The conditions for granting subsidies from the state budget will also be regulated and the links between local authorities and the state budget will be specified.

According to the Bill, the new budget structure will come into effect as early as the 2026 state budget.  Several special provisions apply to the entry into force of the draft amendments, such as the restriction on the transfer of the government reserve, and domestic subsidies.

Rain Epler from the Estonian Conservative People’s Party Group, Aivar Kokk from Isamaa Parliamentary Group and Maris Lauri from the Reform Party Parliamentary Group took the floor during the debate.

Minister of Regional Affairs and Agriculture Hendrik Johannes Terras and Minister of Energy and the Environment Andres Sutt replied to interpellations.

Terras replied to the interpellation concerning the revenue base of local governments (No. 802). Sutt  replied to the interpellations concerning the necessity and timeliness of establishing a general nesting peace (No. 804), the future of the Climate Act (No. 809) and the closing down of Endla Nature Centre (No. 815).

The sitting ended at 7.51 p.m.

Verbatim record of the sitting (in Estonian)

Video recording of the sitting will be available to watch later on the Riigikogu YouTube channel.

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

 

Link uudisele: The Riigikogu concluded the first reading of four Bills and heard the replies to four interpellations

Source: Parliament of Estonia

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