Parempoolsed board proposes replacing Estonia’s prime minister before elections
In Estonia, the board of the Parempoolsed political force proposed that the board of the Reform Party recall Kristen Michal from the post of prime minister and appoint an interim head of government until the elections. Lavly Perling wrote about this in a column for ERR News.
In the author’s view, an interim prime minister should halt the adoption of the budget, which, in her assessment, increases the country’s debt burden, and lead Estonia to the elections without new scandals. Perling also stated that parliamentary parties are postponing necessary reforms and avoiding responsibility for the state of public finances.
Criticism of budget policy
Perling noted that Estonia’s economy grew by 1.8% in the previous quarter, but called such growth unsustainable. According to her, it is largely based on major public investment, while the share of private investment in GDP remains low.
The author referred to the Ministry of Finance’s economic forecast, according to which public investment has reached a historically high level, while growth in business investment is not forecast. She believes that uncertainty in economic and tax policy is holding entrepreneurs back from investing in the country.
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Perling also stated that the Reform Party government recently transferred €70 million in defense funds to an Indian company which she described as having questionable origins. In her view, this called into question the proper use of defense funds and Estonia’s international defense reputation.
Reform proposals
According to the author’s assessment, Estonia’s debt-servicing costs could reach €320 million, or 0.7% of GDP, by 2027. She proposes freezing public expenditure at the 2026 level and then considering tax cuts to stimulate the economy.
Perling called for reforms to begin in the education, social protection and healthcare systems, for greater involvement of the private sector in medical services, and for reducing the bureaucratic burden. She called the idea of early elections promoted by Isamaa leader Urmas Reinsalu unrealistic, and described the positions of Reinsalu and Centre Party chairman Mihhail Kõlvart as populist.
