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Let’s assume there is another government in power in Estonia, pursuing different policies. Do you think there will be one? economic recession Not there, the same, or greater? This question comes down to how much personal responsibility you and Kristen Michal take.
Yes, there is no shirking of responsibility. I think it is not just a matter of these two ministries. Efforts must be united, and you can always do better. This is a difficult question to answer BroadCast Unitedligently. I expect that we will experience these disasters in some form. But if we predict the policies of one government or another now, this decline may be faster or even slower.
But what is my message when I develop the economic plan – this is a matter of common concern to us. I think that so far for us, it is not particularly about the current alliance, but Estonian entrepreneurs and politicians, if we have a clear consensus in the defense industry and defense sector, then the issue is the competitiveness of the Estonian economy, then people will not look at it with the same seriousness.
Of course there are some places where there is a reaction, but I think we are still not paying enough attention. Most of the important decisions we make today should have economic competitiveness as a core issue. And there is no other way to do this except to work day in and day out. So far, we have been helped by the activities of Estonian entrepreneurs, the excellence and working skills of the Estonian people, but the world is changing and we must take a more active stance together.
Estonia has a big problem with competitiveness, our wages are rising too fast, and our inflation rate is very high compared to other EU member states, so we have big concerns. Are you the Minister of Economy and Informatization? Do you feel the government is a united team?
The honest answer is yes and no. I don’t want to shirk my responsibility here, but economic policy is so comprehensive that it basically covers all ministries. From the Ministry of Education to the Ministry of Defense.
Yes, our individual joint projects are going well. For example, we have ambitions for renewable energy, which is essential for modern manufacturing companies. But on the other hand, I must admit that when I read this article The Prime Minister saidthe economic plan we have is not a government plan, so it makes some requirements.
What we can learn from other countries is to forget about party or anything else in such a difficult situation. And work together. Again, to bring up the defense parallel, if you want to dominate the battlefield, you must work together. What a united effort. I think this unity can indeed be greater.
How should this be done? After all, the Prime Minister is the head of the entire government. Should he handle this issue more personally?
Yes, that’s what I’m asking for. We also have very good cooperation with the Prime Minister. I’ll give you an example of the same defense industry. Indeed, it can become one of the important economic engines of Estonia in the future. We have people and entrepreneurs who want to do it in the field of technology. But there are certain shortcomings in the availability of capital – so far, many banks and funds do not finance companies dealing with lethal technologies. We quickly put our heads together and created a separate fund under Baltcap. By July 4, the conditions will be met and in the autumn I want to make the first direct investment. The Prime Minister is also very supportive.
But that alone won’t save us. We can actually move faster together on a lot of things if we pay more attention to those activities. Across the government.
What else could be moved forward faster if the government was united?
I got two things from the examples on the table, so to speak. One is concrete major investment measures. We have prepared a fully feasible scenario to implement quickly. Yes, of course there are costs, but these costs will eventually pay off with the productivity of the investment. And contribute to the Estonian economy in other ways, so to speak – realize these investments, build factories, etc. One would like to be able to make these decisions faster.
Another example is that our labor market has held up well in this crisis. Estonians have also found jobs. Rather, the problem lies with modern companies that do not have enough skilled labor. There is not enough across the EU. We have also proposed how to increase the variable part of the labor quota, which is currently low, especially for professionals who work in the business sector and whose wages are not below the average wage. It will go to manufacturing companies.
We are not going to open our borders for you to come and pick our strawberries. Entrepreneurs also say that there is a lack of qualified labour only in very specific areas, according to the OSKA report.
It has been preparing for a long time, negotiating with the Ministry of the Interior, coordinating with employers, and coordinating with unions, but it just won’t move. Since the wages of these people cannot be lower than the average wage, a simple calculation means that this is an additional tax of 15 million per year.
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