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There is no point in denying that there are doubts within the government about whether Prime Minister Kaja Kallas will take up the high post of the European Commission after the European elections, Foreign Minister Margus Tsakna (Estonia 200) said in an interview with “Aktuaalsele kaamera”.
Given how hard this €100 million cut was, what hope is there of saving in next year’s budget?
I regret that we could not agree in the alliance on the percentage of surplus cuts, which would have been done next year anyway, because we are just wasting time. Around five percent of surplus field cuts must be done. 2025 is a very difficult year and we also know that the security situation is not going to get better. So this really makes my hair stand on end.
But the important thing is that we still decided to add 175 million euros to the budget and we still managed to keep our ambition within the focus of the cuts, which was to cut more than 100 million euros.
The government is not planning any new tax increases and apparently no major cuts. Do you think the budget deficit will be less than three percent of GDP next year?
As of today, it is still over five percent, so I am not very optimistic. Cuts are coming, and they are arguably excessive, with the exception of defense investment. My experience is that we need to agree on our target percentages. In addition, we also have to deal with the economic stimulus measures that have been enacted, which require investment. So from the perspective of both parties, there is nothing easy waiting for us this fall.
Should we give up on eliminating the tax hump?
I think that everything is on the table until there is a political agreement. If this coalition does not have the will to make such deep cuts, then we have to see if we can enforce tax increases. Everything is on the table. After all, we did not agree on something for next year.
Would the government be more efficient if those Social Democrats who advocate tax increases rather than tax cuts were kicked out?
I hope that this government is capable of action. Today we showed it. While the other day we were in a situation where there was no agreement, and I thought maybe it would not happen, in fact we were able to agree. But this is the clash of worldviews in this coalition – Estonia 200 does not support tax increases. For example, we are willing to discuss a broad-based security tax, but only until 2025. But simply put, we are taking more money, but we cannot wipe the lard out of our country, we do not agree to this.
Is the current government’s apathy related to the fact that Kaja Kallas is still expected to become a European Commissioner?
I’m not going to tell you any bullshit either – the question is still up in the air. This is not just a politician, this is the Prime Minister of Estonia. If he gets some kind of high position, obviously this government will collapse, or this government will no longer exist, and it will put a certain stamp on it.
I hope that in the near future this question will become clear, where will Kaya Kallas go or will she stay here. Today the government is working, all ministers are working, but there is still a question mark. There is no point in hiding it.
Is it a better choice for Estonia 200 if Kaja Kallas leaves the European Commission or stays here?
I just want this coalition to work so that there’s no expectation that we hide behind anybody or anything so that we don’t know who we’re negotiating with, for example, in the fall budget negotiations. Just clarity is the most important thing for this coalition.
Of course, in terms of international politics, Kaja Kallas will be a very strong representative of Estonia at the European level, but I hope that the Estonian government will do its work and cover up this cooperation without hesitation and doubt.
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