Coalition still disagrees on cuts

Reform, Eesti 200, and SDE discussed €175 million savings on Monday but failed to reach an agreement. Cuts to the Ministry of the Interior were not mentioned.
On Monday afternoon, parties tried to decide on whether to cut one-off expenses or current spending, which would also lead to a reduction in future expenses, said Minister of Education Kristina Kallas (Eesti 200).
She said it was agreed that fixed costs would total €70 million of the reductions, €30 million would come from one-time expenses or postponing investments, and and income measures by €50 million, i.e. mainly dividends of state-owned companies.
Kallas said the government did not discuss other topics specifically.
Minister of the Interior and leader of the Social Democrats Lauri Läänemets said some decisions were made and some things have become clearer. For example, pensions will not be touched.
"Internal security, some other issues, still need to be further discussed," Läänemets said.
He said it is planned to continue negotiations again as soon as possible, but it is hard to predict when the government will reach an agreement.
Minister of Finance Mart Võrklaev (Reform) said progress is made every time the parties meet. "We are moving closer to making an additional budget with small steps," the minister said.
The coalition wants to make €175 million worth of cuts to stop the deficit from rising above 3 percent of GDP, which would break the EU's budget rules.
According to the plan, part of this would come from cuts to the state and part from extraordinary dividends of state-owned companies.
The coalition wants the bill to be adopted as soon as possible, and before the summer break starts in June.
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Editor: Huko Aaspollu, Helen Wright










