The Economic Growth Council, convened by the Government Office, has been gathering proposals on how to reduce bureaucracy. At the group's most recent meeting, the issue of planning was put under the spotlight.

Arakas said one problem entrepreneurs highlighted was lengthy planning procedures.

"For example, if the city of Tallinn could manage its planning processes like Riga does today, the price of our new apartments would be at least €500 to €1,000 cheaper," he pointed out.

The CEO explained that long-running processes push costs as fewer properties are on the market. Ultimately, it is the homebuyer who pays the price.

At the council, business representatives said that one issue is the demand for detailed plans even in cases where it is not substantively justified.

According to proposals from entrepreneurs, a system should be created that allows major developments to be processed more quickly and simply, with binding deadlines imposed for planning and permit procedures, and the role of detailed plans reduced.

This would mean establishing more flexible conditions where, if a comprehensive plan is already in place, a detailed plan would not always be mandatory, they added.

The council also discussed reducing bureaucracy in the tourism sector.

So far, the government has supported 49 of the 533 proposals received from the council, and new suggestions are continually being added.

The council, which first convened this March, will meet until September of next year.

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