SDE leader: Cooperation with Reform Party under Michal would be difficult

Lauri Läänemets told Vikerraadio Tuesday that during their time in government, attempts were made to pressure SDE into supporting draft legislation favorable to major business interests. According to Läänemets, these initiatives were later backed by Eesti 200 and the Reform Party after Kristen Michal became its leader.
"They didn't speak to me directly — I can only relay what I know — but it really did happen: such a meeting took place, those messages were conveyed and there was even a document outlining their demands," said Läänemets in response to a question about whether attempts had been made to pressure the Social Democrats over draft legislation related to the Competition Act and the centralized procurement of medicines for hospital pharmacies. In exchange for their support, it was suggested that Postimees would refrain from publishing negative coverage about SDE. Postimees is majority-owned by Margus Linnamäe, who dominates Estonia's pharmaceutical market and holds strong positions in several other economic sectors — making stricter competition legislation a clear threat to his business interests.
"I have to say that my adviser and I did discuss it, and this wasn't the only attempt to reach the Social Democrats — other entrepreneurs were also sent to talk to our politicians," Läänemets added.
Eesti Ekspress reported on Monday that Vootele Päi, Läänemets's adviser, had spoken with Mihkel Nukka, a lawyer linked to Linnamäe, who allegedly proposed that Postimees would stop criticizing the Social Democrats if they helped push through "a couple of laws."
Commenting on the document they received outlining proposed legislative amendments, Läänemets said, "The document wasn't a surprise in that sense — I had already seen something like it, or similar proposals, making their way to the government table via Eesti 200."
While Kaja Kallas was prime minister, such proposals found no support in the government, Läänemets noted. Kallas, a competition law expert familiar with the EU directive in question, had taken a firm stance. But the situation changed after Kristen Michal became prime minister.
"The main question in this whole matter is: why did the Reform Party change its position when the prime minister changed? Initially, they supported one version of the Competition Act, but then they switched to the version that had earlier been pushed toward the interior minister and the Social Democrats," he said.
Asked how and why the Reform Party's stance had shifted, Läänemets declined to speculate, saying he had no precise data but the change was clearly noticeable.
"I don't have the exact details on why it changed, but I do know that lobbying targeted all political parties. Every listener can draw their own conclusions from that. /.../ What I can say is that not only did the prime minister's opinion change — so did the opinion of the Government Office, where lawyers conduct the final legal review before legislation goes through the cabinet. And on top of that, the stance of Reform Party members on the Riigikogu Economic Affairs Committee also shifted," Läänemets explained. "So yes, it is possible to influence parties and their members. I just suspect that an ordinary citizen wouldn't be able to do it so easily. If you have a lot of influence and money, you're much more likely to be heard by certain parties," he added.
On Tuesday, the Riigikogu passed the new Competition Act. Under the legislation, competition violations will now be punished through misdemeanor proceedings, even though the original draft — agreed upon early last year by the coalition of the Reform Party under Kaja Kallas, Eesti 200 and the Social Democrats — had called for handling such cases through administrative proceedings and prescribed hefty fines for violations.
In addition to the Competition Act, Läänemets believes the lobbying efforts also targeted a bill concerning centralized purchasing of medicines for hospital pharmacies.
"There's currently a bill in the Riigikogu that concerns hospital pharmacies. It's essentially a cost-saving proposal introduced by Minister Riina Sikkut (of SDE). The idea was that Estonian hospitals would no longer purchase medicines through wholesalers or middlemen but would buy directly from manufacturers — saving the state around €15 million. Well, anyone can draw their own conclusions — it stalled in a Riigikogu committee," Läänemets said. "I believe there were Reform Party members who said at the time that consultations with the European Union were needed and set various deadlines, all of which have now passed. But the bill still isn't moving. We'll see in the fall — if the bill remains stalled, I would dare to say there's more at play than just the interests of the Republic of Estonia."
As a third example of potential lobbying, Läänemets cited a proposal from business interests to designate 30 percent of Estonia's forests for conservation, while allowing commercial use in the remaining 70 percent.
"We're seeing the same thing with forest policy, where 70 percent of our forests are being eyed for commercial use — essentially turning them into tree farms in the future. This isn't even in the interest of most timber companies. I would argue it serves the interests of a very narrow circle of large entrepreneurs. And that's not the same as the public interest. If community forests are being clear-cut and protected areas are being scaled back — where exactly is the public interest in that? Maybe in the prime minister's enthusiasm for hearing out big business, those narrow commercial interests have been mistaken for the public good," said the SDE chair.
Working with Michal would be difficult
Läänemets also acknowledged that, given the current situation — where the Reform Party is sending mixed signals in Tallinn about a possible collaboration with the Center Party — it would be difficult to work with Michal in the future.
"I can't imagine the Social Democrats entering a coalition with the Reform Party while Kristen Michal is prime minister. Somehow, Kristen Michal has reached a point where Isamaa has ruled him out, and to the Social Democrats, he also seems like an untrustworthy partner. In addition to his focus on narrow business interests, he tends to swap political partners like socks. We're seeing this play out in Tallinn with his flirtation with the Center Party," he said.
"For years now, they've been telling voters — during election campaigns even — that the Center Party is too pro-Russian and that they wouldn't work with them. And now, when they finally have their so-called dream coalition governing Tallinn, they're trying to blow it up. I wouldn't rule it out — we can see how much flirting and cooperation is happening with the Center Party, how they're walking in step," he continued.
"And none of this is really in the public interest — it's just that Kristen Michal's own approval rating is very low, and so is his party's, and this is all part of an effort to save the party," the SDE chair argued.
Commenting on the dispute that flared up in Tallinn after the Reform Party demanded the elimination of kindergarten fees, Läänemets said the Social Democrats support the idea in principle — but only if it comes with a stable funding plan.
"Right now, the proposal is to cover it with this year's supplementary budget and one-off spending, but that same money will be needed again next year! You can't make decisions like this in a city — or in a country, for that matter — without thinking them through. /.../ I was watching 'Aktuaalne kaamera' on Sunday night, and the Reform Party's tone just keeps shifting more toward: 'everything's bad now, we can't remain in this coalition.' Then they should just come out and say so. I think that would be the honest thing to do in politics — if they need to work with the Center Party in order to keep Kristen Michal in the prime minister's seat until the next election, then say it. We can understand that — this is politics. That's the Reform Party's interest, and it may not align with the interests of the Social Democrats or even half the people living in Tallinn, but at least we'd know — and we'd respect that. But this kind of double-talk, where they're actively obstructing the work of the city government — that's not in anyone's interest, and it won't lead to any real solutions," Läänemets said.
Comment from ISS
In response to ERR's request for comment on Läänemets's claim that his adviser, Päi, contacted law enforcement after receiving a proposal from Nukka, Internal Security Service (ISS) spokesperson Marta Tuul said: "All we can say in situations like this is that it is important to us that people who reach out to the ISS can be completely confident that their communication and the information they provide will be used solely for the purpose of ensuring security."
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Editor: Marcus Turovski, Mait Ots