"Teachers, rescuers and police officers are the ones with the best chance of a raise," Prime Minister Kristen Michal (Reform) told ETV's "Esimene stuudio." "But the numbers depend on how we manage to cut the budget, not on how many pickets we hold."

He stressed that the government cannot promise increases for everyone while defense spending is rising and the income tax exemption is set to grow. "Already from January 2026 incomes will increase, and if possible, we will add a raise on top of that," he said.

Michal, whose approval rating stands around 5 percent, said the low figure motivates him: "It pushes me to do my job better, to communicate more, to explain more."

The prime minister distanced himself from the unpopular car tax but also recent calls to repeal it. "I'm not a fan. The rate was set too high," he said, adding that he nevertheless prefers avoiding an income tax hike: "What better way to cope with rising prices than to have that money in your account?"

On inflation, Michal said food price growth of nearly 10 percent is straining families, but over the longer term pensions and wages have risen faster. "I'm not downplaying inflation. Inflation is a problem everywhere, and with rapid wage growth it certainly carries over into prices," he noted.

He rejected calls to cut VAT on food, despite a petition with almost 100,000 signatures. "Any tax exemption will never fully reach its target. Better to leave that money in people's accounts and let them decide," Michal said.

Asked whether Reform could be punished in the next elections for its tax policies, Michal replied: "Quite possible. But if someone elects a poor mayor just to punish Reform, they'll be the ones living with that punishment for the next four years, not us."

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