The Center–Isamaa ruling coalition has agreed to reduce investments in this year's city budget and the total investment volume is approximately 20 percent smaller than in 2025.

Among the major cuts is the design of the Tallinn hospital, for which nearly €30 million had been allocated over four years in the city's budget strategy.

Mayor Peeter Raudsepp (Isamaa) told ERR that since the construction of the new hospital complex is still uncertain, there is no need to design it at this point.

"We've taken a very honest view of this. There has never actually been any certainty about the financing of this hospital's construction. There has never been a guarantee that such a billion-euro investment would actually happen. And in a situation where the city has taken on a roughly €30 million obligation, we've foreseen that this needs to be reversed. Wasting that money would not bring us any closer to the Tallinn hospital," said Raudsepp.

Deputy Mayor for Social Affairs and Healthcare Riina Solman (Isamaa) issued an order last week to conduct a legal analysis on whether the design of the new Tallinn hospital can be paused until funding can be requested from the European Union.

She said it is very difficult to plan the construction of the hospital as the state has not agreed to provide any guarantees for funding the major hospital project.

Solman added that there is no doubt Estonia needs a new hospital, but the city of Tallinn cannot build it on its own.

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