"This audit is unprecedented in Estonian politics, but it sums up the key conclusion: the Reform Party has failed in Estonia's finance and economic policy," said Isamaa chair and MP Urmas Reinsalu.

The opposition party's audit singles out three main issues with the Reform Party-led government between 2023 and 2026: raising taxes during a period of economic stagnation; expanding national debt; and the lack of concrete solutions in energy policy.

Instead of targeted cost-saving measures, Isamaa says the government opted for broad tax hikes, which fueled inflation, reduced purchasing power and weakened businesses' competitiveness.

Asked by ERR where funds could come from to cut debt and reduce taxes, Reinsalu pointed to reducing administrative spending.

"Let's implement [Prime Minister Kristen] Michal's government plan," he said. "He promised a ten percent cut, but that hasn't happened."

Possible private interests in new council

Isamaa also criticizes the government for not including business voices in decision-making.

Tallinn Mayor Peeter Raudsepp called the government-convened Economic Growth Council a good idea but said implementation of its recommendations have moved too slowly.

The mayor also warned that some entrepreneurs also appear to be pursuing private interests under the guise of the council's work.

"If work is being done in the name of reducing bureaucracy, that's good," Raudsepp said. "But if it's advancing personal or sectoral interests at the expense of broader societal agreements, that's reprehensible. And at times that seems to be the case."

The audit warns that eliminating budget rules could push Estonia into a dangerous cycle of spiraling debt growing faster than the economy can sustain.

Isamaa said this makes new tax hikes all but inevitable, adding that policies that shift costs to the future undermine trust and hold back the economy.

Reform's new vision incoming

The party also criticized the government's energy policy as amounting to little more than rhetoric, with no clear vision to ensure affordable electricity, secure supply or competitiveness for energy-intensive businesses.

Without a functioning energy policy, Isamaa warned, there won't be any economic growth.

From July 2022 to April 2023, Isamaa was part of the ruling coalition with Reform and the Social Democrats (SDE) under Kaja Kallas' second cabinet. Since its dissolution following the 2023 Riigikogu elections, the party has been in opposition.

This Saturday, the Reform Party plans to unveil its new "Blue, Black and White Vision" for Estonia's future.

The senior coalition party says the initiative is intended to boost national wealth, strengthen security and position Estonia at the forefront of Europe by utilizing emerging technologies, including artificial intelligence (AI).

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