Center Party urges fuel VAT cut, votes to join European Conservatives

At its council meeting Saturday, Estonia's Center Party called for a fuel VAT cut and said it will begin talks to join the European Conservatives and Reformists (ECR).
Party chair Mihhail Kõlvart said Estonia's economy has endured three years of decline and repeated tax hikes, leaving people and businesses stretched to the limit. He said immediate government action is needed to curb rising fuel costs.
Alongside the recently announced plan to cancel the fuel excise hike scheduled for May, Kõlvart also called for a temporary fuel VAT cut.
"Undoing only state-driven price increases isn't enough; we also need to ease both the price hikes we've already seen and those expected in the near future," he said.
Fuel prices, he added, affect the entire economy, from logistics to industry, food production and agriculture.
"Estonian food production and retail are still in decline, and agriculture has endured multiple crises," Kõlvart emphasized. Absolute poverty is also rising, and at today's prices, food is already out of reach for many, as reflected in the rise in shoplifting.
The Center Party leader criticized the Reform Party-led coalition for rejecting a petition to lower food VAT that drew 100,000 signatures. He warned that rising fuel costs could push food prices even higher, further worsening both household budgets and the national economy.
Next week's nationwide farmers' protest underscores the crisis, he said, noting that farmers have faced floods, African swine fever (ASF) and government inaction. Farmers deserve recognition for their vital role in ensuring the country's food security.
"It's the duty of the state to prevent the next fuel price-driven crisis from hitting our agriculture and food security," Kõlvart said.

In a well-managed economy, he added, support measures wouldn't be needed for each successive price shock, "but with the past three years of tax hikes and sharply higher electricity prices, people and businesses in Estonia have reached their limits."
Center courting European Conservatives and Reformists
The Center Party council also voted Saturday to apply for membership in the center-right European Conservatives and Reformists (ECR).
Council chair Erki Savisaar said the party left the Alliance of Liberals and Democrats for Europe (ALDE) in fall 2024 due to increased domestic political pressure.
Over the past 18 months, the party assessed which European party best aligns with its values. "We have to admit that no purely centrist party exists in Europe, so this choice is largely pragmatic in nature," Savisaar said.
He emphasized their alignment on key issues: the EU as a robust economic and security union, national sovereignty, rule of law and low taxes.
The council chief said ECR also supports reducing overregulation while protecting workers' and union rights, and opposes what he called an "ideological green transition," which he says has weakened Europe's economy and energy security as well as driven up prices on essential goods and services.
ECR has the fourth-largest group in the European Parliament, including Estonian Center MEP Jaak Madison. Fellow Center MEP Jana Toom remains with ALDE Group successor Renew Europe, however, where she has served since 2014.
The next Riigikogu elections will be held in March 2027.
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Editor: Aleksander Krjukov, Aili Vahtla


































