Estonia's Finance Minister pushes back against populist spending proposals

Finance Minister Jürgen Ligi said his main challenge at the moment is drafting the next state budget, as many politicians are looking to use taxpayer money to offer pre-election giveaways to voters. Estonian parliamentary elections will take place in March 2027.
Ligi said he is prepared to clash head-on with those making such proposals and acknowledged that populist tendencies have also crept into his own Reform Party.
"Political culture has, in my view, deteriorated badly, and in my own party there is, of course, a desire to compete in these things as well. But the scale differs — some are adding two extra zeros to what they want to do much faster than is actually planned," the minister said.
"We are certainly not the worst offenders, but even within my own parliamentary group I sometimes have to explain, when morale drops, that we need to stay calm — this is our mission, we have to travel the whole distance," Ligi added.
Rules on fiscal responsibility
Ligi also described a recent internal party conflict in which he had to fight to maintain budget balance.
"Just yesterday I hung up on a call where someone wanted to push for spending an extra million euros immediately. These are small sums, because others are doing similar things in the hundreds of millions. But the issue is the principle: we stay our course and we have rules on fiscal responsibility. That's what I had to explain to them. In the end I became quite angry, because they wouldn't listen," Ligi said.
Asked whether replacing Reform Party leader and Prime Minister Kristen Michal — whose party is polling around 10 percent — would be madness under current circumstances, Ligi said he would not say that, even if he thought it, because doing so would undermine internal stability in the party.
"My instinct has always been for political stability. I think governments should last four years and carry their own cross. Some may find that questionable, but I've always been worried about the changes that come with government turnover — because then it turns into serious horse-trading and infighting, and taxpayers always end up paying much more," Ligi said.
Despite tensions within the coalition and disagreements with party colleagues, Ligi remains firm in his position as finance minister, does not plan to resign, and will most likely run again in the elections next year.

Responding to suggestions that his position might be shaky due to clashes both within his party and with the Eesti 200 party, Ligi rejected the idea.
"The finance minister is not actually at odds with anyone. There are exceptions, for example betrayals that I cannot forgive within the coalition. But no, I'm not in conflict. We get along very well — it's just that heated exchanges arise when the other side is careless. I push back... If the other side is careless with words, I don't initiate it, but sometimes I have to defend the Estonian state," Ligi said.
"I've actually become better and wiser"
Ligi also disagreed with a journalist's claim that he is the government's problem child.
"I don't think I'm a problem child. Anyone can judge whether I've declined over time, but I feel I've actually become better and wiser all the time. A problem child, sure — if I were a gray mouse, followed orders, and yielded to backroom pressure, I'd be more comfortable. But I serve the Estonian state, and if it's decided that quiet conformists should be put into office, that time will come too. Just bear with me — there isn't much time left anyway," Ligi said.
Although Ligi acknowledged that the current public resentment affects him personally, he still intends to participate in the 2027 spring elections in support of his team.
"It's not entirely certain — I'll see where the party is headed. My mood isn't the most optimistic, but it depends on this: if the party sticks to its line and doesn't turn populist, then I will run. But I don't expect to bring in many votes this time. It's clear that the team's unpopularity reflects on me, perhaps more than it should, even though I held the same positions during times of popularity, so I don't consider myself the cause," Ligi explained.
"I will probably run, but I'm not saying it with great passion. I'm going because I have to support my team and defend the things that have been done well in Estonia. Personally, I don't really need it, but at the same time I can't say my energy or knowledge has declined — if anything, my knowledge has definitely improved," Ligi added.
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Editor: Mari Peegel, Argo Ideon
Source: ERR interview by Indrek Kiisler












