Center's Riigikogu group chair Lauri Laats said Ligi's actions are causing significant harm to the state budget as well as to the well-being of citizens and businesses, adding the finance minister's statements have been disrespectful towards both the public and MPs.

The welfare of citizens and businesses alike has been undermined, leading to increased poverty and a growing number of bankruptcies, Laats said, adding this has all been happening amid rising fuel prices caused by the conflict in the Middle East.

Laats also stressed what he called Ligi's persistent disregard for the issue of rising food prices, which has led to Estonia topping the EU table on the rate of inflation when it comes to food prices. Estonia is also one of only two EU member states which do not apply a reduced VAT rate to food products.

"Food prices in Estonia have risen by 60 percent in recent years. Food has become a luxury item, retail chains are reporting declining sales volumes, and shoplifting is steadily increasing. Yet neither these facts nor the experience of other countries have convinced Jürgen Ligi that slashing VAT on food is absolutely required," Laats said.

Laats added Ligi's remarks on the issue demonstrate not only unprofessionalism but also a complete lack of understanding of the real problems facing people and businesses.

"Many of Jürgen Ligi's comments inevitably raise questions about how adequately the minister assesses the situation. For example, his advice not to look towards petrol stations and simply cope with prices on one's own, as well as his claim that lowering food prices would be a foolish decision, are, to put it mildly, astonishing," Laats said.

"Taking all of this into account, our belief is that Jürgen Ligi is incapable of managing the country's finances. His actions are harming the state budget, and his statements have diminished the already poor standard of political culture and have discredited the executive branch. Consequently, our hope is that other Riigikogu groups will join our initiative to express no confidence in Jürgen Ligi," Laats went on.

Laats said the Reform-Eesti 200 government is propping up day-to-day expenses through borrowing, causing public debt to grow, which in the long term will increase the state budget's fixed expenditures. This also demonstrates Ligi's "incompetence," Laats went on, adding he is "unwilling even to discuss real options for ensuring a sustainable state budget." These options would include a tax on bank profits and a progressive income tax, according to the MP.

Laats listed several EU member states, Latvia, Lithuania and Poland among them, which have adopted various measures to reduce the impact of rising motor fuel prices, measures which Ligi seems unwilling even to discuss, the MP added.

Laats said Center has decided to start talks with other Riigikogu parties on submitting a motion of no-confidence in Ligi as finance minister.

There has been speculation in the Estonian media in recent weeks about a possible government reshuffle and, in particular, the replacement of Ligi. Prime Minister Kristen Michal (Reform) has so far rejected these claims and stated that no government reshuffle is being planned.

According to Eurostat, Estonia overall has the ninth-most expensive food prices in the EU. Estonia's VAT rate, hiked by 2 percentage points last summer, stands at 24 percent, with no discount on food items. Latvia has applied a reduced rate (to 12 percent) of VAT on staple food items such as bread, milk and eggs, while Finland also operates a reduced rate.

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