Eesti 200 refuses to back down on means-tested benefits, coalition tensions rise
A dispute has erupted in Estonia's coalition government over family benefits reform, with Eesti 200 insisting on means-testing to save €100 million annually, while the Reform Party appears to waver.
Estonia's ruling coalition is facing internal conflict as Eesti 200 leader Kristina Kallas stated that her party does not agree with the Reform Party backing away from the goal of making family benefits means-tested, a measure expected to save €100 million per year.
Social Affairs Minister Karmen Joller (Reform Party) previously indicated that the savings from means-testing, planned for 2028, would not materialize. Finance Minister Jürgen Ligi (Reform) also said universal family benefits would not be reduced. Kallas told ERR that the issue had not been discussed within the coalition and that she could not explain Joller's remarks.
"We have absolutely no intention of removing this €100 million cut in benefit spending for 2028 from the State Budget Strategy. We do not agree with that because the agreement exists. It reduces our deficit. If we put that €100 million back in, our budget deficit will exceed 4.5 percent," Kallas said. She added that the savings could actually be greater than €100 million.
Kallas emphasized that Eesti 200 stands for a personalized state where benefits are targeted to those who genuinely need support. She rejected Joller's explanation that database limitations prevent means-testing, calling it "especially embarrassing" for a digital state like Estonia that possesses more data than most countries. "That excuse does not stand up to scrutiny," Kallas said.
According to Kallas, upcoming budget discussions with the Reform Party will be heated. "This is a disagreement that must be resolved. But one coalition partner has simply backed away from a plan that is critically important from the perspective of the state budget. For me, this adds up to a larger question... Is the Reform Party prepared to manage the country sustainably?" she asked.
The coalition agreement between the Reform Party and Eesti 200 includes a pledge to develop principles for personalized and means-tested benefits by the first quarter of 2027.
