Estonian PM Michal: Reform Party aims for 20 seats in the Riigikogu election

Estonian Prime Minister Michal, a member of the Reform Party, outlined the party's goals on a broadcast ahead of the spring Riigikogu (Estonian parliament) election. The party's council of delegates set a target of 20 seats last weekend. Host Arp Müller remarked that an election cannot be won with 20 mandates.

Michal replied that parliament needs a strong team, and that such a base lets the party work, be an influential player in Estonian politics and defend what it believes in. He described the Reform Party as a strong liberal party that defends citizens' rights and freedoms, including economic freedom.

Income tax

According to the prime minister, the tax burden was 36.2% last year and will be 35.2% next year. He said a further income tax cut is possible in the next term if funding sources are found: defence spending kept at five percent, the budget deficit limited by half a percent a year, and state services reviewed or new technologies used. He gave no specific figures and asked for patience until the election programmes are presented.

Fuel excise

Michal said the decision on raising fuel excise in May next year will depend on the situation. The government is monitoring the fuel market, including meetings with the Bank of Estonia, the State Reserve Centre and market participants Neste and Alexela. He stressed that reserves are sufficient, and said fuel price rises were caused by events in the Strait of Hormuz. Estonia is also watching for a possible leakage of tax revenue to Latvia.

Rail Baltica

Estonia's co-financing share in the Rail Baltica project could rise to 25%, with the EU covering 75%. The original plan was 85 to 15, and it is currently roughly 80 to 20. Michal believes that shifting the construction timeline will make the project cheaper.

Passport colour

On the Interior Ministry's idea of returning to blue passports, Michal said the passport's functionality and fast electronic checks matter more than its colour.