Estonian opposition party calls for PM Michal's replacement before elections
Estonian party "Parempoolsed" leader Lavly Perling accuses ruling parties of living in illusions about the state budget and urges replacing Prime Minister Kristen Michal with an interim leader ahead of elections. She also dismisses calls for snap elections as populism.
The leader of Estonia's opposition party "Parempoolsed" (Right-wing), Lavly Perling, has published a sharp critique accusing the country's parliamentary parties of living in illusions about the true state of the economy and public finances.
According to Perling, the ruling Reform Party hopes the economic situation will simply improve on its own, while coalition partners Isamaa and the Centre Party are trying to dodge responsibility. She notes that national debt grows by nearly 100 million euros every month, a problem made worse by the government's recent transfer of 70 million euros in defense funding to an Indian company with a questionable reputation, which she says damaged the international credibility of Estonia's security sector.
Call to replace the prime minister
Because of this, the board of "Parempoolsed" has proposed that the Reform Party's leadership recall Prime Minister Kristen Michal and appoint an interim prime minister instead. This person's task would be to halt work on a budget that Perling says is leading the country toward bankruptcy, and to run the country without further scandal until the next elections.
Growth called fragile
Perling acknowledges the economy grew 1.8% last quarter, but argues this growth rests mainly on record-high public sector investment, while private sector investment as a share of GDP is at its lowest since the crisis of the late 2000s. She warns that state spending keeps rising, interest payments could reach 320 million euros by 2027, and businesses remain reluctant to invest because they expect future tax hikes to erase any gains.
Criticism of opposition leaders too
Perling also criticizes Urmas Reinsalu, leader of the largest opposition party, for proposing snap elections instead of focusing on the budget, calling the idea populist and beneficial mainly to the Reform Party. She calls for freezing state spending at 2026 levels, letting the state operate without a new budget until March under constitutional provisions, then adopting a budget aimed at balance, alongside reforms in education, social affairs and healthcare.
