Estonian PM: 20 Seats in Parliament Enough for Reform Party to Stay a Force
Estonian Prime Minister and Reform Party leader Michal said on a TV show that the party aims to win 20 seats in next spring's Riigikogu elections. He also discussed income tax cuts, fuel excise duty and the Rail Baltica project.
Estonian Prime Minister Michal, who leads the liberal Reform Party, explained the party's target for next spring's Riigikogu elections, the vote for Estonia's parliament, during a show appearance. At a party council meeting over the weekend, the Reform Party set a goal of winning 20 seats. Host Arp Müller pointed out that this number would not be enough to win an election.
Michal replied that what matters is getting a strong team into parliament, one that lets the party remain a force in Estonian politics and defend its beliefs. He stressed that the Reform Party is clearly liberal and stands for individual and economic freedoms.
Taxes and fuel
According to the prime minister, the tax burden was 36.2 percent last year and will be 35.2 percent next year. He said further income tax cuts are possible in the next term, provided defense spending stays at 5 percent and the budget deficit keeps shrinking by half a percentage point a year. Money could also be found by reviewing public services or using new technologies. He would not say how large a cut might be.
On a possible fuel excise duty increase next May, Michal said no decision would come before next year because fuel prices are too uncertain. The government is monitoring the market together with the Bank of Estonia, the Estonian Stockpiling Agency and the Ministry of Finance. He recalled that an excise increase was already cancelled this year and the same could be done next year. The government is also watching Latvia's steps, as pump prices in the two countries are similar.
Rail Baltica and passports
Michal believes that delaying the construction deadline for Rail Baltica, the Baltic rail link project, would make it cheaper for Estonia. Estonia's share could rise to 25 percent if the European Commission cuts EU co-financing to 75 percent. The current split is closer to 80-20.
On the Interior Ministry's plan to return to blue passports, the prime minister said fast electronic passage through checkpoints matters more than color.
