Estonia: Finance Minister vows to defend budget discipline

Estonia’s Finance Minister, Jürgen Ligi, vowed to defend budget discipline and push back against populist spending proposals ahead of the parliamentary elections in March 2027, ERR reported. Ligi said that the country’s political culture had deteriorated badly, and acknowledged that populism had crept into his own Estonian Reform Party as well. He insisted on the need for political stability. Governments should stay in office the whole parliamentary term and “carry their own cross,” he argued. Earlier, Ligi said that he did not trust that political parties would be able to stick to any agreement to reduce the fiscal deficit and public sector debt as proposed by Madis Müller, governor of the Bank of Estonia, ERR reported. Meanwhile, Reform leader, Prime Minister Kristen Michal, suggested that, instead of cross-party declarations, the parliament approve a law to mandate reducing the deficit by 0.5 percentage points per year, ERR reported.