Estonia: Incoming coalition plans budget cuts across all ministries

Estonia’s incoming ruling coalition has agreed to implement budget cuts across all ministries, including defence and interior affairs, ERR reports. Margus Tsahkna, chairman of Estonia 200, said that each ministry would likely face a percentage-based cut to salaries and management costs, and that no new jobs would be created. The coalition plans to extend the cuts over several years, with further reviews on pay and pension indexation. Lauri Läänemets, chairman of the Social Democratic Party (SDE), opposed freezing pensions, however. The Estonian Reform Party’s prime ministerial candidate, Kristen Michal, emphasised that while the capabilities of the Estonian Defence Forces and police would not be reduced, administrative costs and various activities would be reviewed. The coalition also discussed a new national defence tax.