The National Audit Office of Estonia (Riigikontroll) found significant errors in the 2023 state budget act despite the overall accuracy of the state’s financial accounts, ERR reports. Key issues included incorrect recording of transactions in the budgets of the ministries of economy, regional affairs, and agriculture, leading to a discrepancy of EUR 122mn. Additionally, the…
The Estonian government will impose a lower ceiling on parental benefits and a cap on sickness benefits as of 2026, ERR reports. The government will reduce the maximum rate for parental benefits from the current three times the average wage to twice the average wage. The cut will affect around 3,500 people annually, or about…
Estonia may need to raise its defence spending to 5% of GDP to implement NATO’s new defence plans, Defence Minister Hanno Pevkur stated, ERR reports. He said that Estonia clearly needed to acquire more capabilities, including air defence systems and equipment to deal with chemical and biological weapons. The money needed would amount to EUR…
Lithuania’s GDP growth will amount to 2.4% in 2024 and 2.6% in 2025, according to the International Monetary Fund’s (IMF) latest forecast, BNS reports. The country’s economic growth will be driven by the growth of real wages, public investments, and low inflation, the IMF report states. Average annual inflation will reach 1.2% in 2024, the…
Estonia’s three-party coalition of the Estonian Reform Party, Social Democratic Party (SDE), and Estonia 200 has published its new coalition agreement, ERR reports. Under the agreement, the coalition pledges to cut the budget deficit to 3% of GDP in 2025 and 2026, and to reduce it further in 2027. The new government will raise most…
Estonia’s three ruling parties are likely to draw up a new coalition agreement by 19 July 2024, the Estonian Reform Party’s candidate for prime minister, Kristen Michal, stated, ERR reports. He said that the three parties had already agreed on the majority of the text in the most important policy areas: competitiveness, growth, public finances,…
The European Commission will allocate an additional EUR 1.2bn of EU funds for the construction of the Rail Baltica railway, the project’s coordinator, RB Rail, announced, LSM reports. Of the sum, around EUR 370mn will go to Estonia, EUR 346mn to Latvia, and EUR 458mn to Lithuania. Together with national co-financing, total available funding will…
Lithuanian President Gitanas Nauseda was inaugurated as president for a second term on 12 July 2024, LRT reports. In his inaugural address, Nauseda pledged to strengthen national security, defend Lithuanian interests in foreign policy, continue supporting Ukraine, and foster ties with the US. He called for raising Lithuania’s defence budget to 4% of GDP by…
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…