Power treaty of Reform Party and Soc Dems (SDE) amounts to some 3,700 words – three times less than text tying squirrels to dropped coalition partner IRL.
Aims abundant, time short
21st March 2014, 15:57
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With less than a year to govern, no wonder. However, the freshly created document quite overflows with goals, the effect of which will only be evident much later.
In tax policy, for instance, the spring coalition promises new environmental fees for 2016–2020, tax exempt minimum rise in 2015–2018 and development/execution of renewed pension system by 2019. Should some totally other kind of government come to power after the regular elections of 2015, there’s no guarantee that the work started will continue according to plan.
At that, the three favourite words in the new text are exactly the same as with former coalition: «Estonia», «Europe» and «[we will] continue». From there onwards, however, the Reform/SDE tandem vows to tirelessly «analyse», «work» and «raise», while the outgoing Reform/IRL coalition preferred to «support» and «guarantee».
At first glance, the new power treaty appears more social than the former one – as underlined already by starting with the family policy part. In the previous agreement, economic environment came topmost.
Raising 1st and 2nd child benefit to €45 a month is not the threefold increase desired by soc dems in the bill circling the Riigikogu earlier; still, it’s quite a step towards that. Regarding campaigning for the upcoming Riigikogu elections, this no doubt is a weighty argument – one which the spring-coalition will probably be remembered for.
The other remarkable step planned in social policy is harsh state duress to be applied to wring out alimonies for children: among other things, the coalition promises to freeze state benefits of debtors, and to draw the alimonies from tax returns – and even from funded pensions. Still, the agreement does not contain the much-talked-about state fund which would make payments instead of debtors and then proceed to collect the money.
Obviously, many readers are most eager to see their own income increase: for numerous state employees the treaty indeed does explicitly promise wage rise, including to teachers, policemen, rescuers, culture workers etc. No definite sums on paper, though. Still, we are reading about a solid promise to lift minimum wage to €390.
More time for debate
The document is somewhat contradictory regarding tax policy: on the one hand, it is talking about long-term preplanning of tax changes; on the other hand, it desires rapid additional rise of tobacco and alcohol excise. The rise of tax exempt minimum by ten euros a month will be felt, by people, as they fill the next income tax return.
Jürgen Ligi’s battle for enterprises to declare transactions of €1,000 and upwards has, according to agreement, been victorious – no matter that quite recently it was bitterly opposed by representative organisations and interest groups. Also, as expected, tax incentives for company cars will be cut.
The spring-coalition is not neglecting broad political issued; even here, the Rõivas-Mikser treaty looks to a future much more distant than allowed by the 2015 elections limit. Presidential elections are only due in 2016; even so, already now the fledgling coalition desires to alter presidential election rules, so as to «provide candidates more time for debate». That problem has a lot longer history than the latest political nagging: namely, it has for a long time been complained that as presidential candidates are set up just before the votes in Riigikogu, they will have almost no time to publicly introduce their views.
The other planned change is an obvious concession to soc dems – namely: the coalition wants to establish an order where the government will let Riigikogu discuss an EU commissioner candidate before his nomination. Still, the text does not indicate that the Riigikogu gets powers to decide the matter. As in these new circumstances Siim Kallas will probably continue as transport commissioner till the fall, the power coalition will probably manage to execute the change before the issue of sending Andrus Ansip to Brussels will be officially raised.
Regarding Riigikogu elections, a nod is made towards newcomers: parties participating for the very first time will be exempt of paying security: also, the parliamentary threshold will be somewhat lowered for single candidates.
Ease with citizenship
Surprisingly, the incoming coalition intends to abolish ban from Riigikogu members participating in local councils. Should that really come to pass, the Tallinn council will largely resemble Toompea – just like it used to be in the times of the legendary Jüri Mõis – Edgar Savisaar tussle.
Polemic is guaranteed regarding citizenship policy. On the one hand, the coalition promises not to alter Estonian citizenship policy. Meaning that the grey-passport-holders will not be automatically made Estonian citizens during the new coalition either. On the other hand, it is still planned to make obtaining citizenship easier for certain groups, as compared to now.
This is the direction long demanded by soc dems and Centre Party: appliers for citizenship aged 65 and over should only pass an oral language exam, and to children of non-citizens Estonian passports ought to be handed automatically – provided the parents will not protest. Up to now, it’s been the other way round: children of non-citizens do have the right for citizenship, but the parents had to apply. According to power treaty, the amendment would concern more than a thousand children born in Estonia, as at February.
The administrative reform prepared by regional minister Siim-Valmar Kiisler, regarding merger of communes, will probably stall during the new coalition. In its place, Reform and SDE promise to do their own reform which would clarify local government tasks and their financing.
Also importantly, some things are set to remain: defence spending will stay and two percent of GDP; the established principles of foreign and security policy will be untouched. The Estonian-Russian border treaty, now in Riigikogu, will be ratified despite events in Ukraine.
As a weird cultural-protectionist touch, the coalition promises to play more Estonian music over Public Broadcasting.