EA back in profit after nearly three years.
Postimees Digest, Friday, July 26
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National airline Estonian Air managed a small profit in June as the company's reorganization plan seems to be yielding results. The company's first half-year sales revenue amounted to 35.7 million euros, making for a 19 percent decline compared to a year ago, while its net loss shrank by 61 percent to just 5.8 million euros for the period. "The financials show that our restructuring plan is working. We have completed making major changes and can now move on with operative plans in order to ensure sustainability," said CEO Jan Palmer. The executive added that the airline expects to make a small loss in the second half-year and that stable profitability should return by 2015. Palmer also said that while the airline has a contract for an additional 12 million euros in state aid, it will do everything in its power not to have need for it. The European Commission is yet to make a decision concerning the legality of state aid the government has made available to save the airline.
Audit office: parliament to lose control over the budget.
The National Audit Office finds that the new state budget balance bill will diminish the parliament's powers as concerns Estonia's state budget. "The National Audit Office finds that contrary to what is claimed in the explanatory memorandum of the bill, it will actually work to lessen the parliament's role in budget proceedings. The budget to be passed by the parliament will become vaguer and the right of the Riigikogu to make decisions regarding reserves and guarantees will diminish," the agency's letter reads. The audit office's criticism is based on the fact that according to the new bill, implementing provisions no longer need to be presented to the parliament as part of the draft budget.