EDITORIAL ⟩ The Government's Abracadabra

Photo: Tairo Lutter

• The government's concern for people's well-being does not seem genuine.
• It appears the public sector is reluctant to cut its expenses.
• Continuing as we have will eventually leave us with nothing to sustain the state.

During Thursday's government press conference, the prime minister, foreign minister, interior minister, and social protection minister all tried to project an image of being active and in good spirits, even making jokes. They shared positive news with the public; for instance, Kaja Kallas (Reform Party) mentioned that over the last thirty years, the average salary has increased 26 times, whereas prices have only risen 5.42 times.

The methodology behind these calculations is unclear, yet it is undeniable that finding a decent meal for under ten euros is now a challenge. Ten euros, when converted to the Estonian kroon, amounts to 156.466 kroons. If we apply the reported inflation rate of 5.42, this translates to an equivalent cost of 28 kroons and 87 cents for a lunch in 1994—prices that were unheard of at the time.

We also heard congratulations on the occasion of the upcoming International Women's Day, and pensioners were likely pleased to hear that the average old-age pension is expected to increase 10.6 percent on April 1. However, there have been reports that Minister of Social Protection Signe Riisalo has sent on a round of approvals a bill aimed at establishing a basic exemption for pensions at 776 euros, while amounts above this would be taxable for pensioners.

This, as well as Interior Minister Lauri Läänemets' (SDE) talk of shelters, alongside a discussion of a progressive income tax during the press conference, appeared to be mere window dressing. Such penny-pinching and the ideology fueling it are unlikely to inject additional financial resources into Estonia's treasury.

In recent years, Estonians have been hit by inflation and various tax increases. Entrepreneurs have long considered the government to be one of the biggest risk factors. In this context, the government's concern for people's well-being does not appear sincere.

There is no indication of the public sector being willing to cut back in our prolonged economic downturn.

Adding to this, public sector wage increases in the last quarter of the previous year were twice that of the private sector, with public sector wages having been significantly higher than those in the private sector for quite some time. These wages, paid out of the state budget and supported by Estonian taxpayers, include those of essential workers like rescuers, teachers, and police officers, who are traditionally on the lower end of the pay scale.

In summary, there is no indication of the public sector being willing to cut back in our prolonged economic downturn. At Postimees' economic conference on Wednesday, Climate Minister Kristen Michal (Reform Party) presented a slide showing ministry budget cuts totaling approximately 50 million euros, with the Ministry of Economic Affairs and Communications making the most significant cut of 7.65 percent of its budget. Considering the total budget expenses of 17.67 billion euros, these cuts are modest.

Concurring with Ragn-Sells CEO Kai Realo's observation at Postimees' economic conference seems reasonable: "Continuing as we have for the past two years will eventually leave us with nothing to sustain the state." It is thus unsurprising that, per pollster Turu-uuringute AS, there has been a 15–19 percent decline over the last year in public trust towards political parties, the parliament, prime minister, and government.