Michal says opposition is panicking over failed economic narrative

Estonian Prime Minister and Reform Party leader Kristen Michal said opposition calls for snap elections after the government’s removal show that the opposition is panicking because its narrative about the economy no longer holds, ERR reported.

“The opposition’s narrative about a poor economy no longer holds. They are in a hurry because, as the elections approach, the claim that we are stuck in an economic quagmire will not stand up,” Michal wrote on social media.

He said the narrative was based on lies and propaganda that had since been disproved by facts and statistics from Statistics Estonia. According to Michal, the economy has grown throughout his time as prime minister and wage growth has been significantly faster than price growth. “The economy has grown in 14 of the past 17 years,” he said.

Michal also said the opposition’s “catastrophe narrative” on energy had collapsed. He said Finland had the cheapest electricity exchange price in the European Union in June and July, while Estonia had the second-cheapest price after Finland. He added that price growth caused by the war shock and global economic trends was declining, and that Estonia recorded the lowest price growth in the EU in July.

Michal said the opposition had also lost the initiative in the presidential election. He criticised the Estonian Conservative People’s Party for not participating, Isamaa for failing to remain united and the Centre Party for seeking to unconstitutionally prevent members of parliament from electing the president.

He said the opposition’s nervousness was not caused by the country’s performance, arguing that Estonia had done significantly better over the past two years than previously expected.

“The common strategy of the Estonian Conservative People’s Party, Isamaa and the Centre Party is built on the idea that Estonia and its people are doing badly,” Michal said. He argued that improving economic growth and confidence among businesses and consumers deprived the opposition of its political support.

Opposition parties Isamaa, the Centre Party and the Estonian Conservative People’s Party have called for the current minority government of the Reform Party and Estonia 200 to be removed and for snap elections to be held.