Minority government needs opposition votes to pass Estonia’s 2027 budget

Estonia’s minority government will need opposition support to pass its 2027 state budget, ERR reported, giving opposition parties a chance to press for their proposals.

Prime Minister Kristen Michal presented the budget to the Riigikogu, Estonia’s parliament, on Tuesday. He called it responsible and said the government was ready to consider sensible proposals, while noting that parliament could not change the budget balance.

Centre Party MP Lauri Laats said his party would find it difficult to support the budget unless it included a cut to value-added tax on food. He also called for action on fuel prices, including lower excise duties.

Isamaa MP Aivar Kokk said the government should consider cutting excise duties and reducing VAT on gas. He also called for the planned excise increases to be postponed again, noting that a twofold increase is scheduled for May 1 next year.

The Social Democrats are widely seen in parliament as a potential source of the extra votes the government needs. Party leader Lauri Läänemets rejected the idea that the party was bargaining, saying the budget includes only 7.5 million euros in social-sector funds for negotiations, while at least 30 million euros is needed for special care. He said the party would decide how to vote in November or December.

EKRE leader Martin Helme said his party would vote against the budget, which he described as full of populist promises. He argued it would be better not to pass a budget, but to use this year’s spending plans for the first months of next year to avoid additional borrowing. In that case, a new government formed after the March parliamentary election would draw up the budget.