Reinsalu says Isamaa seeks a new start after 2027 election

Isamaa leader Urmas Reinsalu says his party aims to turn a new page in Estonia in spring 2027, arguing that meaningful change will only be possible after the next parliamentary elections, ERR reported. He also said Isamaa would soon seek a no-confidence vote against Prime Minister Kristen Michal.

Reinsalu said the government had failed to manage public finances and should have cut state administration costs further. He pointed to a planned 16 percent rise next year in salaries for central administration officials at the Ministry of Climate, saying he understood the frustration of teachers, police officers and rescue workers.

Asked how much teachers’ minimum salaries would have risen under an Isamaa government, Reinsalu did not give a figure. He said the party’s first priority would be to put budget policy in order and its second to support economic growth. He also said the government should restore dialogue with teachers and reallocate resources within ministries to give them greater confidence.

Reinsalu did not say how much cheaper diesel would be under an Isamaa government. He said excise duty should be temporarily lowered to its minimum level to prevent a fuel price shock. He criticised the government for failing to negotiate effectively at European level over the introduction of the ETS 2 system, which he said could lead to a 50-cent rise in fuel prices from January 1, 2028, according to fuel companies. He also pointed to a planned double excise increase on May 1, 2027.

Reinsalu said the government should ease regulatory costs in fuel prices in the coming months. Asked where Isamaa would find money to support people while avoiding tax increases, he did not give a direct answer. He said economic growth should be the source of revenue and argued that the government’s forecast of about 2 percent growth over the next four years was not ambitious enough. He put the economy’s potential real growth at 5 percent.

Reinsalu said that if Estonia’s economy were two billion euros larger in 2027, the budget deficit would be 2.5 percent rather than 4 percent. He argued that tax increases had suppressed economic activity and reduced tax revenue, and said any future tax cuts should be targeted to support the economy.