The tricky economic situation means the biggest question for the right-left coalition is next year's state budget, which will have to accommodate increased social spending and a tax cut, IRL and the Center Party representatives told ERR radio today.
Center Party's Mailis Reps said seven or eight changes to the tax environment shortly before the summer break have received criticism from many business associations as there has not been enough time for debate.
“The coalition is defined by a panicky drive to find cover for election promises,” Urmas Reinsalu, the head of IRL, said, adding that businesses and parents are suffering due to changes in the tax system and the postponement of the maternity pension.
On the positive side, the Center Party said the increase in child benefits is welcome news, while IRL praised the coalition's take on security policy, including the basing of NATO troops in Estonia.
The right-left Cabinet took office on March 26, after PM Andrus Ansip resigned a month earlier, toppling the whole government.