Minister of Economic Affairs: Public sector wages should not be cut

Minister of Economic Affairs and Infrastructure Taavi Aas
Minister of Economic Affairs and Infrastructure Taavi Aas Source: Siim Lõvi /ERR

Minister of Economic Affairs Taavi Aas (Center) has said it is not necessary to start cutting salaries in the public sector, but other public sector management costs should be reviewed. He thinks during the crisis, investments in the construction sector should be given priority.

"Today, it really seems that the situation is better than initially thought. Of course, we all understand that this crisis is not over yet, and it is certainly too early to be overly optimistic," Aas told ERR on Monday.

The summer economic forecast presented by the Ministry of Finance Martin Helme (EKRE) on Monday is based on the principle that no new restrictions will be imposed. According to Aas, the forecast is the basis for the new budget, but it is true that it is not known how long the crisis will last.

Aas said it is not possible to save money by cutting salaries. "I do not see an opportunity to cut public sector salaries, because as a result of the great struggle, the salaries of teachers have been raised, the salaries of internal security staff have been raised and so on. It is not sensible to go for salary cuts today."

Aas noted the first priority when spending the loan money given to Estonia should be investments. 

"I undoubtedly support investment in construction, the construction sector has been worried about the future. We know that private investment in the construction sector - today there is a risk that there will be less. It makes sense here if the public sector in the future - if there are projects, they will be launched faster," he said.

According to the Minister, it would also be reasonable to increase pensions next year. "I think it would make sense, because it's actually money that would come back to our economy pretty quickly. So from that position, we're definitely going to negotiate," he said.


Download the ERR News app for Android and iOS now and never miss an update!

Editor: Helen Wright

Hea lugeja, näeme et kasutate vanemat brauseri versiooni või vähelevinud brauserit.

Parema ja terviklikuma kasutajakogemuse tagamiseks soovitame alla laadida uusim versioon mõnest meie toetatud brauserist: