"There will definitely be no tax hikes during this government's time. There is no such agreement," Peterson said.

He said that public revenue exceeds forecasts. "We're anticipating no fiscal problems this year."

The incoming minister added that parties will likely have to concentrate on tax policy and the state budget in their election campaigns.

Peterson gave the example of the unemployment and health insurance funds the tax base of which needs to grow if they are to remain sustainable.

Matters of the coronavirus also fall in the health and labor minister's administrative area. Peterson said that the aim is to avoid a situation where the government would have to address Covid issues from one day to the next. "We cannot have the government distracted from the war in Ukraine and there needs to be a measure of self-organization in society," he said, pointing to Estonia's threat level "traffic light" system, which Peterson suggested is underused.

Peterson has headed the Estonian Trade Unions Confederation for over nine years that will need to find a new director soon.

--

Follow ERR News on Facebook and Twitter and never miss an update!