SDE chairman: Tax rises could at least be discussed

Lauri Läänemets.
Lauri Läänemets. Source: Ken Mürk/ERR

Tax rises could be discussed in coalition negotiations as it will not be possible to reduce the budget deficit with cuts alone, said Social Democratic Party (SDE) Chairman Lauri Läänemets after the end of the second day of negotiations.

Läänemets said his party highlighted the billion euro deficit before the election.

"The truth is that it is not possible to cut a billion from the budget, it would mean we would either have to cut security, or pensions or take something away from education and the Social Democrats do not agree with that. We are talking about ways of increasing the budget because, for years and years, it has been kept at the same level on the revenue side but constantly increased on the expenditure side," he said.

Läänemets said additional revenues are needed.

"At the very least, this could be discussed. I understand that there is a willingness on all sides to discuss one proposal or another," he said.

Reform, SDE and Eesti 200 started coalition negotiations on Wednesday.

Both Reform and Eesti 200 are against changing the tax rate or raising taxes.

Prime Minister Kaja kallas (Reform) said finance issues will be discussed at the end of negotiations when the Ministry of Finance releases its spring forecast.

The ministry has said additional revenues, as well as cuts, will be needed. 


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Editor: Marko Tooming, Helen Wright

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