The talks were held not in Tallinn but at Vihula mõis (Vihula manor), a hotel in Lääne-Viru County, the second year in a row that the venue has been used for this purpose.

Võrklaev told AK that: "We pledged that all the ministers raise their 'new concerns,' where, on the one hand, savings can be made, but on the other, we have to look to the future and review what the challenges are."

Võrklaev characterized the atmosphere from day one at Vihula as "business-like," and Health Minister Riina Sikkut (SDE) concurred with this estimation, adding that: "So far as the budget goes, the situation is highly tense. The curve of people's expectations and the needs of public services, versus the long-term revenues line, still diverge, very strongly. There are structural problems which need to be resolved. But the atmosphere and the discussions are constructive; sometimes emotional, but not on the level of someone getting into a fight."

Sikkut added that so far as her area goes, savings are possible in operational costs, for instance, though not from healthcare sector workers' wages, or from the  Health Insurance Fund (Tervisekassa).

The cabinet arrived at Vihula amid great media interest Thursday for a two-day working stay.

Both next year's state budget and the four-year budget strategy, known as the RES in Estonian, are the focus of the talks.

Finding savings of €200 million as announced by Minister Võrklaev earlier in the week will prove challenging, cabinet ministers say; as reported by ERR news, an easing of budgetary rules the coalition set itself when entering office in April is not off the table.

Those cuts and their possible means were the subject of discussion on the Thursday evening; Minister Võrklaev said this would involve some tough decisions," especially since we are at a major disadvantage, while at the same time we need to do so much all at the same time."

The government says it hopes the state budget plan will be finalized today, Friday.

It must reach the Riigikogu for processing by the end of this month, with a view to getting it passed into legislation by year-end.

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