Regional minister to resign if no progress made on policies by mid-April
Minister of Regional Affairs Madis Kallas (SDE) said on Wednesday he will resign in mid-April if no progress is made on his proposed initiatives, the so-called "Robin Hood" tax redistribution policy and a capital lease program for farmers.
Kallas hinted at a possible resignation at the government's weekly press conference last Thursday. He said he did not have a pre-prepared statement, but it felt like the right moment as several issues collided simultaneously.
Kallas told ERR: "If before [the press conference] there is a letter saying that we are not going to move forward with this and we are not going to move forward with that, then it was exactly the right time."
Kallas said that coalition partners – Reform, SDE, and Eesti 200 – should stick to their agreements, discuss their problems, and say directly if something cannot be done.
"The most tedious thing is when the subject seems to be moving, but it actually isn't," said Kallas. "As a rather young politician at the national level, I'm not used to this and I do not think I will get used to it. I would like to see more concrete agreements, more concrete actions."
The minister's decision depends on the progress of the two initiatives. The politician said it has been difficult to lock down the details between ministries.
The so-called "Robin Hood" policy will redistribute tax money from wealthy municipalities to poorer areas. The expense to the state would be the same. Kallas wants the Riigikogu to adopt the change before the summer vacation.
However, Minister of Finance Mart Võrklaev (Reform) believes it will take longer than this. Reform thinks Kallas' plan is moving faster than previously agreed and will harshly impact the wealthiest municipalities.
Kallas has now reduced the amount of money he wants redistributed from €50 million to between €38 million and €43 million.
This has helped move the discussion forward. "We are no longer debating how much or on what scale we will do. Rather, it is a question of small details, precisely in terms of how we will also include the mitigation measures for Harju County," the minister said.
€50 million measure to buy agricultural land
Another concern is the capital lease measure for agricultural land created by the Rural Development Foundation (Maaelu Edendamise Sihtasutus).
The measure was initially created in response to the effects of the coronavirus crisis and allowed farmers to sell land to the state and then rent it back, with a promise they would eventually buy back the land.
Applications have not been accepted since summer 2023 as the pandemic has ended in Estonia. Farmers' associations requested the state continue the measure and remove references to the coronavirus crisis.
Kallas agrees with the entrepreneurs, but Reform asked for an analysis showing that state money would go to the right place.
He said progress was made in these negotiations after Võrklaev met with MES managers.
"We have agreed that this volume should be reduced somewhere between €45–50 million," Kallas confirmed. "Now we are stuck on the legal solution, whether it has to go through the Riigikogu or can be done by a government decision."
Deadline falls on April 17
Kallas wants both policies finalized by the end of March.
"Maybe I really too optimistic and too naive," the politician said, adding that he has set a clear goal.
"I have said that if, after one year, the regional minister fails to make a sufficient contribution to the reduction of regional inequalities and the improvement of the situation of Estonian agriculture, they should look in the mirror and admit to themselves that they have failed to meet the objectives that rural people and farmers have for them," he said.
The minister entered government on April 17 with the Reform, SDE, and Eesti 200 coalition. Previously, he had held the position of mayor of Saaremaa.
He plans to leave on April 17, exactly one year after taking office, if the situation is not resolved.
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Editor: Helen Wright