Taking part were Hanno Pevkur (Reform Party), Riina Sikkut (SDE), Margus Tsahkna (Eesti 200), Urmas Reinsalu (Isamaa), Martin Helme (EKRE) and Lauri Laats (Center Party).

Reinsalu said when the debate started that the government is fumbling, and that a negative budget should have been put together for 2023. "The IMF gave you a devastating score," he said.

Pevkur said the government is working as a team and accused Reinsalu of causing the [fiscal] situation in a previous government. He said that Estonia's economic situation is complicated and both cuts and new revenue are in order.

Tsahkna said that the government has a good economic plan put together by Minister of Economic Affairs Tiit Riisalo (Eesti 200). He described the plan as feasible. "We need to change the structure of the economy and invest more."

Sikkut noted that no one wants to hike taxes. She explained that defense spending, healthcare and education are necessities and paying for them requires more tax revenue. "Pensions and healthcare are not something we can blankly slash," she said.

Reinsalu claimed that revenue from new taxes is spent on the Reform Party's "tax hump" project (plan to abolish Estonia's gradual income tax reduction scheme estimated to cost north of €500 million – ed.).

Tsahkna said that the only kind of austerity that works is cutting evenly across the board in all ministries. "We are not willing to discuss tax hikes before costs have been thoroughly cut," the Eesti 200 head said.

Helme said that the government is effectively cutting pensions, that fixed costs have been raised by 10 percent annually and that the green transition is bankrupting Estonia.

Pevkur said that the problem with the state budget is that a lot of spending has been indexed. "A lot of the budget is locked down," he said.

The politician suggested that laying down what is effectively a progressive income tax was a mistake, and that people will get to keep more of their money after the system is abolished. "The average teacher stands to gain €1,300 annually."

He also agreed with Helme in that next to cuts, new revenue is needed, giving the examples of export opportunities, attracting capital and reducing red tape.

Laats said that austerity is only available to governments that have the people's trust. He described new taxes used to remedy deficit as cynical and proposed laying down a banking tax.

Sikkut said that everyone present shares in the responsibility simply by virtue of being politicians. She added that recent decisions have added to expenses while reducing revenue. "The tax hump could have been resolved in a way that would not impact the state budget," she suggested.

Tsahkna said that the crisis must not be wasted and Estonia cannot go back to old habits. "We need to review the budget and build a personal state (a system where the state would take the initiative in offering people services based on their individual needs – ed.)."

Reinsalu then boomed that "Riisalo's economic plan amounts to the same thing as the manifesto of the Communist Party."

Pevkur said that the Estonian economy depends on nearby export markets and has done well enough in the conditions of war. He remarked that Estonia has kept its tax burden at 33 percent, while the EU average is 41 percent.

Helme said that national defense spending has grown because the GDP has decreased, and that it is not the war that has bankrupted Estonia.

Laats noted that efforts to redistribute poverty won't get us far, and that the state should concentrate on export markets, highlighting recent tax hikes, instability and entrepreneurs lacking confidence as the main problems in Estonia.

Pevkur said that the government must provide investment support and ask businesses for their input. He agreed that salary advance needs to be put on ice for a time.

"The state budget strategy is not in accordance with reality," Reinsalu said, adding that the zero-budget initiative will be a fiasco.

Sikkut said that Estonia is the back marker when it comes to the subsistence of pensioners and the system needs more money.

But Pevkur countered by saying that pensions have grown a lot over the last 30 years, while salary advance has been faster than inflation. "We are seeing positive signs in the economy," he said.

Helme claimed that pensions have not grown faster than prices. "We have become the least successful Baltic country," he said.

Laats also did not agree with claims according to which pensioners are doing fine.

Tsahkna said that the Estonian economy will not be kickstarted by other more developed countries, and that the government needs to cut costs and borrow for investments.

But Reinsalu said that austerity would hit the elderly and children. He also suggested a moratorium on Estonia's planned climate law, adding that entrepreneurs want stable energy prices.

Laats once again proposed canceling the income tax change and laying down a banking tax.

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