The speculation has it that Kallas, a former MEP, would take up a high-level European Commission post after next month's European Parliament elections.

If she were to leave office, it would spell the dissolution of the Reform-SDE-Eesti 200 coalition.

Margus Tsahkna, also Eesti 200's leader, made his remarks in a short interview given to ETV's "Aktuaalne kaamera," which follows in its entirety.

Considering how difficult it was to implement a €100 million cut, what hope is there of salvaging next year's state budget?

I am saddened that we were unable to agree on a percentage of cuts across the board and within the coalition for next year, as we are simply marking time on this now. Around a five percent cross-cut will need to be made. 2025 will prove to be a very challenging year, and we also know that the security situation will not improve. So, this all really bothers me.

However, it is important that we decided to implement a supplementary budget of €175 million and managed to maintain ambition in terms of cuts, given over €100 million is going towards cuts.

The government says it is not planning any new tax hikes, while it seems there will be no drastic cuts made either. So can foresee any prospect of next year's budget deficit not exceeding the [EU's] 3 percent of GDP rule?

As of the present, it is still running at over 5 percent, so I am not very optimistic on this. Cuts are coming, so-called cross-cuts, save for defense investments. My experience tells me that we need to agree on the percentage we are targeting. Additionally, we need to deal with those economic stimulus measures which require investments. So taking this all together, there is nothing straightforward to look forward to in the autumn.

Should the decision to eliminate the "tax hump" be reversed?

My belief is that everything remains on the table until there is a political compact. If we find no desire within this coalition to make any harsh cuts, then we need to investigate if we can enforce the tax hump removal. Everything is on the table. We do not have an agreement on anything for next year as yet.

Would the government be more effective if the Social Democrats, who say that taxes should be raised rather than cuts made, were ejected from the coalition?

I hope that this government remains capable of functioning. And today we demonstrated that it is. While a few days ago we had no agreement whatsoever; I thought perhaps one wouldn't be forthcoming, in reality, we made it.

At the same time, there is indeed an ideological conflict within this coalition. Eesti 200 does not support tax increases. We are willing to discuss, for example, a broad-based security tax, but that would only be for 2025. Simply saying that we can take more money but are not capable of cutting the fat from our state, well we do not agree with that.

Does part of the government's apparent lethargy relate to awaiting if Kaja Kallas will take up a position in the European Commission?

I'm not going to beat around the bush; that question is indeed in the air. This is not just any old politician either; we're talking about the prime minister of Estonia.

If she attains some high-level post, it is clear that this government would collapse. It would no longer exist, and that would leave its mark.

I hope that this question will be clarified soon enough, as to whether Kaja Kallas stays or goes. As of today the government is functioning, all the ministers are doing their jobs, but there is still this question mark. There is no point in denying that.

From the perspective of Eesti 200, is it better if Kaja Kallas leaves for the European Commission or stays here?

I just want this coalition to work, for no one to have any expectations to hide behind, and for us to know who we are negotiating with during the autumn budget talks. Clarity is the most important thing for this coalition.

Certainly, Kaja Kallas would be a very strong representative for Estonia at the European level in terms of international politics, but I want the Estonian government to be effective, and for no doubts or hesitations to overshadow this cooperation.

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