Speaking to ETV politics show "Esimene stuudio," Minister Kallas said: "For the Reform Party, security is the most vital issue, but Estonia needs more robustness and a balanced budget, and that is something which keeps me awake at night."

"We need to be able to explain to the public why we make the decisions in the government that we do. We need a national agreement whereby we will cut costs, raise taxes, and take out loans. We have to do all these things. Other than austerity measures, there are no alternatives," Kallas went on.

The minister said that this need not mean Kaja Kallas, no relation, should step down as prime minister.

"I am not waiting for Kaja Kallas to leave office. I am awaiting clarity. The current uncertainty is hampering the government's work," she said.

"There is still plenty of uncertainty in this government as whether there will be a change of prime minister. We are all waiting to see what happens at next week's informal EU summit," Kallas told "Esimene stuudio."

The Estonian economy cannot handle a tax hike of such significance as that which has been proposed, Kristina Kallas continued.

"Estonia needs to cut about one percent of GDP and implement 1 1 percent tax hike. We also need to take out loans for investments," she said, on the topic of economic policy.

Kallas also referred to austerity measures as "dirty work which the voters don't like."

"I agree that I might not be in government in 2027, but we must address these issues related to restoring state finances and ensuring Estonia's sustainability," Kallas added.

On that, while her party and Reform are willing to address state finances. "We need to convince SDE too," the minister went on.

In any case all options are on the table, including abandoning the planned abolition of the "tax hump" – bracket creep in other words.

Despite the relative importance Kallas said Reform have placed on dense spend, the minister said that in any case this may need to rise due to the deteriorating security situation.

New measures could include the sale of defense bonds, she said.

As for her own party, not the only Estonian political party to be facing internal strife at present but certainly one of, Kallas said she is considering running as party leader "very seriously," adding that Estonia "needs a center-right party," and that Eesti 200 requires "some introspection."

"It is not so much that the voter is impatient, but our expectations were unrealistic," Kallas outlined as the reasons for Eesti 200's growing unpopularity.

At the same time, the party is not rushing to pick a new leader – the next leadership elections are at the end of summer – though it has been too hasty in some of its decisions, for instance the expulsion of Züleyxa Izmailova, Kallas said.

Nonetheless, Eesti 200 is not faction-riven in the way the Conservative People's Party of Estonia (EKRE) is, the minister added.

"It is just a few people who couldn't get along at board level. Zuzu was one of them, but that problem is now resolved," Kallas continued.

Izmailova joined SDE on Wednesday.

Kristina Kallas was a co-founder of Eesti 200 and was party chair from 2018 until October 2022 when current Riigikogu Speaker Lauri Hussar was chosen as leader.

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