Tax hikes, extent of austerity and munitions decisions expected in a month

While the Reform Party, Eesti 200 and the Social Democratic Party will spend this week mapping out major topics for negotiations, coalition talks will start in earnest next Monday. The new coalition agreement, which the sides hope to have by month's end, should provide clarity in terms of rising taxes, budget cuts as well as money needed to procure munitions for the EDF.
Incoming Reform Party head Kristen Michal and his counterparts at Eesti 200 and the Social Democratic Party (SDE), Margus Tsahkna and Lauri Läänemets, have signaled that they wish to retain the current coalition.
The trio met Monday to discuss upcoming coalition negotiations.
Lauri Läänemets said that it was decided to hold so-called preparatory consultations this week.
"We will be looking at major and more general issues and how to set about solving them. We'll be preparing for the discussions of the coming weeks," Läänemets said, adding that the other thing is deciding how to fix state finances and the state budget.
Talks in the traditional sense will start next week. "We will be opening up the debates in more detail and trying to go over all the topics," the SDE leader said. "Hopefully, we'll be able to make enough progress for the Riigikogu to convene in late July or early August so the new government can take office."
Talks can officially start once Kaja Kallas resigns
Läänemets said that the sides will probably meet in the Riigikogu building. Both him and Eesti 200 head Margus Tsahkna have referred to the coming weeks' discussions as consultations rather than coalition talks.
Maris Lauri, deputy chair of the Reform Party, explained that even though the party board confirmed Michal as its prime ministerial candidate, he is still the current government's climate minister as far as the Constitution is concerned.
Prime Minister Kaja Kallas has signaled she plans to resign after the July 11 NATO summit, which is when the president can officially set up a new prime ministerial candidate.
Lauri added that the president will likely take a few days for deliberation and meeting with party heads before making the offer.
From there, Michal will have two weeks in which to form a government, and it is only then that negotiations can officially be referred to as coalition talks.
New coalition agreement to be lighter than its predecessor
"We will revise the existing coalition agreement, throw out the things that no longer need to be done, that are no longer practicable, and concentrate primarily on things that need fixing," Margus Tsahkna said.
Maris Lauri and Margus Tsahkna mentioned security, economy and the state budget among the more important topics, while Läänemets added people's coping to the list.
Tsahkna hopes that Minister of Economic Affairs Tiit Riisalo's (Eesti 200) economic recovery plan, which the current government has not made time for, will largely be carried out by the incoming cabinet.
Coalition agreement to reveal which taxes will go up
All the topics are tied to the state budget in one way or another. Maris Lauri said that while state budget talks to follow the summer economic forecast might cause minor changes, the broad strokes fiscal decisions should be made by early August.
Läänemets and Tsahkna suggested as much, meaning that the next three years' tax hikes, the logic of austerity and how much extra munitions funding can be found should become clear inside a month's time.
"These choices will need to be included in the coalition agreement as they are political decisions pure and simple," Tsahkna noted. "Budget deliberations will concentrate on specific measures, effects etc. But you need to have a political agreement before that."
Michal cuts Võrklaev from the negotiating team
Maris Lauri said that she believes ministries are prepared to facilitate the talks by providing overviews and forecasts despite the summer vacation period.
Reading the Reform Party's press release from the weekend, it seems that Minister of Finance Mart Võrklaev at least can stick to his routine as he will not be included in Reform's negotiating delegation this time.
Lauri said that the party's delegation will include its deputy chairmen, Riigikogu whip, Urmas Klaas representing regional branches and Minister of Social Affairs Signe Riisalo as the head of a ministry with a huge and very sensitive budget.
Margus Tsahkna said that various Eesti 200 members will participate in working groups, while Lauri Läänemets noted that SDE's negotiating team will be decided Tuesday evening.
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Editor: Merili Nael, Marcus Turovski