SDE held a party congress in Viljandi County Saturday which rather took the form of a "summer days" event (see gallery).

The party debated at that congress the week-long preliminary coalition talks triggered by the announcement that Kaja Kallas will be stepping down as prime minister this month, to pursue her candidacy for the High Representative of the Union for Foreign Affairs and Security Policy position.

Läänemets said that, unfortunately, from the point of view of public finances, only bad and worse options are on the table at the current negotiations.

He said: "Our firm position is to protect already vulnerable groups in society."

"For this reason the additional burden should be borne by those able to bear it, and both the wealthy and businesses alike must be given the opportunity to contribute, out of solidarity," Läänemets went on.

Sunday, July 21, could represent the first "control period" for the coalition to reach an agreement, Läänemets went on.

"In substance, we have largely negotiated everything, but there is still a bit of a way to go," he said, referencing state budget issues and the distribution of the tax burden as the most difficult matters at present.

Läänemets added that it was important for his party that pensions and the tax exemption threshold are not reduced in the wake of tax rises, that education continues to be accessible to all and that those local government services which sustain local life do not evaporate altogether, as a result of the cuts.

Läänemets told "Aktuaalne kaamera" that no tax hikes or new taxes have been agreed in the negotiations so far, adding there are "different working versions."

"The most important thing is that we cannot put the whole tax burden on the middle class and on the poor," he added.

Läänemets, currently interior minister, demurred on speculation of him being the next defense minister, adding that no one had made that proposal to him at that point in time and that positions in the new cabinet would be subdivided once the budgetary issues are agreed, and not before.

Kaja Kallas is expected to formally resign as prime minister tomorrow, Monday, which automatically triggers the end of the current Reform-SDE-Eesti 200 coalition and the need for a new coalition to be formed following negotiations, even if it involves the same three parties.

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