In principle, the coalition partners have agreed to cut 10 percent of their costs over the next three years. Reductions will be made to labor and management costs, as well as subsidies handed out by ministries. Investments will largly be spared.

There will also be some exceptions, for example, teachers' salaries, police officers and active-duty soldiers will be excluded when cutting labor costs,

The coalition agreements also lay out when the savings should be made.

But anyone who is waiting for more details about cuts will probably be disappointed when the agreement is published on Friday.

Decisions will be made in September

"Every minister and every ministry has to start setting these political priorities in their own area of government, where the cut is coming from. We are not at that stage yet," said Kristina Kallas, deputy chairman of Eesti 200 and minister of education and research.

Kallas explained that during the coalition talks – which lasted two weeks – it was not possible to decide on substantive cuts. However, she highlighted one area of importance for her party: means-tested subsidies.

"We would know, broadly speaking, from the Ministry of Finance's calculations how much we would save if our family and child benefits were means-tested. There is such a robust calculation, but it needs a lot of detail," Kallas said.

She said decisions need to be made in September.

SDE Deputy Chairman Minister of Health Riina Sikkut agrees. She said some decisions could be made at the end of August.

"And the logical time to make concrete decisions on cuts is also in the budget negotiations. Then all ministers-ministries will have time to decide on these numerical targets," she said.

According to Sikkut, no specific goal has been set for when the members of the emerging government must present their cut proposals. She did not speculate on how the cuts could be made at the Ministry of Social Affairs but acknowledged it will be done.

Kallas: Ready for difficult decisions

Minister of Justice Madis Timpson (Reform) reiterated the same points.

He noted that many salaries in the field of the Ministry of Justice are related to the Act on Professional Salaries of Senior Civil Servants. An amendment to the law last year, capped the amount wages can rise.

"And the judges are not happy about it, I know they are already writing to the courts complaining about it," Timpson said. "We already do not have all the positions filled. We do not have all the prosecutors' posts filled either," he added.

Timpson did not specify where cuts will be made. The story is similar in almost all ministries. Especially as it will only be revealed tomorrow who is leading each ministry.

In any case, difficult political decisions are still ahead.

"By the end of September we need to conclude these political agreements," Kallas said. "At the coalition negotiating table, it was clear that this willingness was there. But, as you know, at the moment when a decision really needs to be taken, these differences start to get stronger."

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