First of all, I must commend that it's a significant step forward for Estonia to now have a minister of economic affairs and industry. For the first time in a while, there seems to be a proper attitude towards the manufacturing industry, which is the largest exporter and a creator of well-paying jobs across Estonia.

We recommend that the new minister, Erkki Keldo, create the position of deputy secretary general for industry to implement the good ideas in the coalition agreement. It is peculiar that some sectors, without exaggeration, a hundred times smaller, have an advocate at the deputy secretary general level in the ministry, while the industry, employing over 100,000 people in Estonia, does not.

Estonian industrialists are eager to welcome new entrepreneurs from abroad since, as exporters, we are not competitors; the more of us there are, the louder our voice in Estonia will be. The coalition agreement indeed aims to attract new foreign-owned industrial companies to Estonia.

However, I would also recall that Estonia's current industrial sector, with its hundreds of significant taxpayers, has long been established. They contribute hundreds of millions of euros to the state treasury each month. They would gladly contribute even more if long-known barriers to growth and export were removed. Here are five decisions the new government could make to grow the economy, tax revenue and Estonian families' incomes.

Economy needs to be everyone's concern

There are several areas where the state essentially holds a monopoly and where citizens, despite their best intentions, cannot resolve bottlenecks on their own. These areas include education, energy and public spatial planning (including construction permits). Addressing these issues requires political will and competent officials.

There have been times when ministries or other institutions have responded to the main concerns of entrepreneurs by saying, "We are not the Ministry of Economic Affairs; this is not our issue." This attitude should certainly be avoided. For instance, if climate, education or regional policies impact our economic environment and competitiveness, they must be managed in a way that supports entrepreneurship.

Export above all

Estonia has too little money, and only exports can bring more money into the country. However, the new coalition agreement only briefly mentions exports. We hope this is because the importance of exports is simply seen as fundamental.

Industrial companies are waiting for a clear plan and involvement from the government regarding exports. There are several low-cost but highly beneficial steps that could be decided and implemented immediately, such as a measure to provide export advisors to trade associations. We are happy to provide advice, as many improvements could be made with just a decision from the minister.

Defense industry to stand on the shoulders of existing giants

The founder of modern physics, Isaac Newton, once said, "If I have seen further, it is by standing on the shoulders of giants." Similarly, the expected significant growth in Estonia's defense industry is possible only because we already have a strong sector in machinery and other high-tech industries, which can support the production of drones, sensors and complex munitions.

Our emerging and growing defense industry will not operate in a vacuum; its foundation must grow and strengthen in tandem. The entire industrial sector is part of Estonia's comprehensive defense capability. Therefore, many of the activities outlined in the coalition agreement's defense industry section, such as direct contracts, should be extended to the entire industrial sector.

Everything hinges on education

Estonia is facing a severe shortage of engineers and skilled workers. The growth of exports and the standard of living are directly hindered by this lack of necessary labor. There is no time to delay addressing this issue.

Therefore, we expect clear deadlines for the education and labor market activities outlined in the coalition agreement to be set by this fall, specifying when concrete plans will be finalized and actions implemented.

We commend the coalition agreement for specifically highlighting vocational education reform. Modern vocational education, or applied high school, should allow a 20-year-old specialist to earn a salary of €2,000 and pursue higher education in the future. This approach should be the norm in secondary education. We are ready to assist in helping Estonia reach this level of secondary education, which is characteristic of developed industrial nations.

Who reduced the red tape of reducing red tape?

The coalition agreement's goals for reducing bureaucracy are very welcome. However, there is a strong suspicion that implementing these goals might itself get bogged down in existing bureaucracy.

What should be done? It is crucial to establish swift and minimally bureaucratic decision-making processes right from the start and to set clear deadlines. We must avoid a situation where "reducing bureaucracy" becomes a vague activity that remains "in progress" or "under consideration" for years without any real improvement for Estonian businesses.

A key factor in reducing bureaucracy is digitalization. Special attention must be paid to ensure that digital governance moving to the Ministry of Justice does not limit ambitions solely to the legal sector. Everything that can be digitized should be, and this should be done wherever it simplifies interactions between citizens, businesses and the government.

Smart industry is the economic sector that can make the country and its people wealthy if it flourishes, but its stagnation means poverty. We look forward to meaningful cooperation with the new government. Perhaps the dream of being among the five wealthiest countries still lives on?

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