Advisor to former PM: Coalition agreement also holds good news for entrepreneurs

Ardo Hansson, who served as an economic advisor to Kaja Kallas, stated that alongside negative messages for entrepreneurs, the coalition agreement also contains several positive messages.
Hansson noted that the coalition agreement includes several positive messages for entrepreneurs, despite the presence of challenging elements typical for the current times. He told ERR, "When faced with tough choices, it's natural that there are difficult aspects, but there are definitely quite a few positive messages for entrepreneurs as well."
Hansson highlighted the reduction of bureaucracy and the appointment of a minister specifically focused on this area as positive aspects. "I see it as a rather positive program overall, and we shouldn't overemphasize the negative aspects," he added.
He also stressed the importance of a clear focus on the country's finances. "If there is no concrete plan to improve this, it's like having an axe hanging over your head. Entrepreneurs prefer clarity in one direction or another, which allows for planning," Hansson stated.
Regarding the proposal to impose a 2 percent tax on company profits, Hansson was cautious. "The devil is in the details. The text is very laconic, and these things will be examined more closely. It's natural that no one is happy about cuts or tax increases," he said.
Swedbank's chief economist, Tõnu Mertsina, noted that the new government's proposed tax increases would primarily affect lower-income individuals, potentially slowing consumption growth and reducing tax revenues. Hansson responded by saying, "These details are still to be worked out. The proposals are very general at the moment. Over the past couple of years, much of the previous government's efforts were aimed at the lower deciles or poorer people, including rapid pension increases, higher tax-free allowances and various support measures. We need to look at the overall picture, considering economic development and the impact of different measures."
Hansson pointed out that all forecasts indicate an improvement. However, much depends on external conditions, as 68 percent of Estonia's industrial production is sold abroad, limiting the government's ability to influence the manufacturing sector significantly. He expressed caution about expecting the government to make dramatic changes in a small, open economy like Estonia's, particularly given the already strong and highly regarded business environment and limited fiscal space.
Hansson mentioned that he would decide next week whether to continue serving as an economic advisor to Prime Minister Kristen Michal (Refoem).
--
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Aleksander Krjukov, Marcus Turovski