Finance Minister Jürgen Ligi (Reform) joined Michal in the criticism of the statements, which they say create economic uncertainty, and were made by Institute of Economic Research (EKI), Peeter Raudsepp.

Michal said that Raudsepp is mistaken about the facts adding his words may become a self-fulfilling prophecy.

Speaking at the regular cabinet press conference Thursday, Michal said: "If we stir ourselves up and talk down the market and economy, making life more uncertain, then this will likely come to be. Talking down the market and creating uncertainty in the economy cannot be a goal."

"The head or director, or whatever his title is, of the Institute of Economic Research announced that we are about to be among the five most expensive countries in Europe. However, the facts show that in the European economic area we lie in 15th place; 12th in the EU," the prime minister went on.

Finance Minister Ligi echoed the words. "It is not the role of the Institute of Economic Research to constantly trash the economy and then go on to investigate how much it has contracted. This has been happening recently, with discussions of that kind being taken to the Riigikogu. This paradigm shift is wholly total. Moreover, it is not the institute's role to shape political conditions and then investigate them and claim that now here is the solution," he said.

As to what the institute's role might instead be, the prime minister recalled that during former directors Leev Kuuma and Marje Josing's times in office, it always sought out the positive aspects rather than acting as a naysayer.

Therefore, the Chamber of Commerce and Industry must also ask themselves, if the Institute of Economic Research is painting a bleaker picture of the market, what benefit does this bring to Estonian business? This is not a call to reprimand anyone, but simply a fact check. It's important to be accurate with facts," Michal went on.

The prime minister said Estonia's tax burden could rise to around 35 percent this year according to unofficial estimates, and then around 36 percent by 2026, which he said would be seventh lowest in the EU, assuming other countries remained where they were.

By 2026, Estonia would have the 11th from bottom lowest tax burden."This is still far from the average. Today, the European Union average is 41.7 percent," Michal said.

During the presentation of the latest overview and forecast of Estonia's economic situation held Tuesday, Peeter Raudsepp stated that Estonia is on its way to becoming one of the five most expensive countries in Europe.

"As we move forward, new taxes, including the new VAT rate, will have a significant impact. Where are we headed? We are moving toward becoming one of the five most expensive countries in Europe," Raudsepp said at the time.

The EKI 's permanent members have included the Bank of Estonia and various ministries, as well as the Chamber of Commerce (Eesti Kaubandus-Tööstuskoda).

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