ERR asked Minister Erkki Keldo whether the new government will continue its predecessor's policy of privatizing state-owned enterprises.

The previous government had earmarked five state-owned companies for privatization: Nordic Aviation Group, Teede Tehnokeskus, Operail, Transpordi Varahaldus and the state's stake in Port of Tallinn, reducing its share to up to 51 percent. Additionally, the government aimed to partially privatize two subsidiaries of Eesti Energia: Enefit and Enefit Green.

According to Keldo, the new government plans to proceed with the privatization policy. "The previous government conducted a review of state-owned companies. The intention is to privatize those companies that are not essential or necessary for the primary activities of the state. A detailed discussion in the government is still ahead to decide which companies and to what extent to privatize," he said.

The new government has not yet discussed whether it will change the list of companies slated for privatization.

"There hasn't been a discussion on this yet, as the new government has only been operational for a little over two weeks," Keldo said. "However, what was agreed upon in the previous coalition agreement includes privatizing companies that are not strategically necessary for the state, or even selling a minority stake in a strategic company like Enefit Green by either increasing the share or listing it."

The previous government decided to further analyze the privatization need for national mail carrier Eesti Post and lottery company Eesti Loto.

Experts have suggested that Eesti Post and Eesti Loto could be of interest to investors.

Regional and Agriculture Minister Piret Hartman (SDE) wrote in Äripäev that her ministry is analyzing the privatization of Eesti Post via the stock market, but this would not happen before 2026.

Keldo stated that there is no information yet on what will happen with these companies. "Regarding Eesti Post and Eesti Loto, both are profitable companies, and ministries have previously deemed it more appropriate to direct these companies towards privatization. However, further analysis is needed to determine if and how prudent it is to keep them under state ownership."

"We know that Eesti Post has the task of providing national postal services, but they are also heavily involved in commerce and parcel services. The question has been whether it makes sense for the state to maintain ownership or to sell an additional stake and use the funds elsewhere. But this discussion has yet to be held," Keldo explained.

ERR asked why the state owns Eesti Loto, which manages gambling operations.

Keldo noted that Eesti Loto has been profitable and has provided additional revenue for the state (Eesti Loto's profit last year was over €12 million, with nearly 400,000 unique players).

"I believe that sectors of business that are not necessary for the state to govern generally perform better and are more efficient in the private sector," Keldo said. "However, since gambling can also be a potential vice, we must consider the overall societal situation to determine whether it is more beneficial for society as a whole for this to be under private sector control or for the state to maintain some format of oversight according to its societal mandate."

The government plans to redefine ownership expectations for state-owned companies.

"As described in our coalition agreement, due to the difficult financial situation of the state, we have agreed on cuts at the central government level and among various sub-agencies. Similarly, we have agreed that the owners will review the expectations for all foundations and enterprises. Ownership expectations will certainly involve reducing operational costs," Keldo said.

He noted that the boards of these companies must also discuss potential future directions. "The state's task is currently to review itself and its activities – perhaps some activities are no longer necessary. This also applies to enterprises and other foundations."

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