"These changes in responsibilities may indeed cause some initial confusion, but any change can also act as a positive catalyst," Prime Minister Kristen Michal told ERR. "People will reassess the tasks they perform, review their areas of responsibility and consider whether there might be ways to do what they've been doing more efficiently for the benefit of the economy or the people. And it's positive that in the same joint building where the ministries are mostly located together, it will be possible to create new synergies between departments and seek new solutions."

"The goal remains economic growth, faster planning processes and more efficient operations. If, during mergers or reviews, there is some confusion or questions arise about why something has been done more slowly or in a particular way, those issues need to be addressed collectively to find better new solutions. So, changes always bring a bit of confusion, but ideally, the end result is positive. Things will move faster, processes will smooth out and this will contribute to economic growth," Michal added.

The premier also emphasized the goal of reducing bureaucracy and speeding up planning processes.

"Based on these priorities, we have set our plans, which is why these changes in responsibilities have been made. In a modern state, making such changes in line with shifting priorities is quite normal," Michal said.

ERR asked Michal whether the transfer of digital matters to the Ministry of Justice was a demand from the Eesti 200 party during coalition negotiations. In the previous government, the position of minister of entrepreneurship and information technology belonged to Eesti 200, but it has now been replaced with the position of minister of economic affairs and industry, which has been assigned to Reform Party member Erkki Keldo.

"This is rather a logical division of responsibilities to render the digital domain –which is currently heavily regulated and where, in the future, we will need to review and possibly automate state activities – simpler in terms of processes, revive the digital tiger, cut bureaucracy and rethink rules related to the future development of artificial intelligence. These two areas coming together will create the synergy we need to do what the Estonian state and people expect," Michal replied.

"This division of responsibilities is less about political preferences and more about achieving these goals – economic growth and reducing bureaucracy. Strong fields will gain momentum and new fields will grow," he added.

"It's no secret that often a significant number of regulations come from the justice sector, which might hinder the freedom of rapidly developing new sectors to undertake certain initiatives. So, it makes sense for them to be closer together and try to find solutions. It's somewhat similar to the logic behind the creation of the Ministry of Climate, which brought together economic and environmental protection concerns. It's goal-oriented," the prime minister continued.

One of the biggest changes in responsibilities affects the Ministry of Economic Affairs and Communications and the minister of economic affairs and industry. This position is now responsible for land-use policy, spatial planning, the management of land and spatial domains, including spatial data and data registries, the management of spatial data services, activities related to land valuation, land management actions, the direction and implementation of land reform activities, the acquisition of land necessary for the state and the management of state-owned land without buildings. The position also oversees the relevant structural units of the Ministry of Regional Affairs and Agriculture.

The decision to transfer valuable agricultural land and state land to local governments will be made by the Ministry of Economic Affairs and Communications in coordination with the Ministry of Regional Affairs and Agriculture.

According to Michal, the reason for the significant number of land-related areas falling under the Minister of Economic Affairs and Industry is the need for a faster planning process to support industrial and economic growth.

"Very often, it is the slow pace of the planning process, with its various steps, that becomes the reason why a new investment doesn't happen, why an industry isn't modernized, why an Estonian entrepreneur doesn't pursue something or why foreign investors don't come here. Therefore, everything related to the new Land and Spatial Office will fall under the Minister of Economic Affairs and Industry," Michal said.

"Based on this goal, we also made changes in planning, and land issues go hand in hand with planning," Michal noted.

As for how much these changes in responsibilities will cost, Michal could not provide an estimate at this time.

"If there are additional expenses, they can be calculated later by the Government Office. I assume that these expenses will be rather low because all these areas are located in the same building or around the same building. They can very smoothly start collaborating with new functions," Michal concluded.

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