Before delivering her critical remarks, Kaja Kallas stated that she would refrain from criticizing the new leader of the Reform Party in the future.

"I will not become the kind of former party leader who constantly criticizes their successor in public. Today is my last day to criticize the current government without breaking that promise. Therefore, there are a few things I need to address," Kallas said.

"First of all, I believe that delaying the elimination of the tax hump (Estonia's gradual basic exemption reduction scheme – ed.) is a mistake. Removing the tax hump increases people's incomes and lowers labor taxes. Both the IMF and the Bank of Estonia have highlighted the removal of the tax hump as one of the most important reforms for promoting economic growth in the near future. We won two elections with the promise to remove the tax hump. Essentially, this delay means entrenching a progressive income tax, which the Reform Party has always opposed," Kallas explained.

"Even worse, in my opinion, is the decision to introduce corporate income tax. This directly contradicts our principles and promises. With such decisions, we are squandering the mandate given to us by our voters and undermining a tax environment that has not only served Estonia well but has also been repeatedly recognized internationally as one of the most competitive," Kallas added.

She emphasized that the tax system must be simple and understandable to everyone and should support the foundation of the economy – private enterprise. "The principle must be that we do not tax what we want to see grow. We want companies to develop and reinvest their profits into their people, employees and growth," Kallas said.

"If we retreat from our core promises and principles, then the question arises: how are we different from other parties?" Kallas concluded.

Repeating old mistakes and imitating democracy

Kaja Kallas also had criticism regarding how the general assembly was convened.

"Today's event feels somewhat strange. I stepped down as party leader in June and proposed holding the general assembly immediately to elect a new leader, who would then also become the prime ministerial candidate. Unfortunately, the majority of the board decided that democracy was too risky and postponed the general assembly to September, ensuring that no one would challenge the sitting prime minister. I suppose there's some satisfaction in repeating old mistakes and imitating democracy, though I've yet to discover it," Kallas remarked.

"But the board members can explain why they thought this was the better approach," she added.

Kallas recalled 2018, a time she described as very difficult for the party, both financially and in terms of team spirit.

"The financial situation of the party was, to put it mildly, complicated. In 2017, the party's income was two million euros, while expenses were three million euros. In other words, we spent 50 percent more than we earned. This was not only our worst financial performance to date, but it was also quite an embarrassment for a party whose core mantra has always been – and hopefully will remain – sound public finances and a balanced budget," Kallas said.

"In addition, the party had developed internal factions, with members tearing each other apart instead of focusing on political opponents. And although, as the [Singer Vinger] song lyrics go, 'you don't die in a civil war,' such internal conflict wounds and creates bitterness that takes a long time to heal. Some of those wounds are still open, though on the whole, I think we can say that today we are a fairly harmonious family," Kallas continued.

Reflecting on her time as party leader, Kallas highlighted improved morale, teamwork within the party, the recovery of its financial standing and successful election results as some of her key achievements.

On Sunday, the Reform Party held its general assembly in Tallinn, where Kristen Michal took over the leadership of the party from Kaja Kallas, taking 664 votes from the total 818 participating delegates.

--

Follow ERR News on Facebook and Twitter and never miss an update!