Headlines that herald the end of the free market sell newspapers. Understandable. However, the focus of the debate itself is becoming increasingly fundamental and something we really need to talk about. An economic model to bring prosperity to everyone in Estonia, instead of serving the interests of a select few.

It is clear that market economy is not going anywhere. Yet, the state already intervenes in the market and the economy, as the invisible hand cannot ensure resilience in crises, broad-based regional policy or sustainable food production. Those things are provided by state intervention in the right place and at the right time.

Instead of challenging state intervention, the question increasingly asked in Estonia is why isn't the state doing enough. Why are investments in production moving to other countries, to our neighbors? The coalition, made up next to the Social Democrats of right-wing parties, also sees no way around paying more attention to economic growth. We cannot say how much of what should be produced in Estonia, but we can support investments and create a better environment for business development.

Just like any other field, the economy is inevitably linked to the state and society. Without enough attention paid to economic development, Estonia could not keep up with others.

All states support domestic business, and Estonia cannot be an exception here. In other words, we could emulate others, such as Denmark, which is among the top three most competitive economies in the world, despite its 50 percent tax burden. A few weeks ago, the government decided to put €160 million toward attracting major investments. It was my clear request for at least 40 percent of that money to end up outside major cities and the so-called golden circle municipalities that surround them.

What would happen without state intervention?

Agriculture is one clear example of the state involving itself in matters of the economy. Without agricultural support, all major foods would become massively more expensive. This is the case not just in Estonia, but all of Europe, USA and elsewhere.

Agriculture is among the largest sectors relying on subsidies, while the latter make it possible to have high-quality local produce at manageable prices. That is why it is one of the European Union's key goals.

Let us for a moment toy with the idea of switching off agricultural support.

• Food would be twice as expensive on average, perhaps more. But no one can live without sustenance.
• An unlimited international market and unsubsidized local agriculture would decimate the availability of domestic produce.
• It would be virtually impossible to ensure food safety, as it would be based on court rulings in cases of consumer versus producer.
• Next to so-called real agricultural producers, there would be "assembly lines" where animals would be kept following naught but economic considerations, paying minimal attention to their species-specific needs.
• Animal diseases would spread almost uncontrollably, endangering animals, entrepreneurs and consumers.
• Buildings that animals are kept in would offer poor conditions, as relevant investments would be too much for many businesses.

Regional policy also depends on state intervention

Without a functional regional policy and state intervention, most people would move to Tallinn for greater efficiency. But we don't want that, not least because having people everywhere in Estonia is a cornerstone of national security. Not to mention local food production. But our culture is also based largely on local communities.

What would happen if regional policy had no government component?

• Public transport would only be available between major cities and cost about twice what it does now. There would only be toll roads.
• Smaller rural municipalities would find it even more difficult to maintain schoolhouses, kindergartens and offer social services.
• Child and elderly-related services would be paid and affordable only in places with a lot of residents – in cities.
• Local culture and sport would rely mostly on private sponsorship.
• Soviet-era apartment buildings would soon fall apart and be deserted. We would be in for a housing crisis.
• Urbanization would be much faster than it is currently.

That is why the government has tied several enterprise support measures to regional policy. To make sure life would continue to exist outside Tallinn and Tartu and their near vicinity. We are creating new jobs and making sure rural areas have consumers.

In recent years, we in Europe have survived the coronavirus crisis and the start of full-scale war in Ukraine. This has forced many developed states to reshuffle their economic policies. In difficult times, the government has the crucial task of livening up the economy, instead of putting itself on standby and placing all bets on the invisible hand of the market.

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