Kristen Michal: People need to be given more freedom
The state must act where there is no other way. However, when it intervenes, the state must be efficient, strong and decisive. In other areas, we must understand that our success is a collective creation, with the main author being the free citizen. Life improves only when solutions are in the hands of citizens, not dictated by the state, said Kristen Michal in a speech marking the 30th anniversary of the Reform Party.
In 30 years, Estonia has changed beyond recognition. We once had empty, pothole-filled streets, tired and unpainted buildings, outdated infrastructure, and shabby, smoke-belching Russian cars and Hungarian buses. Our cities and villages were neglected. How easy it is to forget all that.
Walking across Estonia in the summer, I now see a completely different picture. We see beautiful cities and villages lovingly restored. We see gardens and homes cared for by Estonian people. We travel on well-maintained and well-lit roads, streets and paths, fitness tracks and bridges. We see modern cars, buses and trains. We drink clean tap water. We admire gleaming business districts and new production facilities.
Over 30 years, Estonia's economy and state budget have grown nearly 30-fold. Who would have believed it while standing in the Baltic Way? But let's not talk about money. Let's focus on what we can truly be proud of.
Our greatest value lies in not only catching up with other Western democracies but also becoming a role model for them. We are among the ten strongest rule-of-law countries in the world. Has any of our fellow Baltic states surpassed us? No!
In terms of democratic strength rankings, we are at the very top globally. Estonia is also among the countries with the lowest corruption risk worldwide. There is always room for improvement, but ahead of us are only a few long-established Western democracies.
Our tax system has repeatedly been ranked among the world's most competitive. Although listening to our everyday debates, it may seem hard to believe, it remains true even today. We are second in the world for global net freedom, right behind Iceland. Our digital state and IT companies continue to serve as a model for others.
This list could go on for much longer, but the message is clear: Estonia has risen among the most successful countries in the world—those that are the freest and best prepared for the future.
The Reform Party's mission
This did not happen by itself, nor was it predetermined. This immense work has been accomplished by everyone in Estonia working together. Contributions have come from every generation and every walk of life. Among the political parties, the Reform Party has played a key role in this success.
I am not speaking about the time spent in government but about the attitude we have brought into Estonian politics and the message we have consistently defended in all circumstances. It is this message that has driven Estonia's faster development compared to others who share our fate and given greater weight to Estonia's voice than our size or population might suggest.
Since the "Citizens' State Manifesto" ("Kodanike riigi manifest") written by the party's founder Siim Kallas, which remains relevant today, our most important contribution to building Estonia has been the focus on freedom. A firm belief that freedom brings success – to every individual, every family, every business, every local government and the state. It also extends to our neighbors and allies. The freer people are, the better it is for everyone.
The second enduring message of the Reform Party, which supports the ideal of freedom, is the steadfast assertion that Estonia belongs in the West. We must remain unwaveringly aligned with the West, in thought and action. We must contribute more than others, be greater than our boundaries and more influential than our numbers suggest. Estonia has achieved this and continues to do so.
The third contribution of the Reform Party is the demand that Estonia must always look boldly and confidently toward the future. We are building a better future for Estonia, shaping it to suit all of our people. We do not dream of turning back time to the 19th or 20th centuries with solutions that can no longer work.
The greatest possible freedom for everyone. A stronger Europe and NATO for everyone. A better future for all of us. This has been the essence of the Reform Party's mission. It is our contribution and our duty. It is our fundamental promise to the people of Estonia. We have always honored this promise, even in the most difficult times. This is what has brought Estonia success.
Tailwind
But let's be honest. We have benefited greatly from a strong tailwind. These have been good times. Democracies have been robust and Western economies strong. We have been fortunate to catch up with values-aligned, but wealthier, allies who have helped lead us to the top of the world. Most importantly, there has been peace. This has allowed people in Estonia to enjoy the sense that life's improvement was inevitable, that good things would happen effortlessly and inexorably.
Many of us feel, perhaps all of us do, that the constant tailwind has weakened. Next to us, there is a brutal and cynical war of conquest, one that our Ukrainian friends are heroically resisting with significant losses.
It is no secret that Vladimir Putin and his murderous regime's ambitions do not stop at Ukraine. It is also no secret that Europe's awakening to this reality has taken too long. We also know that NATO's unity will demand even greater effort from us and our allies in the near future.
But war is not the only concern troubling our people. Economic uncertainty, the declining global influence of Western states, major global crises amplified by a contradictory and often overly hostile information space – all of this creates unease and anxiety.
Matters are not helped by the fact that governments often fall short in swiftly addressing these crises. Budgets are in deficit, states are in debt, tax burdens are increasing, yet services are often being reduced. This characterizes many nations around us, even those wealthier than us. It seems as if more money is being spent, but less is received in return. It is no wonder many people feel stuck. It is no wonder that trust in governments, politicians and even other societal institutions is low.
The root of uncertainty
The solution, I believe, is in our hands. The reasons for lost confidence, frustration, disappointment, alienation and distrust have been sought everywhere. Some blame an elite that supposedly does not care for its people, others point to bad globalists, urbanites or scientists. To some, capitalists are at fault; to others, it's the socialists, high taxes or low taxes. In reality, the underlying issue is a lack of freedom.
The loss of self-confidence, the resignation, defeatism and sometimes even the complaining and cursing come from a feeling that one's voice does not matter, that no one is listening. A feeling that nothing depends on me, that I am powerless and insignificant amid growing crises. The sense that things are rapidly deteriorating, but there is nothing I can do, because I am supposedly unimportant.
Therefore, the solution cannot be to take away more decision-making power and responsibility from citizens and hand it over to the state. That is a dead-end – a spark to the flame. The solution is to grant more freedom, meaning power, but along with it, more responsibility, to people. People need to once again feel that their well-being is in their own hands. That they are the masters of their family, their standard of living and their property.
The state must act where it absolutely must. But when it does intervene, it must be efficient, strong and decisive. Elsewhere, we must understand that our standard of living, our success, is a collective creation, whose main author is and must be a free citizen, unburdened by unnecessary obstacles. This is the 21st-century state of free citizens. This is our goal and the only solution.
A 21st century state of free citizens
We best understand the idea of a 21st century state of free citizens when we think about how Estonia's defense truly works.
The Estonian state has a strong and professional Defense Forces – well-equipped and supported by strong allies. Since Russia's war of conquest in Ukraine began, we have sharply increased our defense spending and agreed on additional ammunition purchases. All of this is essential for defending Estonia and ensuring our independence. But the Defense Forces alone cannot protect Estonia.
Estonia cannot be defended without the Defense League. It is a voluntary organization of free citizens. Estonia cannot be defended without all the people who consider their own and their families' preparedness for crises – those who are strong and ready.
Estonia cannot be defended without Estonian businesses that keep our society functioning, keep the lights on and food on the table. It cannot be defended without local governments, without communities that support and notice everyone.
Estonia cannot be defended without the contributions of every individual. Without the collective investment in security, with everyone doing their part. Just as security is everyone's concern, every effort truly counts. The Defense Forces is there to lead Estonia's defense. But we are protected only when everyone plays their part – all of us, the entire society, from the ground up. That is what a 21st century state of free citizens is.
The same applies to other areas of life. The state can help, guide and shoulder the most complex challenges, but the success of society depends on the free actions of free citizens.
Health and pensions
Another good example is people's health. No state can afford to make everyone healthy if citizens do not do their part. The population is declining and fewer children are being born – not only in Estonia but throughout the developed world. The number of taxpayers is more likely to decrease than grow. The Health Insurance Fund's deficit continues to increase. Continuing on the current path would mean getting poorer service for higher costs.
We need free citizens to take better care of and greater responsibility for their own health. Only in true emergencies should the state step in to provide effective, modern and rapid care.
A third example is pensions. The dismantling of the second pension pillar, led by Isamaa, means that many Estonians have given up on taking responsibility for securing their own future and can now rely solely on the state.
Social spending in the budget is rising quickly, as is the number of pensioners. The state alone cannot provide a comparable pension to what free individuals could achieve by saving a portion of their income for retirement.
These are just a few examples of how a state built on free and responsible citizens is stronger, healthier and more prosperous. There is still much we can do to increase citizens' freedom across various fields.
More effective state
We therefore need to rethink the role of the state. The government's decision for a 10 percent cut in operating and administrative costs was an unavoidable step to improve the state budget situation and bring spending under control. However, this is just the first step in scaling back the state. We need to review different sectors to find where we can achieve more with less.
We will do this together with entrepreneurs, who have extensive experience and a better sense of how to make their businesses more efficient. Entrepreneurs see firsthand where the state is involved in activities that the private sector could handle better or where the public sector is simply wasteful.
The budget crisis that has developed and worsened over the years has left us with no choice, and we have had to make difficult tax decisions. Although the average tax burden in Europe is as high as 41 percent, ours is rising from a typical 34 percent to 36 percent. To ensure the security of all Estonians, we have decided to introduce a temporary defense tax.
Citizens and businesses are contributing to ensure Estonia's continued existence, so that we have an investment environment free from security fears and so young people can be confident about their future – confident enough to start families and raise children.
This higher tax burden must be temporary. A low tax burden and an efficient state focused solely on essential matters have been Estonia's competitive advantages and must remain so in the future. We must work to ensure that after 2028, corporate profits will no longer be taxed and income tax will apply starting from the first euro earned. To achieve this, we need to further reduce state budget expenditures and rapidly improve the economic environment to attract new companies and investments to Estonia, creating jobs and increasing tax revenue.
Competition can bring prices down
Rising prices present a major challenge, both in Europe and here at home. There are many objective reasons for price increases. Russia's war of conquest in Ukraine has driven up energy prices and made many previously affordable production inputs inaccessible. Sanctions, while necessary, have also led to price increases for many goods, especially here, close to Russia.
When trade wars erupt globally, they create new price pressures. We must think carefully about what we can do to curb price increases. State-imposed price controls, which are being seriously considered in neighboring countries, are certainly not the solution. The answer lies in freer markets and greater competition. This means deregulation, reducing state oversight and lessening the administrative burden on citizens. And it also means ensuring stronger competition.
Every regulation can act as a market barrier, especially for small businesses. We must reduce these requirements across various sectors – agriculture, hospitality and accommodation – to foster greater competition. Less administrative reporting will lower business costs and enable price reductions. Regulatory bodies responsible for ensuring competition must work more effectively. A 21st century state of free citizens trusts its people.
With the responsibility for their own lives must come greater freedom for citizens to shape their lives as they see fit – whether building structures, renovating homes, improving their neighborhoods, planning for local governance, starting and managing businesses, educating themselves or raising their children. In all these areas, there are many unnecessary barriers and regulations that can be removed.
Life will improve only when solutions are in the hands of citizens, not dictated by the state.
Finally
If a citizen no longer trusts themselves, if they feel that nothing depends on them and that their opinion does not matter, how can they trust their state? The only remedy is to gradually take power and responsibility into their own hands – for themselves, their family, their loved ones and their home. Simply put, for their entire life. There is no other cure but freedom.
And I am not talking about the right of the stronger and wealthier to do whatever they please. That is a very narrow concept of freedom. True freedom means recognizing that it is not the state's place to make people's fundamental life choices for them – how to live, how to manage their affairs, who to live with and whom to love.
Real freedom comes from recognizing that we must change with the times. We cannot go back to the previous century or even the one before that. Not even to the nostalgia of the 1990s.
The duty of the 30-year-old Reform Party is to ensure that our gaze remains fixed firmly and boldly on the future. Increasingly, the strength of the Western world depends on Estonia and our message – defending freedoms and facing the future honestly. For this reason, we need to build together a 21st century state of free citizens.
--
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Marcus Turovski