Currently, there are fewer jobs than workers in the regions, and salaries vary drastically between counties. For example, the average salary in Valga County is €500 lower than in Harju County. However, prices in stores remain the same, and the cost of living has increased everywhere.

A map published by Statistics Estonia, which operates under the Ministry of Finance, clearly illustrates that the contribution of most counties to Estonia's GDP is minimal. GDP not only reflects the value added by goods and services in a region but also indicates the economy's health and standard of living. This map is yet another alarm bell signaling an imbalance.

The state cannot become shaped solely by major urban centers. According to Statistics Estonia, Hiiumaa's contribution to GDP is closer to zero than to one. However, Hiiumaa is far from insignificant; it is critically important. The issue is not that entrepreneurship in Hiiumaa isn't developing, but rather that conditions there differ significantly from those in larger centers.

It is true that the state does not create jobs but instead creates conditions. Unfortunately, this creation of conditions has not yet sufficiently reached Hiiumaa or other peripheral areas. At present, it is up to the state to decide how and where resources are allocated. The fact remains that 90 percent of the entrepreneurial measures from the previous period were directed to the "golden circles" (growth regions), rather than to Hiiumaa or Southeast Estonia, which are equally vital to our economy, culture and security.

During the previous EU planning period, €3.7 billion in support was distributed in Estonia. In the current period, over €3.3 billion is earmarked, of which approximately €1.4 billion is directly linked to business development.

It is impossible to ignore the fact that the use of EU funds has a significant impact on business and economic development. Unfortunately, in the previous period, the majority of these funds were directed to growth regions, thereby exacerbating regional disparities rather than alleviating them.

Now, the government has agreed that at least 40 percent of the €1.4 billion must flow outside of Tallinn and Tartu growth regions. The key question is who will decide where, how and by whom these funds are allocated, and how regions and counties will be supported in utilizing these resources. This is a critical factor in fostering balanced development in Estonia. More decision-making must be decentralized from Tallinn, location-based solutions must be found and local initiatives must be implemented.

The position of a special envoy for Ida-Viru County, created more than a year ago, has proven to be a positive experience, clearly demonstrating the importance of connections between local governments and businesses. Thanks to this role, numerous significant projects have been realized and new jobs continue to be created.

When the special envoy began their work in Ida-Viru County, only about 20 percent of the Just Transition Fund program's budget was covered by applications. However, with the program's deadline approaching, cooperation between the envoy and government agencies resulted in €350 million being implemented, leading to the creation of over 1,000 jobs. The government expected the special envoy to implement the measures within a very short timeframe. This was successfully achieved.

We must also advocate for the interests of other regions. I agree with Jürgen Ligi that officials do not directly create jobs but instead foster enabling environments. This is precisely why we are involving regional leaders – to ensure there is someone who brings together communities, resources, businesses and government agencies with the specific interests of the region in mind. They would create the necessary connections, just as was done in Ida-Viru County. They could help develop suitable measures and encourage ministries to collaborate on critical development projects. Their role would involve consolidating the positions of local governments and businesses when needed and urging various ministries to work locally and in cooperation.

One of the tasks of regional leaders is to implement or draft development agreements for fostering entrepreneurship, depending on the specific region. For approximately two years, regional councils have been operating in Central and Southern Estonia, and key directions for regional economic revitalization have been agreed upon. It is crucial that ministries take these regional directions into account when shaping their policies and activities. The development agreements also set clear goals for increasing GDP contributions.

Speaking of specific jobs, as one of two ministries undergoing workforce reductions, our goal is to strengthen regional capacity despite these challenges.

All ministries are currently making decisions within the constraints of their budgets, using the funds allocated to them. For the Social Democrats, it is important to ensure that state budget funds are used equitably, taking into account the needs of different regions. There are serious examples from various fields where cuts have disproportionately affected local levels, even though the primary resources remain concentrated in urban centers.

The issue is not how many people we serve, but where sustainable jobs are located. By eliminating state services and jobs in smaller regions, the state itself contributes to the growth of the two major urban centers, further deepening regional inequality. Our collective efforts should instead focus on ensuring that all of Estonia thrives. There is simply no other way, regardless of political ideology.

The Ministry of Regional Affairs has proposed appointing regional representatives across Estonia to improve communication between central government and local areas, building on the success of the current Ida-Viru representative. These representatives would focus on economic development, ensuring the availability and effectiveness of support measures and addressing any implementation challenges, as explained by the Ministry of Regional Affairs and Agriculture. Four regional managers are planned for East, Central, South and West Estonia, and their roles will include providing timely updates to the government on regional economic conditions.

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