Eesti 200 chair to PM: The country should not be run by tweeting

Chair of coalition party Eesti 200 Kristina Kallas said she only learned of Prime Minister Kristen Michal's (Reform) plan to raise defense spending to five percent of GDP from journalists. Minister of the Interior and SDE chair Lauri Läänemets is in favor of the defense spending rise.
Speaking on Vikeraadio show "Stuudios on peaminister," Prime Minister Kristen Michal (Reform) said the country should target allocating five percent of GDP for defense spending. Shortly after the show, Michal posted about the same topic on social media.
Eesti 200 Chair Kristina Kallas, whose party is also part of the governing coalition, said she learned about the plan from journalists.
"I found out from journalists when they called me and asked me this question," Kallas said. "In my view, however, this is not the way to run a country, where coalition partners read about these kinds of huge, fundamental proposals in the press, or not even in the press, but have to answer journalists' questions on topics that nobody has actually discussed anywhere beforehand."
Kallas stressed that defense spending is such an important issue that it ought to be decided by the coalition as a whole. "This is not how a country is run, by tweeting, posting or just saying whatever comes to mind. Decisions like this have to be made according to a very well-thought-out plan."
Kallas said she did not know exactly what Michal's plan was.
"I assume the plan is to agree a funding scheme at EU level as opposed to NATO's East Atlantic defense plans. Estonia is certainly not in a position art present to meet these defense plans alone. Certainly not with its own state budgetary resources," Kallas said.
Kallas noted that borrowing would require a pan-European agreement and a revision or temporary relaxation of the Maastricht criteria. "The borrowing capacity of a large proportion of the countries subject to the current deficit rules is full. The defense capabilities of all the countries on NATO's eastern flank must be increased. That is clear. But when it comes to national governance, these types of decisions still need to be made on the basis of thorough analyses and agreements," Kallas added.
Kallas said she is now waiting for the prime minister to explain how he plans to bring defense spending up to five percent of GDP.
"The state's budgetary resources do not allow us to do that at present," Kallas said. "By 2026, we will have defense spending at almost four percent of GDP. It is possible to do that, and I hope that was the prime minister's plan – that we will increase defense spending and be able to increase Estonia's defensive capabilities thanks to the pan-European agreement at EU level on defense bonds. This is a potentially a €100 billion deal at EU level."
Kallas noted that borrowing would require a pan-European agreement and a revision or temporary relaxation of the Maastricht criteria. "The borrowing capacity of a large proportion of the countries subject to the current deficit rules is full. The defense capabilities of all the countries on NATO's eastern flank must be increased. That is clear. But when it comes to national governance, these types of decisions still need to be made on the basis of thorough analyses and agreements," Kallas added.
Kallas said she is now waiting for the prime minister to explain how he plans to bring defense spending up to five percent of GDP.
"The state's budgetary resources do not allow us to do that at present," Kallas said. "By 2026, we will have defense spending at almost four percent of GDP. It is possible to do that, and I hope that was the prime minister's plan – that we will increase defense spending and be able to increase Estonia's defensive capabilities thanks to the pan-European agreement at EU level on defense bonds. This is a potentially a €100 billion deal at EU level."
Läänemets: SDE support increased defense spending
Social Democratic Party (SDE) Chair and Minister of the Interior Lauri Läänemets said the government has been discussing an increase in defense spending and the SDE supports it. According to Läänemets, the cost of an increase would be an additional €600-700 million a year.
"Indeed, we have discussed this issue inside the government. We have discussed the issue in the light of the fact that a final assessment will be made in the spring regarding how much more Estonia needs to contribute to its military capabilities in order to guarantee these NATO agreements," Läänemets said.
He also said that last fall, the SDE already adopted the view that increasing defense spending is important autumn that. "Obviously, in today's security situation, there is no other way," Läänemets added.
The interior minister pointed out that the additional cost of an increase would be €600-700 million per year.
"First of all, it means that the temporarily imposed security tax, at least that amount, that tax base has to remain and then something has to added to it," Läänemets said. He also explained that it is not possible to cut public services to that extent.
"The solution is that we need to broaden the tax base and bring in the part where the richer part of society also contributes more to Estonia's security. The other option would be to change the way we think about the EU budget rules follow the logic whereby we no longer include defense expenditure in this framework and instead demand these changes from the European Commission," Läänemets said.
---
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Valner Väino, Michael Cole
Source: Interviewer Indrek Kiisler