SDE leader: Coalition's collapse would be the end of constitutional amendment

Social Democratic Party (SDE) leader Lauri Läänemets acknowledged that while the party wishes to remain in the government, the actions of the Reform Party indicate that this is unlikely. According to SDE's leader, the prime minister has not found time to meet with him face-to-face in the past day.
"It rather looks like the Reform Party is indeed trying to salvage its ratings and, in doing so, is attempting to blame the Social Democrats for all of Estonia's problems, hoping that this will somehow improve the situation," Läänemets described the coalition's state on Monday morning.
According to the Social Democrats' chair, he initiated discussions with Prime Minister Kristen Michal (Reform) about the government's situation as early as January 21. "I expressed my opinion that we should find new solutions, considering the global situation, including developments in the United States in terms of both security and the economy."
Läänemets said that at the time, he discussed with the prime minister the same proposals that the party made public on Sunday.
"We'll see where we end up with these matters. I would hope that the Reform Party and Kristen Michal still want to offer Estonia a sense of security, but I must say that if things go another way, then there's nothing to be done. Betrayal seems easy if it comes to that," Läänemets said. However, when asked by a journalist, he clarified that he does not consider it to be betrayal, as he has discussed these issues with the prime minister in a relationship of trust.
"Personally, at the beginning of the year, I went to the prime minister and said that we need to take action on the economy. Now, to turn around and say that everything is stalled because of the Social Democrats — when we have been discussing these matters with the prime minister for a month and a half and had agreed that decisions could be made around March 10 — well, what is that, then? That would still be a stab in the back," Läänemets said.
Läänemets returned from vacation on Sunday and noted that he had already had one phone conversation with the prime minister before that. According to the Social Democrats' leader, he also wished to meet with Michal in person, as the coalition crisis has not been discussed face-to-face among party leaders, but the prime minister has not found time for such a meeting. "These could be certain signs as well, but let's still leave Kristen Michal the opportunity," he added.
When asked how he felt about his conversation with Michal, Läänemets replied that discussing such matters over the phone is usually not the same as a face-to-face meeting.
"We will see soon enough. The timing is indeed concerning. Most likely, this also means that the constitutional amendment (to revoke the local elections voting rights of Russian and Belarusian citizens and possibly stateless persons — ed.) will now fail. And that, in fact, is Kristen Michal's decision. Until now, we had a coalition compromise. But if the coalition no longer exists in its current form, then there is no constitutional compromise either. So, if Kristen Michal makes that decision today, he will also effectively bring down the constitutional amendment in the interests of his own party," Läänemets stated.
A journalist asked why the constitutional amendment would fail, given that the necessary votes would only be lacking if the Social Democrats decided to block the vote as a faction. Several Social Democrats have also said that constitutional changes are necessary. Läänemets emphasized that a compromise had been made within the coalition. "We have made this clear to the Reform Party; they have known this all along."
Coalition partners have also accused the Social Democrats of stalling, for example, the draft Competition Act. "The Competition Act has already been sent to the Riigikogu by the government. This is very much in line with former Prime Minister Kaja Kallas' strong vision and is currently in parliament. It is part of the coalition agreement and we have adhered to it — we could vote on it as soon as tomorrow. So far, the Ministry of Justice (run by Eesti 200's Liisa Pakosta — ed.) has not been able to put out a single legally correct piece of draft legislation," Läänemets stated.
However, Läänemets criticized the fact that Eesti 200's vision of the law serves the interests of a small group of business owners. "In general, businesses should want competition to be fair and free. The new proposals that have been put forward do not allow for this in their current form."
The Social Democrats are willing to compromise by abandoning their plan to introduce corporate income tax. According to the party's leader, they are prepared to do so in exchange for lowering the VAT on food products. "Lowering the VAT on food products would leave €200 million in people's pockets. That money would go back into the economy — 50 percent of Estonia's GDP comes from domestic consumption. This would stimulate the economy much more quickly than road construction or other measures that take much longer. It is an economically logical proposal that benefits both businesses and Estonian families."
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Editor: Marcus Turovski, Barbara Oja