Representing Eesti 200 in Friday's talks were Kristina Kallas and Aleksei Jašin, while the Reform Party was represented by Margit Sutrop and former minister of education and current Reform Party parliamentary group deputy chair Liina Kersna.

"Today, we went through all levels of education, and representatives from Eesti 200 and the Reform Party presented their views on what could be done at different levels, what the direction should be taken, and we agreed to continue discussions in more detail next week," Kersna said.

She noted that a major issue remains the sustainability of higher education funding at the agreed-upon level in 2027.

"The increase in higher education funding is currently coming to a halt, and we need to find solutions to secure more funding for higher education," the former minister acknowledged. "The general consensus was that [a student's] first degree — at the bachelor's, master's and doctoral level — should remain free, but this does not solve our financial concerns."

Subsequent degrees could be subject to tuition fees, she added.

"One possible solution — although it doesn't solve the entire equation — would be to encourage corporate donations to universities," Kersna said.

"Currently, companies contribute around €20 million annually, but they are required to pay income tax on these donations," she explained. "For example, if a company donates €10,000 to a university, it has to pay more than €3,000 in taxes on top of that. This creates a contradiction — as the state still profits even when a company is taking on what is essentially a state responsibility by donating to a university. We'll certainly continue discussing this matter."

Kersna also acknowledged that there are differing opinions within the Reform Party regarding higher education and tuition fees.

"For instance, one option would be to introduce tuition fees in higher education at a rate comparable to early childhood education — 10 percent of the minimum wage, which is around €80-90," she described. "Over seven years, this could generate an additional €30-40 million for higher education. However, this is not a large sum, and this kind of system would create a significant bureaucratic burden for universities. It would also require a reform of the student loan and grant system."

Kersna added that the coalition has already agreed to raise the student loan limit to €6,000, eliminate the cosigner requirement as well as extend the repayment period.

Some exact figures up to state budget discussions

Regarding research, Friday's negotiators agreed on the need to reduce bureaucracy and the reliance on project-based funding.

"Within the 1 percent GDP allocated to research funding, we will analyze and potentially revise the agreed-upon distribution," Kersna noted.

"Currently, 40 percent is allocated to the Ministry of Education and Research, 40 percent to the Ministry of Economic Affairs and Communications and 20 percent to sectoral research funding," she continued. "We will likely discuss redistributing this sectoral research funding because within the Ministry of Social Affairs, for example, 30 percent of this funding goes toward administrative costs. We want to reduce bureaucracy and administrative expenses."

The negotiators also agreed that the new government would not alter the transition plan to Estonian-language education, and would also maintain current funding levels for this initiative.

"We also discussed the state's responsibility in providing secondary education," the former education minister said. "Currently, the education development plan has long stipulated that post-primary general education should be the state's responsibility by 2035. We believe this should proceed accordingly, but discussions will continue on how and in what stages this transition should take place."

The negotiators also discussed that it really is not reasonable for teacher salary negotiations to take place again every single year.

"We should move toward an approach where the government sets a minimum salary increase for teachers and a growth rate for the differentiation fund for at least two years," Kersna noted. "We hope this will be achievable."

According to Kersna, the participants in Friday's negotiations agreed that the differentiation fund for teacher salaries should be increased, as this would give school leaders more flexibility in distributing funds and implementing an internal career model for teachers.

"However, the exact figures — how much the minimum salary can be raised and how much the differentiation fund can be increased — will be determined in state budget discussions," she added.

Next week, negotiators will meet with various interest groups. The Reform Party and Eesti 200's final coalition agreement is expected to be completed by early May.

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