Coalition negotiations between Reform and Eesti 200 are still underway and the finalized agreement is expected at the end of May. Sunday's "Aktuaalne kaamera" spoke to politicians about the progress of the discussions. Security is the document's foundation.

Prime Minister Kristen Michal (Reform) highlights the increase in defense spending and the decision not to raise taxes.

"Last week, the government made an unprecedented decision to allocate 5.4 percent for defense investments. The second point is tax reductions, we are awaiting the draft from the Ministry of Finance, which has also been agreed upon, namely, the abolition of corporate income tax. Also, the elimination of income tax from the first euro earned, which will reduce the personal income tax burden. And now that the Social Democrats have left, the elimination of the tax hump will also not be questioned," he told "Aktuaalne kaamera."

Defense investments will be funded by loans. A supplementary budget may also be needed but it hinges on what can be purchased this year.

"For us, the opportunity to invest in defense more quickly and, because of that, temporarily enter into a larger deficit is very necessary. Our debt burden in Europe is the smallest, meaning that we are taking additional loans to buy weapons and other necessary items faster. So, we are taking advantage of both the joint loan opportunities and the possibility of running a larger deficit in the coming years," Michal said.

Marek Reinaas, a member of Eesti 200's Riigikogu faction, said there are no big ideological differences between the parties. But the cracks start to show when it comes to long-term planning.

"While the Reform Party is primarily trying to create an agreement for the next two years until the next elections, Eesti 200 is certain that we must start several reforms that will most likely take longer than two years, longer than 10 years," he told the show.

"We want to talk about pensions, we want to talk about education, and we also want to talk about, for example, cyber defense, which so far has not been a topic people have wanted to open, but where significant changes and investments are certainly needed that extend beyond the next two years," Reinaas added.

Urmas Reinsalu, chairman of the opposition party Isamaa, believes the government's actions and words do not match.

He said administrative costs have risen rather than fallen, as promised, and tax hikes continue indirectly.

"They should learn from the Finns — masks off, taxes off. Finland is reducing taxes, while we have instead chosen tax hikes. And that has been the wrong decision," Reinsalu said.

Negotiations will continue on Monday, when ministers will present plans for their respective fields.

"Monday will be the first time that we sit together in a coalition program working group and review the different fields and how they are balanced with each other," said the prime minister.

"If we want to invest in our security, and at the same time the European Union has given us the opportunity to loosen budget rules, then I think we must use this opportunity as quickly as possible," added Reinaas.

Michal admitted that the need for a supplementary budget mainly depends on defense.

"And with defense, the main question is what they are considering, what investments can be brought into this year, and whether it helps to enhance our defense capability, meaning are there things that can or must be done this year," said the prime minister.

Reinsalu again pointed to the government's broken promises.

"The government had previously promised to reduce administrative costs in 2025, but that has turned out to be false; in fact, administrative costs are increasing this year by 155 million euros. And it would make sense to reduce administrative costs, which would also help reduce inflation. Secondly, indirect tax increases for the coming months should be scrapped without delay," he said.

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