Isamaa leader targets major policy shift after 2027 elections

Isamaa chair Urmas Reinsalu says that meaningful policy change in Estonia must wait until after the Riigikogu elections, criticizing the government's handling of state finances and calling economic growth the party's central goal.
The government has failed in managing the state's finances, and therefore Isamaa's main task is to get the economy growing again, Reinsalu said.
He added that the situation is difficult in terms of the state's financial capacity and that government operating costs should have been cut more.
"I see that the rhetoric the prime minister has used has failed. I understand the frustration of teachers, police officers and rescue workers when they look at the numbers: the salaries of central administration officials at the Climate Ministry will rise by 16 percent next year," Reinsalu said.
When asked by the ERR program host how much the minimum salary for teachers would have increased under an Isamaa government, Reinsalu did not answer.
"Isamaa's message is that our first task is to fix budget policy, and second, to invest in economic growth — we can distribute, within our means, the money we actually earn. I understand teachers' frustration over the current three percent, because the government has not been able to fulfill its promises. But clearly, the dialogue with teachers, which has now broken down, must be restored. On that basis, they must be given confidence, and ministry administrative resources must be reallocated to inject positive energy into our teachers," the Isamaa chair said.
Reinsalu also did not answer how much cheaper diesel fuel would be under an Isamaa government, but in his view the excise duty should be temporarily lowered to the minimum level.
"Our task must be to avoid the upcoming diesel and gasoline price shock. Unfortunately, the government has been unable to conduct substantive negotiations at the European level regarding the entry into force of the ETS 2 system. It has been agreed at the European level, the government agreed to it, and this means that on 1 January 2028 — if we do not show a vital negotiating position — fuel companies say a 50‑cent price increase is ahead. In addition, on 1 May 2027 we face a double excise increase, which the government has planned into the 2027 budget," Reinsalu said.
According to Reinsalu, additional pressure on fuel prices must be avoided, and it would be reasonable to lower the regulatory price component of fuels in the coming months.
When asked where Isamaa would find money to support people and avoid tax increases, Reinsalu did not answer directly. However, he said it is important for the next government to examine what has happened under the Reform Party's leadership.
"Flailing around with tax increases and confusion has significantly hindered the volume of our economy. Our task in finding money is economic growth. The fact that the government forecasts essentially two percent economic growth for the next four years, based on subsidizing with borrowed money, is not an adequate ambition. The potential for real economic growth is five percent," Reinsalu said.
The economy has been suppressed in recent years by erratic policy, and if in 2027 the economy were two billion euros larger, the budget deficit would be 2.5 percent instead of four, he noted.
"We must understand and avoid the mistake made by the Reform Party's political agenda. With the claim that there is no money, they began to 'fix' the state's finances. That was the first thesis, for which taxes were raised. The result was the suppression of the economy, and therefore less tax revenue was collected. We must learn from this history for the future. When we talk about lowering tax rates, they must be targeted so that they serve the interests of the economy. If the government sits still and does nothing, and we face additional inflationary pressure — general inflation rises 0.6 percent if the gas price rises 10 percent — we face a new inflation spiral, which paradoxically brings additional costs to the state budget, which is not separate from inflationary pressure," the politician said.
One of the disputes in the budget debate concerns how long other sectors can withstand the high level of defense spending. According to Reinsalu, this must be a long‑term effort, and therefore defense industry must be supported more so that defense spending becomes defense income.
"Isamaa's goal is to turn a new page in the spring of 2027. In the state's financial policy choices, our central keyword is economic growth. The most important task is to empower creative potential across sectors, because if we do not have economic growth, we do not actually have revenue to redistribute. Secondly, I acknowledge that the situation is extremely difficult financially. The first thing we must do is restore clarity in the management of the state budget," Reinsalu said.
The Isamaa chair also said that in his view the budget presented by the coalition will most likely be adopted, because the government has probably made some kind of agreement with the Social Democrats.
"It can be assumed that it will be adopted. But this budget must certainly be corrected, and if Estonian citizens consider change necessary, it will happen after the 2027 elections," Reinsalu said.
"The reality is that in the near future a vote of no confidence awaits Prime Minister Michal due to the political choices his government has made. The Social Democrats have declared that they support this government. That is a political choice — they take on shared responsibility and must bear that responsibility," Reinsalu said.
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Editor: Johanna Alvin, Argo Ideon
Source: ERR interview by Mirko Ojakivi












