Right-wingers, a young political party that failed to win any seats in parliament in the March polls, has sent an open letter to the Estonian government and parliament on 5 September, calling for the implementation of political measures to bring the country’s economy out of the deepest recession in the euro area. The party believes that the current leaders of the Estonian state have not taken the deterioration of the country’s economic situation and competitiveness seriously enough, which is why the party is proposing its own economic growth plan.
The Estonian economy has been the steepest in Europe, with the economic confidence index falling to the level of the peak of the 2009 economic crisis and the period of COVID-related restrictions. The production of industrial enterprises decreased by 15% on year, exports decreased by 15%, and imports by 13% in current prices. Companies have lost out in competitiveness, the number of bankruptcies is on the rise, and people are losing their jobs. If the country continues in the same way, Estonia’s debt burden will increase from €8 billion to €16 billion, or nearly 33 per cent of the GDP, in four years, and the fiscal deficit will expand to €1.7-€1.9 billion, or almost four per cent of the GDP, in the coming years. Bridging the budget gap and covering fixed costs with borrowings will further speed up inflation.
The party’s economic growth plan for Estonia consists of eight chapters: a simple and competitive tax system, quick handling of matters and less bureaucracy-related costs, promoting large-scale investments and attracting them to Estonia, innovation and internationalisation, the availability and affordability of capital, opening the labour market to international talent, just and fair competition, and being a driving force behind the development of technology. By addressing these issues, the party aims to make Estonia one of the most prosperous nations in the world within a generation.