Employers to new government: economy and security are the right focus

The Confederation of Estonian Employers welcomes the new coalition’s plan to focus on economic development and security. Cooperation between the state and businesses will turn the economy from recession to growth, which will increase the competitiveness of the economic area.

Ain Hanschmidt, head of the Estonian Employers’ Confederation, supported the new coalition’s focus on improving the economic environment and strengthening security.

“Estonia’s main problems are low confidence and the long recession. Investing in security and demonstrating the growth of defence capabilities gives both local and foreign investors confidence to plan for the future. The economy is the sum of the work of entrepreneurs – if they invest and find new opportunities, the economy will start to grow,” explained Hanschmidt. “The coalition’s bold move to reverse the decision to tax profits will help curb price rises and provide certainty for tax revenues.”

Hando Sutter, CEO of the Confederation of Estonian Employers, stressed that the Estonian economy needs trust-based cooperation with the state to recover from crises and improve competitiveness. “Employers hope that the plans of the new coalition will be put in place soon and we are ready for close and constructive cooperation. As we represent an influential part of the Estonian economy, we have top expertise on a wide range of economic issues through our members. Entrepreneurs are ready to contribute with advice and strength to increase competitiveness and set targets,” said Sutter.

Employers believe that the state will have to make significant internal changes to the way it operates if it is to find extra money for protection. “We are satisfied with many public services, but their effectiveness has not received the attention it deserves,” Sutter stressed. For example, both education and health care need reform to ensure that learning matches the needs of the labour market and that healthy life expectancy increases, and that these services are affordable for society to maintain.

Public finances also need to be cleaned up, for example by freezing index-linked expenditure, so that the state can get its finances under control and thereby improve the fiscal environment.

Energy is also an important input to the economy and energy policy must ensure competitive electricity end prices in the region.

Also, as the economy recovers, the shortage of skilled workers will once again become the most pressing problem. Tackling this will require both modernising the rules for recruiting foreign workers and making labour law more flexible.

In addition, Estonian and EU businesses need a decisive reduction in administrative burdens and red tape. In addition, Estonian regulations must not be stricter than those in the EU and must not impose restrictions that undermine competitiveness.

You can read more about the Employers’ proposals to boost the competitiveness of the economy here.