PM encourages businesses to continue investing in Estonia

TALLINN - In his presentation at the "Äriplaan 2025" (Business Plan 2025) economic conference in Tallinn on Wednesday, Estonian Prime Minister Kristen Michal encouraged businesses to continue investing in Estonia and strengthening the country's economy by contributing to national security.

The premier stressed that the prerequisite for the growth of business and the economy is a sense of trust and confidence in one's own country, and assured that the government's goal is to maintain this confidence. According to the head of government, Estonia's security is a matter of common concern for everyone, and everyone's contribution, from bankers to bakers, is very important. 

"The government is striving to reduce the state budget deficit. We will cut public sector spending by nearly a billion euros, but in order to find resources for strengthening security and thereby investing in the economy during difficult times, it is not enough to just cut state expenses. In order to buy the necessary munitions and develop other important capabilities, tax changes in the form of a temporary security tax are also essential," he said. 

Michal said the past few years have been tough, but several forecasts promise that economic growth is about to resume.

"The goal of the government is to do everything possible to create the best possible conditions for businesses in the difficult situation, both to invest and to provide everyday services and products. We are working to make the state more efficient, administration easier and faster -- we will make the rules and requirements more flexible. We will review and make the necessary amendments to the Public Procurement Act and support large investments with a specific support measure. We will also speed up the use of money from various European Union funds, which would help to keep large projects in Estonia and bring new ones here," the premier said.

According to Michal, given the current security situation, the defense industry represents new potential for economic growth.

"Defense industry is an important part of national defense and security, and the Estonian economy, too, will benefit from defense investments in the future. Defense industry companies have set a goal to grow the defense industry to one billion euros by 2030. On the part of the state, we will contribute to this goal: we will accelerate the development of the defense industrial park in order to ensure suitable conditions for businesses for product development, and we will launch a defense investment fund with a total volume of one billion euros. We also support cooperation between Estonian and Ukrainian companies," he added.

The annual "Äriplaan" conference, an event that brings together entrepreneurs and industry experts, first took place 26 years ago.