Coalition agreement between the Estonian Reform Party and Eesti 200

National defence and security

• We are fully committed to ensuring the freedom and independence of Estonia.
• We will increase defence expenditure to 5% of the GDP. We will strengthen all Estonian military capabilities in accordance with the defence plans of NATO and the updated national defence plan.
• We will give priority to developing the domestic defence industry as part of the defence capabilities of Estonia. We will bring investments to the Estonian defence sector and launch domestic arms and ammunition production.
• We will support Ukraine until its victory and a lasting and fair peace. We will never recognise the breach of the territorial integrity of Ukraine as a result of aggression.
• NATO is the basis of our security. Europe and our allies must increase their independent defence capabilities exponentially.
• We will build secure borders, carry out an extensive programme of security investments, and strengthen our intelligence and counter-intelligence.
• Every Estonian will be given an opportunity to complete a voluntary crisis-preparedness training on how to act in case of a natural disaster, an attack, or a health crisis. The security of Estonia begins with us, including the activities and readiness of each and every individual.
• We will defend Estonian information space in cooperation with the civil society and media. We support the fight against misinformation and disinformation campaigns.
• We will protect the resilience of the Estonian digital society through ensuring the cyber security of services and guaranteeing their availability in any situation.
• We will ensure the survival of the rule of law and keep the condemnation of and punishment for communist and imperialist crimes in international focus.

Taxes

• We will return to a business-friendly, uniform, and straightforward tax system in Estonia.
• We will abolish the tax on corporate profit.
• We will reduce the income tax burden on private individuals by abolishing taxation starting from the first euro.
• We will increase the threshold for the exemption from income tax to 700 euros and lose the ‘tax hump’.
• We will establish a local returns instrument for stimulating economic growth, which means that people will be able to earn dividends from regional development.

Economy

• Our objective is to develop an economy with a higher added value and take Estonia to the top 10 of global innovation leaders. We will support Estonian companies in developing science-based products and services through respective programmes and foster the employment of researchers by companies.
• In Estonian vocational and applied education, we will take into account the needs of companies for employees who would offer more added value. We will make it possible for companies to hire highly qualified skilled workers through the necessary exceptions.
• In the energy sector, we aim to ensure the security of supply for our nation and a competitive edge for our economy. We will initiate a designated spatial plan for a nuclear power plant and declare a reverse auction for onshore wind parks.
• We will expedite the approval process of plans and issuing activity licences as well as update the Planning Act. We will establish priority development areas for building new industrial complexes where there is no need to spend time on additional authorisation procedures and research.
• We will improve the availability of investment capital through major investment measures and national export guarantees.
• We will privatise state-owned enterprises that do not have a strategic importance for Estonia.
• We will improve the image of Estonia and support export through international cultural and sporting events. We will turn culture and sports into a domestic economic sector through upgrading its current funding model.
• We will train AI solutions for Estonia which will help to increase the productivity and international competitive edge of Estonian companies as well as improve the efficiency of our governance.

Efficient bureaucracy

• We will simplify and accelerate Estonian bureaucracy. We will abolish useless regulations and reports. We will turn data submission into an automatic and one-off process. For the purposes of efficiency, we will merge government agencies and authorities. This way, we can reduce the number of employees and the expenses of government agencies by a fifth.
• We will reshape state services to be simple, secure, and correspond to the needs of people.
• We will establish a council of entrepreneurs by the Government Office, which is going to present proposals for eliminating excessive bureaucracy.
• We will transpose EU law in the best manner for Estonia and submit proposals to the EU for amending unsuitable norms, including a proposal to postpone the submission of sustainability reports and to make them voluntary.
• We will establish a single comprehensive national IT office and allocate as many of the support services to the private sector as possible.