As they prepare for the next elections, both EKRE and Parempoolsed are promising tax cuts. The latter would reduce VAT and income tax, while EKRE would also abolish the car tax.
Political parties are gradually preparing for the upcoming elections, and on Saturday the Conservative People’s Party of Estonia (EKRE) gathered for its party congress. Martin Helme was re-elected party leader, while Mart Helme was confirmed as the party’s presidential candidate. The party is continuing along its familiar course, promising economic growth by improving people’s financial well-being.
“We need to significantly reduce taxes, both consumption taxes — excise duties and value-added tax. We will definitely abolish the car tax along with the registration fee, but most importantly, electricity and fuel must become affordable. Then the economy will start growing as well,” Martin Helme said.
The Parempoolsed (Right-wingers) party also presented the principles of its election platform at a council meeting on Saturday. Party leader Lavly Perling said their goal is to bring the state budget into balance, but that value-added tax and income tax must first be reduced.
“Reducing VAT to 20 percent and income tax to 18 percent. Those are very clear rates that we have set out in our program. At the moment, reducing VAT gradually by one percentage point per year is under discussion,” Perling said.
Although this would reduce state revenues and move a balanced budget further out of reach, Parempoolsed’s solution lies in reforms that would end universal benefits and freeze public spending, including pensions.
“We are talking about freezing public-sector spending as a whole. We are talking about moving away from the welfare-state model, which requires very substantial reforms in the social welfare system, the education system and the healthcare system. Again, greater participation by individuals, greater freedom for people and allowing more private-sector involvement in these markets. The fact is that with an aging and shrinking population, if we do not make these major changes, politicians are misleading people by claiming there is money somewhere that can continually be added to keep providing these services. There isn’t,” Perling said.
“The state is about more than just a balanced budget. One issue is the birth rate. If we cannot increase the number of births, then everything else we do, including pursuing a balanced budget, is pointless,” Helme said.
Urmas Jaagant, a political journalist at Eesti Ekspress, said voters are generally more concerned about their own circumstances than about balancing the state budget. Both parties are disadvantaged by the fact that they have relatively few well-known politicians.
“For EKRE, this became a bigger problem when a large number of people left the party. But it is still represented in the Riigikogu and there are several people there who attract at least some attention. I think the situation is much more difficult for Parempoolsed,” Jaagant said.
According to polling company Emor, EKRE’s support stood at 13.9 percent in May, while non-parliamentary Parempoolsed were supported by 8.5 percent of respondents.
“EKRE’s problem is why voters should choose them when parties such as Isamaa or the Center Party already exist. Parempoolsed may have it somewhat easier in that it appears a certain number of people have decided they no longer want to vote for the Reform Party,” Jaagant said.
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