Estonian Finance Minister: fiscal balance requires tax hikes

The Ministry of Finance finds that sustainable state finances in the long term require taking the Estonian state budget from red to black in the coming years. The ministry suggests that a deficit of EUR 750 million needs to be covered though cuts and tax hikes, reports Estonia’s public broadcaster ERR.

The Ministry of Finance provided sides to Estonia’s ongoing coalition negotiations (Reform, Eesti 200, SDE) with an overview of the fiscal situation on Wednesday. The overview was made available to the press on Thursday and holds little in the way of encouragement.