The Social Democrats (SDE) presented three proposals to the coalition council. At this meeting, it will be determined whether the Reform Party, SDE, and Eesti 200 can continue together in the government. SDE chairman Lauri Läänemets said that these ideas were already discussed in February with Prime Minister Kaja Kallas.
SDE's first proposal is to create a billion-euro economic package for the next four years. To this end, they want to form a working group that includes representatives from the Chamber of Commerce and Industry, the labor market, entrepreneurship, and the state. The task of the working group is to develop a plan to increase state investments. For example, it is proposed to build better roads and reduce bureaucracy.
The second proposal is to review unimplemented taxes. SDE wants to reduce the VAT on food and eliminate the corporate income tax. This will help people and businesses.
Thirdly, SDE wants to create a new, stronger national defense plan. This includes purchasing more ammunition and increasing the number of mobilizable people. Defense spending would be increased to five percent of GDP.
Läänemets believes that these proposals are necessary and realistic. They will help Estonia's economy and security. It will also restore people's trust in the government. However, the Reform Party is critical of SDE and said that they will choose Eesti 200 for further action if SDE does not change its behavior.