OREANDA-NEWS. June 06, 2014. The recommendations of the European Commission support the Government’s priorities, such as a balanced budget and workforce cost reduction. They are also seen as a support for the Government’s initiated reforms in the field of working capacity and education, as well as in improving the service quality at local level.

Prime Minister Taavi Roivas noted that Estonia and the European Commission share similar views on conservative budget policy.

“Estonia’s budget policy is among the most conservative ones in the European Union. Regarding our budget policy, we have voluntarily set ourselves strict standards above the average and we intend to follow them,” Roivas said.

The Prime Minister stated that the aim of the new budget policy law is to keep structural budget position of the Estonian government sector at least balanced.

The Prime Minister also found it encouraging that the tax income of state budget in the period of first five months has exceeded the estimate by 0.3 % of the GDP.

The Prime Minister noted that the discussions regarding the next year’s state budget begin in early autumn and the Government is ready to act in order to improve the position of budget, if needed. “Therefore, we need to carefully study the situation of economy and react, if necessary,” Roivas added.

In Estonia, the recommendations of the European Commission coincide with the reforms already set in action. A good example at this point is the embodiment of the education reform, the working capacity reform and the increase of efficient energy usage in dwelling and transport sector.

The Commission also acknowledges the improved state of labour market and recognises the steps already taken in this area. As an example, no references to long-term unemployed young people were made this year. Also, references concerning waste management and setting taxes on vehicles could be found.

The Commission made recommendations to Estonia in five categories: the continuation of conservative budget policy, more specific identification of social benefits and the stimulation of work environment, more efficient integration between education and the labour market needs, increasing efficient energy usage in the areas of dwelling and transport and improving the quality of services at local level.