Estonia

August 2005 | Risk Summary

The government has already delivered on several of its family-friendly fiscal pledges after a few months in office. However, there appears to be less unity over the proposed use of environmental taxes as a way to both increase budget revenue and promote sustainable development. Green taxes have been championed by the People's Union, members of which are currently serving as the ministers of finance and environment. However, economic affairs minister Edgar Savisaar of the Centre Party is reported to be against such measures because they could undermine the competitiveness of local firms. Coalition partners are currently negotiating the 2006 budget

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