Estonia's European Union Policy

137.    The implementation of the economic governance rules of the EU must ensure the sustainability of public finances and, in the longer term, debt reduction. The increase in defence expenditure must be financed permanently in the budget, including by using the flexibility provided for in the escape clause of the budgetary rules for 2025–2028.

138.    The European Commission must come forward with a proposal for a single Deposit Guarantee Scheme (DGS), which would not depend solely on their country’s ability to guarantee deposits in the event of a bank failure.

139.    The digital euro must be introduced in a way that ensures the resilience of payment services in crises. 

140.    Over-regulation in the banking sector needs to be reduced, paying particular attention to reducing reporting obligations.

141.    In taxation matters, it is important to maintain unanimity on legislation and healthy tax competition. We find it important that Estonia can maintain, to the maximum extent possible, the corporate income tax system that favours the reinvestment of profits. The Commission’s tax proposals must focus in particular on reducing administrative burdens and simplification. When new tax rules are introduced, it is necessary to analyse which older ones could be abolished. 

142.    Public procurement rules will need to be amended so that, in justified cases, procurement can be restricted to a limited number of tenderers, products, and services, based on security risks or European strategic autonomy considerations.