Estonian PM: Extraordinary pension rise should cover inflation

  • 2020-09-08
  • BNS/TBT Staff

TALLINN – Estonian Prime Minister Juri Ratas said on Tuesday that despite the difficult economic situation, a potential extraordinary pension increase should cover at least inflation, the news portal of public broadcaster ERR reported.

"It is my wish and goal to move forward with a pension rise also in 2021, although the COVID-19 related situation has made the financial situation of the state considerably more difficult than it used to be," Ratas, chairman of the Center Party, told ERR.

"According to the forecast, the rate of inflation next year will be 1.4 percent and it will definitely hit hardest the people with the smallest incomes, including pensioners. It is a matter of discussion to envision an improvement in the position at least when it comes to inflation," Ratas said.

The head of government added that negotiations on the state budget started only last week and whether or not a pension increase is possible will become clear in the course of the negotiations.