Eesti in brief - 2010-02-03

Estonia’s junior coalition party, Isamaa ja Res Publica Liit, plans to block proposals by Prime Minister Andrus Ansip’s Reform Party to raise taxes or scrap tax exemptions, showing growing splits in the minority cabinet, reports bbn.ee. Estonia needs to “speedily” cut its tax burden, which has become the main obstacle to raising the country’s competitiveness and creating new jobs, party chairman and former prime minister Mart Laar said at a party convention on Jan. 30. The government plans to reduce tax exemptions according to the convergence program approved by the Cabinet last week and published on the Finance Ministry’s Web site. It will continue raising taxes on alcohol and tobacco. Laar cited the World Bank’s Doing Business 2010 survey, published in September, which showed Estonia’s total tax rate was higher than that of its neighbors. Finance Minister Jurgen Ligi said that if Mart Laar were to implement his promises, “Estonia could kiss the euro goodbye.”

While only a few Estonian ports have had problems with the ice so far this winter, in February the ice situation is predicted to become more difficult, reports LETA. “Ice conditions will definitely become worse soon,” said Director General of the Maritime Administration Andrus Maide. He said that problems will occur with the wind from the north. With south winds the ice moves to the Finnish coast, where it is now. This causes problems for shipping traffic. For example, last Friday passenger ferry Norlandia got stuck in ice on its way from Helsinki to Tallinn. With the help of a Finnish icebreaker, the passengers who started from Helsinki in the morning reached home by evening. The thickness of ice near Estonian ports now is 5-15 cm, but in places like Parnu, 40 cm. Port administrators estimate that Estonia would need the second ice-breaking vessel to manage with the difficult weather conditions towards the end of the winter.