Opposition files no-confidence motion against Finance Minister Jürgen Ligi in Riigikogu

48 opposition MPs have submitted a no-confidence motion against Estonian Finance Minister Jürgen Ligi (Reform Party), accusing him of failing to address deteriorating public finances. The motion was filed by Centre Party faction leader Lauri Laats, citing a projected surge in national debt and Estonia's record-high food price inflation. The government has requested that the Riigikogu consider the motion at its session on Monday, June 15.

Estonia's opposition bloc has filed a formal no-confidence motion against Finance Minister Jürgen Ligi in the Riigikogu, escalating a prolonged political battle over the country's public finances. The motion, signed by 48 opposition MPs, was submitted on Monday, June 15, by Centre Party faction leader Lauri Laats on behalf of the signatories.

Debt trajectory at the heart of the dispute

Laats argued that Estonia's state finances are in a critical condition, pointing to projections showing that national debt will grow by a total of €7.7 billion over the next four years, rising from the current €9.7 billion to €17.5 billion by 2029. «Estonia's budget strategy foresees a sharp increase in state debt, which will push annual debt-servicing costs from the current €184 million to €464 million by 2029,» Laats said. «To keep the state functioning, we are being forced to borrow money just to cover day-to-day expenses. State debt has grown rapidly under the Reform Party, and Jürgen Ligi has been Finance Minister for the past two years.»

Laats also highlighted that a delegation from the International Monetary Fund, which recently visited Estonia, issued a negative assessment of the country's fiscal outlook. «International experts noted that Estonia's budget is projected to become even more imbalanced after this year, and that state debt will continue to grow if the current policy is maintained,» he said, adding that instead of accepting the criticism and acting on it, Ligi has chosen to blame previous governments and insist his decisions are the only correct ones.

Food prices and VAT under fire

The Centre Party leader also targeted Estonia's food price crisis, noting that Estonia risks becoming the only EU member state without a reduced VAT rate on food. «Estonia ranks first in the European Union in terms of food price growth. Over the past few years, food prices have risen by 60%. Food has become a luxury item, retail chains report declining sales volumes, and shoplifting is steadily increasing. Almost every week, a well-known restaurant closes its doors, yet Jürgen Ligi refuses to even discuss reducing VAT on food,» Laats stated.

He criticised remarks attributed to Ligi, including an alleged suggestion that people should stop looking at fuel station prices and manage price increases on their own, and a statement that reducing food prices would be «a stupid decision.» Laats said such comments reveal «a complete lack of understanding of the real problems facing people and businesses.»

Broad opposition coalition

The no-confidence motion was signed by MPs from the Isamaa, EKRE, and Social Democratic Party factions, as well as a number of non-attached Riigikogu members, including Peeter Ernits, Kersti Sarapuu, Enn Eesmaa, Ester Karuse, Ants Frosch, Jaak Aab, Tanel Kiik, Züleyha Izmailova, Henn Põlluaas, Andre Hanimägi, Leo Kunnas, Tõnis Mölder, Jaak Valge, Varro Vooglaid, and Kalle Grünthal.

The government held an electronic cabinet meeting and subsequently requested that the Riigikogu board schedule the vote of no confidence for the parliamentary session on Monday, June 15, at the earliest opportunity.