Riigikogu
Riigikogu
Skip navigation

Riigikogu

At the plenary sitting today, Eesti Pank and the Financial Supervision Authority presented their 2023 annual reports. The sitting started with the oath of office of the member of the Riigikogu Mihkel Lees.

Annual Report of Eesti Pank

The President of Eesti Pank (Bank of Estonia) Madis Müller presented the 2023 annual report of Eesti Pank.

Madis Müller started his presentation with the topic of price rise because ensuring price stability is a key task of Eesti Pank and other central banks in the euro zone.

“It is a cornerstone of stable economic growth and matters more to people because it has affected their daily coping that financial policy has had to be hardened faster and more extensively than had previously been expected because of the rampant inflation,” Müller said in his presentation.

The confidence that the pace of price rise in the euro zone is returning to the set goal of 2% consumer price rise per year has allowed the Governing Council of the European Central Bank to put a stop to the increase in interest rates and cut these for the first time in June this year.

The Central Bank also continues downsizing the asset purchase programmes launched in previous years to support the economy.

Speaking as a representative of Eesti Pank—economic adviser to the government—Madis Müller warned that the gap between the revenues and expenses of the governance sector was not sustainable. The growing debt servicing costs leave the government increasingly less leeway in deciding over other costs and less means to offer support to the economy.

“Eesti Pank has recommended that the domestic budgetary rules in Estonia should be somewhat stricter than the rules commonly agreed in Europe to keep the debt burden growth under control and collect reserves during good times. In the longer perspective, sound public finances and low debt burden support Estonia’s competitiveness and growth potential,” Müller said.

In addition, Eesti Pank would like to see the society constantly monitor competitiveness and discuss it.

Increasing attention is accorded to the actions of central banks in improving crisis resilience. Readiness plans are reviewed and enhanced, and exercises are carried out. Under the law, it is up to the Eesti Pank to organise the functioning of such primary services as payment transactions and cash circulation also in emergencies.

The Estonian economy still continued to decline in the first quarter, but Eesti Pank is more optimistic regarding the second half of the year. Energy prices have fallen, people’s purchase power has improved, investments have grown, rise in labour costs is slowing down, and demand on export target markets is estimated to begin reviving. However, the risks that have arisen from Russia’s aggression and geopolitical tensions have not disappeared.

Andres Sutt from the Reform Party Group took the floor during the debate.

Annual Report of the Financial Supervision Authority

The Chairman of the Management Board of the Financial Supervision Authority Kilvar Kessler presented the 2023 Annual Report of the Financial Supervision Authority.

The Financial Supervision Authority is an independent financial supervision and crisis resolution authority at Eesti Pank. It is part of the European Central Bank banking supervision system and the EU Single Resolution Board crisis resolution system. The keywords of the activities of the Authority in 2023 were million-euro penalty, prevention of money laundering, development of digital technology, and financial buffers of banks. In 2024, the Authority is focussing on the credit market, crisis exercises, and cyber risks.

During the debate, Maris Lauri from the Reform Party Group and Andre Hanimägi from the Social Democratic Group took the floor.

First readings of two Bills were cancelled

The first reading of the Draft Resolution of the Riigikogu “Development of Measures to Increase the Birth Rate” (208 OE), initiated by the Estonian Conservative People’s Party Group, was cancelled due to the absence of the presenter. The objective of the draft is to ask the government to develop draft legislation with the effect of shaping the Estonian environment into supporting increased birth rate, and present these to the Riigikogu.

The first reading of the Draft Resolution of the Riigikogu “Making a proposal to the Government of the Republic on the establishment of an internal defence reserve in the area of government of the Ministry of the Interior” (275 OE), submitted by the Conservative People’s Party Group, was cancelled due to the absence of the presenter. The purpose of the draft is to ask the government to establish an internal defence reserve in the field of authority of the Ministry of the Interior to enable the Police and Border Guard Board and the Rescue Board to fulfil their national defence tasks during crises and wars as well.

Oath of office

In connection with the resignation of Ants Laaneots, the sitting began with the oath of office of the alternate member Mihkel Lees.

Verbatim record of the sitting (in Estonian)

Photos (Author: (Erik Peinar, Chancellery of the Riigikogu)

Video recording will be available to watch later on the Riigikogu YouTube channel.

Riigikogu Press Service
Maiki Vaikla
+372 631 6456, +372 5666 9508
[email protected]
Questions: [email protected]

Feedback