Ansip – show that you are in charge!
11.07.2008, 10:53The following is a column written by Meelis
Mandel, the editor-in-chief of Äripäev.
My hand is itching to find a paper to sign, when reading the opinion
article that was published in Irish Independent (thanks to the editor of
foreign news, who pointed it out) about the Irish finance and prime minister
Brian Cowen.
The dealings of Cowen are a bit far for right now. But as both a citizen and
a journalist I’m increasingly worried about our Prime Minister Andrus Ansip.
It’s surprising just how much of what is happening in Estonia resembles Ireland,
which has been presented as and has been our role model, the actions (or the
lack of thereof) of the prime ministers is similar as well.
Economy that has been growing for 15 years has dropped to its knees.
Construction capacity, real estate prices, and domestic consumption – all of it
is falling. Interests are rising. Government predicts a 0.5 pct of economic
growth for this year, but the option of a negative outcome is still in air. The
state budget put together in the end of the previous air is so optimistic that
it feels as if it was written while smoking hemp.
That’s what is happening in Ireland right now. Seems familiar? True, in
Ireland the statistics also show record number in unemployment, we don’t seem to
have that large of problem just yet, but job agencies do report that the number
of people looking for a job is rising. In Ireland, the discussions are about
letting the state budget end in an even bigger deficit; here, it’s a question
whether we should allow a deficit in the first place.
But in my opinion the behaviour of both prime ministers is the remarkable
thing. Just like Cowen, Ansip and his government seem to operate on the
principle “my promise only counts, when the optimistic prediction comes true”.
No cardinal steps are taken. There’s only talking, discussing, stalling.
What will happen if the minus in tax accruing falls becomes even deeper, as
the reality has different from predictions for every month of this year?
What will happen if Swedbank finally breaks under the pressure of share
holders and foreign investors and starts “making SEB” here? Maybe it will take
over Hansabank’s management from Erkki Raasuke and his team and will bend the
arm of everyone in trouble or any enterprise or person who might face trouble
soon. New rules will be established. Then the bankruptcy notices of Rüütmann and
Sedin might not be important enough to be covered in news.
A lot of “what will happens” could be written. But what is done about it
here?
Ministries report that they are cancelling their summer days. There are long
arguments about freezing the wages of members of parliament and high state
officials, which would save EEK 45 million. Or perhaps the construction of a
house will be postponed.
We can’t make people trust Estonia’s economy like this. It’s time for Ansip
to take off his pink glasses and show that he still is the authoritarian leader
he was during the bronze night. It’s not about how you understand history or
whether you’ll offend or insult someone. It’s taking responsibility before
voters and citizens who have gave you a job to do.
Firstly, Ansip has to forcefully freeze the wages of public sector for two
years. Right now, with no exceptions. Including the wages in enterprises
controlled by the state.
Secondly, the public sector has to be made to save. Give a number that has to
be saved to every ministry and then to stick to it. And observe. I don’t want to
see “additional expenses” under the line “additional expenses” in the budget of
some state authority again. The private sector is reducing the number of
employees and cutting down on expenses. The public sector has to do the
same.
Thirdly, nail the strongbox with suggestions to raise taxes closed. I don’t
support differencing taxes, but it’s wrong to increase accommodation VAT just to
fill is the state budget.
It’s the other way around. Only lower taxes bring about progress. I wholly
support setting a maximum limit to social tax, and the plan to lower the income
tax of a private person has to be carried out.
Only by doing all of that the prime minister can show that he’s in charge. If
he’s not, he has to pass on the torch.