Jaanus Aal: Estonia Needs Its Own Moncloa Pact

Industrial entrepreneur Jaanus Aal argues that Estonia does not need new reforms or tax changes to revive its economy. He calls on politicians to forge cross-party agreements on matters crucial to the nation, agreements that would not shift with every election cycle.

Estonia's economy needs stability, not new reforms or further tax changes – this is the message industrial entrepreneur Jaanus Aal is sending to the country's politicians. Aal compares the approach Estonia needs to Spain's so-called Moncloa Pact, signed in 1977, which helped the country emerge from a long period of dictatorship by creating a broad societal agreement for implementing economic and political reforms.

Stability Matters More Than Reform

According to Aal, the main problem for business leaders is that political priorities change too frequently. Each new government brings a new economic policy direction, new taxes or their abolition, and new rules that make long-term planning difficult. As an industrial entrepreneur, he expects politicians first and foremost to provide predictability and clear, stable rules of the game.

Estonia's economy has faced numerous challenges in recent years – rising energy prices, labour shortages, and uncertainty stemming from neighbouring countries have all affected the business environment. In Aal's view, these problems cannot be solved by isolated interventions, but rather by a broad societal agreement on the direction the country should move in over a longer perspective.

A Cross-Party Agreement Is Key

Following the example of the Moncloa Pact, Estonia's political forces should agree on areas strategically important for the nation – whether energy security, education, employment, or the foundations of the tax system. Such agreements should be robust enough that they do not collapse with every election cycle, but remain in effect regardless of which party is in government.

Aal's opinion is an important signal from business circles, where growing frustration with political instability is being felt. Entrepreneurs need certainty that today's rules will apply tomorrow – and it is precisely this stability that Estonia's version of the Moncloa Pact should provide.