While Estonia’s political parties agree the country’s rising debt is a serious problem, none believe an intraparty agreement to rein it in is feasible.
Meeting with party leaders Wednesday, Bank of Estonia President Ülo Kaasik said that interparty agreements to curb debt growth have worked in countries such as Finland and Sweden and he hopes to see something similar from Estonia’s politicians.
“We believe it would make sense to set a debt ceiling for Estonia — a level of debt that we could allow ourselves at most. That ceiling could, for example, be 30 percent, which is also where Estonia would end up if it adhered to its current budget rules,” Kaasik said.
All political parties acknowledge that the growth of government debt is a…