"In Estonia, we have taken a very systematic approach to reducing bureaucracy together with entrepreneurs. The first steps to simplify the legal environment have been taken at the European Union level as well, but we need to accelerate this, and it cannot remain just a one-off initiative. A simpler legal environment would allow companies to better respond to market developments, create new products, or enter new markets. Additionally, it would make the entire EU business environment more attractive to both local and foreign investors," said Keldo.
Under Estonia's leadership, together with other Member States, the so-called "Friends of Simplification" initiative collected 188 proposals this summer for simplifying legal acts at the EU level. Estonia's wish is to focus first on changes that have the greatest impact on businesses. The ministers from the Member States participating in the Council meeting agreed that, in addition to simplifying existing legislation, future legal acts must also avoid new unreasonable costs and overwhelming obligations for businesses.
For Estonia, the wider use of digital solutions is also important. "In addition to legislation, the burden on businesses can be reduced through digital solutions. In Estonia, we aim to reduce companies' administrative burden by up to 90 percent through data-based reporting. New EU legal acts must also support data-driven approach and digital solutions," noted Keldo.
The other topic discussed was the European Commission's proposal, published in July, to establish the European Competitiveness Fund, which is part of the EU's 2028–2034 budget framework and aims to strengthen the EU's economic resilience and support investments in strategic technologies.
Estonia welcomes the step, but equal opportunities for Member States must be ensured when allocating funding. "The fund must be open to all Member States and all companies—regardless of size or geographical location. Otherwise, investments in Europe will be distributed unequally, and we will lose competitiveness in technology sectors as a result," the minister stated.
Estonia also stressed the need to bring project consulting closer to businesses in every Member State to increase access to the Competitiveness Fund's opportunities, especially for small and medium-sized enterprises (SMEs).
Estonia's positions on the division of funds between the policy areas of the fund are still evolving. However, Estonia considers it important that the Competitiveness Fund supports the defence and space industry, digital development, the clean transition, as well as the biotechnology and bioeconomy sectors, all of which contribute to strengthening European competitiveness in strategically important areas.
