Estonia

Estonia performs well in international comparison (rank 6) with regard to vertical accountability.

Elections are free and fair, with a proportional representation system in which most candidates are registered within party lists. Political parties are required to submit financial reports that are publicly accessible. The voting age is 18 for national elections and 16 for local elections, but noncitizens, who make up 16% of the voting-age population, can vote only in local elections.

Two impartial administrative bodies administer the elections. Advance and online voting are both becoming more common. The state is increasingly providing voting information in Russian, seeking to increase ethnic minority engagement. Political polarization has increased in recent years, hampering cross-party cooperation.

While access to public information is regulated by the Public Information Act, critics say this act favors the rights of data subjects rather than those requesting access to information. Official websites and portals offer access to government information.

In the category of diagonal accountability, Estonia receives high ratings in international comparison (rank 7).

The state does not typically censor the media. However, since Russia’s invasion of Ukraine, it has banned Belarusian and Russian channels that promote war propaganda. The public broadcaster is required to present a plurality of opinions. Two large media houses dominate the private media landscape, but independent websites are gaining popularity.

Political liberties are widely respected. Trade union membership rates are low due to the country’s communist past, and unions have little policy-formulation capacity. The main employers group is more influential. No permanent tripartite council is in place.

Civil society organizations are active in policy processes, but generally lack the financial and human resources to formulate policy proposals independently. Environmental associations are overshadowed by strong for-profit interest groups such as energy and forestry firms.

Estonia falls into the middle ranks internationally (rank 13) with regard to horizontal accountability.

The National Audit Office operates independently. Its findings are publicly available and reported widely in the media. The Data Protection Inspectorate has the ability to impose fines or initiate criminal proceedings.

Judicial independence is guaranteed by the constitution and other acts. Civil rights are broadly respected. Basic legal advice is free, though court fees can be high. Despite strong legal protections against discrimination, gender equality remains a challenge. The country has the largest gender pay gap in Europe.

A strong anticorruption framework is in place. Civil servants and lawmakers must declare assets and conflicts of interest annually. The parliament has modest support and research resources available, and opposition politicians are limited in their ability to investigate government actions.

Estonia performs well in international comparison (rank 6) with regard to coordination.

Coalition governments follow a previously agreed government program and rules of procedure, coordinated by a coalition committee. The government office’s Strategy Unit coordinates and monitors activities associated with the long-term Estonia 2035 strategic plan.

The government office has limited ability to evaluate legislative proposals. Government support structures are largely located in the line ministries. All policy initiatives are discussed in the coalition council, and the cabinet reviews substantial issues in a weekly meeting. Informal coordination is common.

Estonian municipalities are legally responsible for public services, but are limited by their dependence on central government grants. No intermediate regional self-governance tier exists. The central government has taken over core tasks that require a concentration of professional resources, for instance in education and social services.

Estonia falls into the lower-middle ranks (rank 18) with regard to consensus-building.

When academic studies are commissioned, they are largely intended to obtain an overview of problems or to support the government’s standpoints. Expert consultations such as roundtables and workshops are common, but rarely bring about significant policy changes.

Government guidelines regulate consultation with societal actors, with a focus on the policy-preparation phase. Employers groups have considerably more policy-formulation capacity than unions, and thus more influence. Capacities held by noneconomic interest groups vary. Environmental groups have traditionally focused on the local level, but this is changing.

Public institutions in Estonia provide extensive online resources, but websites are not fully harmonized, and some information is too complex for general use. There is growing concern that officials are classifying too many documents for internal use, limiting transparency.

Estonia falls into the top ranks internationally (rank 4) with regard to sensemaking.

A parliamentary think tank called the Foresight Center conducts long-term social and economic analyses. However, strategic planning efforts lag due to difficulties in reaching consensus even on short-term goals. The government office’s Strategy Unit has expanded its focus on policy innovation.

Preliminary regulatory impact assessments (RIAs) are prepared for primary laws, but full RIAs are rarely conducted. The issue of sustainability is included in RIA guidelines, but in practice plays a minor role in the impact assessment process.

The government office Strategy Unit oversees policymaking quality and evaluates the effectiveness of policies, typically three to five years after implementation. These evaluations cover areas like competition, administrative burdens, and regulatory overlap.

Estonia performs well in international comparison (rank 7) in the category of economic sustainability.

Nonbinding circular economy initiatives are in place, but binding indicators come from the EU level. Efforts to update and coordinate strategic infrastructure are fragmented. A climate plan aims to reduce greenhouse gas emissions to net zero by 2050, but lacks sector-specific indicators and penalties for failing to meet targets.

A new law has increased labor-market adaptability. Recent reforms have sought to integrate disabled individuals and youth into the job market. Immigration policies remain strict, with a focus on high-skilled workers. Unemployment insurance is compulsory, but excludes self-employed and gig workers.

Individuals pay a simple income tax rate of 20%, with deductions making it slightly progressive. A frugal state has produced Europe’s lowest debt-to-GDP ratio for years, but debt has recently been rising. Growing financial challenges have made tax reform a major issue.

In the category of social sustainability, Estonia fall into the lower-middle ranks internationally (rank 21).

The school system is strong, with good PISA test results, low levels of inequality and high levels of public spending. The country’s welfare system prioritizes public services over cash benefits. Poverty rates, especially among the elderly and working poor, are higher than the OECD average.

Health spending has increased but remains below the OECD average. The healthcare system faces sustainability challenges due to a shrinking workforce and rising out-of-pocket costs. Gender inequality remains a significant issue, with Estonia having one of the largest gender pay gaps in Europe.

Family benefits are substantial, but prioritize stay-at-home parents. Preschool childcare is broadly available and reasonably affordable. Integration has historically been an issue centered on the minority Russian-speaking population, but a large number of refugees from Ukraine has entered the country since 2022. Integration of this group has been relatively successful.

In the category of environmental sustainability, Estonia falls into the middle ranks internationally (rank 15).

Estonia is one of the most carbon- and energy-intensive economies in the EU. In 2020, greenhouse gas emissions were twice the EU average. Renewables use is climbing, but fossil fuels still make up 71% of the country’s energy mix.

A new Climate Ministry was created in 2023 to coordinate climate efforts. By 2030, the existing climate plan aims to reach 50% renewables use in the energy sector, along with 80% in the heat sector. Plans to protect biodiversity are underway, but the total area of forest and grassland lost in the last five years is very high.

As a small country, Estonia’s development cooperation is not focused on the environment. It participates robustly in multilateral environmental agreements, but its contributions to the Green Climate Fund are below average.