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Estonia Takes On EU’s Fastest Inflation Rate in Budget Deal

  • Budget envisages electricity aid, public-sector pay boost
  • Premier has warned of hard winter as proximity to Russia bites
The Estonian nation flag flies at the top of the parliament building in Tallinn.

The Estonian nation flag flies at the top of the parliament building in Tallinn.

Photographer: Simon Dawson

Estonia’s governing coalition reached a deal on its 2023 budget, including plans to expand electricity subsidies and raise public-sector salaries as the nation copes with the European Union’s highest inflation rate of more than 25%.

“Next year’s budget has basically been put together,” Finance Minister Keit Pentus-Rosimannus said in a Facebook post on Friday, highlighting funding decisions for defense, energy subsidies and pay raises.