Regulation
Estonia takes passenger-shipping support out of its 2027–2030 budget plans
Estonia has removed nearly €10 million a year in passenger-shipping support from its budget plans for 2027 through 2030. Tallink says the decision makes a move away from the Estonian flag more likely.
Source: ERR (opens in a new tab)
ERR reported on 1 October 2026 that the Estonian government has taken the passenger-shipping support measure out of its state budget strategy. Documents with next year's state budget bill state that not continuing the measure will save nearly €10 million a year from 2027 through 2030. The measure had stayed in earlier forward plans after the Riigikogu decided last year not to reinstate it.
Tallink chief executive Peep Jalakas said the decision is not good for Tallink's sustainability or for the Estonian maritime sector, and that it makes a move of vessels away from the Estonian flag more likely. "This could put both jobs and the long-term future of Estonia's maritime sector at risk," he said. He declined to say how likely a move is, and said: "We certainly won't rush into making any hasty decisions. We still hope that, ultimately, the final decisions will ensure that Estonia's maritime policy is long-term and sustainable."
He said marine fuel costs have nearly doubled compared with the beginning of the year, and that carbon taxes on passenger shipping since the beginning of this year add millions of euros to costs.
The Seamen's Independent Union of Estonia said a year ago that Tallink could move its ferry Victoria away from the Estonian flag, along with 300 jobs. Union leader Jüri Lember said: "Very simple calculations have shown that just one vessel would already take away around €10 million in tax revenue."
Infrastructure minister Kuldar Leis said Estonia is seeking state-aid approval from the European Commission so that companies using more environmentally friendly fuels could receive budget support. "If we receive that approval, the plan is to once again seek funding from the state budget for the following years," he said. He put that support at about €10 million a year, roughly the same amount as was planned for the passenger-shipping measure last year.