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The Economic Development Committee of the government discussed supporting high-tech start-up companies

28. August 2018 - 16:30

Stenbock House, 28 August 2018 – at today’s sitting, the Economic Development Committee of the government discussed the creation of a support measure for high-tech start-up companies, which would provide an opportunity to increase the number of Estonian start-up companies and facilitate their entry into the international market.

“In Estonia, the rate of start-up companies is one of the highest in Europe. Start-up companies are an important part of our economic environment. The economic potential of high-tech start-ups is definitely high for our country, but their development is limited at the initial stage of the company due to insufficient capital, which is why many of them fail to grow and succeed. Therefore, it is important for us to support these activities, as it will later reflect in increased employment, high value added, and the accompanying tax revenues from the highly paid workforce,” explained Prime Minister Jüri Ratas.

“Over the past ten years, Estonian start-up companies have already attracted 900 million in investments, of which 90 per cent are foreign investments. I believe that Estonia’s competitiveness in bringing international investments home would increase significantly if we demonstrated our willingness to contribute to the rapid development of companies,” added Rene Tammist, Minister of Entrepreneurship and Information Technology, who presented the commission ways to promote start-up companies.

The government commission recognised the need for a support measure for the development of start-up companies. The support measure will be developed on the basis of an analysis by the Ministry of Finance and the Ministry of Economic Affairs and Communications. Proposals for further steps will be presented to the commission by the ministers in November at the latest.

Acceleration of the process of detailed planning
The Economic Development Committee also decided to make a proposal to amend the Planning Act to accelerate the procedures of detailed planning. In accordance with the proposal, a time limit will be set for the acceptance of a detailed plan, the time limit for the notification of public display of plans will be shortened, and a time limit will be set for the amendments to a detailed plan resulting from public display and public discussions. A time limit will also be set for the adoption or rejection of a detailed plan and it is proposed to grant rural municipalities and city governments the right to repeal the detail plans they have adopted.

The proposal for shortening procedural deadlines in the planning and environmental impact assessment procedure was submitted to the Economic Development Committee by the Estonian Employers’ Confederation.

“As a whole, Estonian law should strive towards a twofold shortening of all time limits of proceedings,” emphasised Toomas Tamsar, Director of the Estonian Employer’s Confederation, at the discussion of the commission.

In addition, the commission also gained an overview of the State Agency of Medicines’ time limits on the proceedings of marketing authorisation.

Background
• The Economic Development Committee of the government, led by the prime minister, meets once a month to gain an overview of the economic situation, find solutions to issues that need require coordination between ministries, involve experts and stakeholders, and address the development of the economic environment.

• The Economic Development Committee includes Rene Tammist, Minister of Entrepreneurship and Information Technology; Mailis Reps, Minister of Education and Research; Urmas Reinsalu, Minister of Justice; Kadri Simson, Minister of Economic Affairs and Infrastructure; Toomas Tõniste, Minister of Finance; Riina Sikkut, Minister of Health and Labour; and Sven Mikser, Minister of Foreign Affairs. The commission is headed by Prime Minister Jüri Ratas.

• Other ministers will attend the committee meetings at the invitation of the prime minister if the subject matter requires the presence of a responsible minister.

• The work of the committee is supported by the Strategy Unit of the Government Office.