This is reported by the Estonian public service media Eesti Rahvusringhäsling. Representatives from the maritime sector warn that ending support could weaken Estonia’s competitiveness, especially as neighbouring countries such as Sweden and Finland continue to invest heavily in similar schemes. Estonia’s proposed support level was comparatively modest.

Union representatives argue that without support, Tallink may reflag vessels to other countries. One loss-making ferry on the Tallinn-Helsinki route, VICTORIA I, has been highlighted as particularly vulnerable, with concerns that removing a single large ship could eliminate hundreds of Estonian maritime jobs.

Tallink has already placed vessels elsewhere in Europe on charter with minimal Estonian employment. Tallink’s management has also cautioned that operating without state support makes it difficult to compete within the EU and maintain transport resilience during crises.

According to the media, discussions with the Ministry of Climate are expected to continue in the new year. Opponents of the subsidy argue that the measure was always intended as temporary pandemic relief. They note that Tallink has returned to profitability and say continued taxpayer support is no longer justified, especially given competing public spending priorities.

The former finance minister has denied that ending support would necessarily result in reflagging, stressing that the subsidy was not tied to the Estonian flag. Tallink Group reported a sharp drop in profit in the first nine months of the year, citing challenging economic conditions, while Estonia’s tourism sector has yet to fully recover to pre-pandemic levels.

© Shippax