The International Monetary Fund (IMF) has cautioned that Estonia’s current fiscal policies are leading to an unsustainable level of public debt. This assessment is echoed by the Bank of Estonia, with Governor Ülo Kaasik confirming alignment with the IMF’s findings. Both institutions highlight the need for long-term financial planning, extending beyond individual election cycles, to address the growing debt. High public debt increases borrowing costs for both the government and private sector, potentially hindering economic growth. Officials suggest Estonia should seek to emulate the cross-party fiscal agreements seen in Sweden and Finland to ensure long-term financial stability. Failure to address the issue could create significant economic challenges for the nation.