Investor Presentaiton

Proactive and effective crisis policy response The government has adopted a wide range of policy actions to mitigate the impact of crises Crisis policy areas Fiscal policy Main measures undertaken in 2022 to 2024 ✓ Fiscal space is used to increase defence spending, integrate refugees, secure energy supply and to cover increased costs of living for elderly people, families and public sector entities ✓ The government has decided to raise several taxes in 2023 and 2024. The expenditures will be reviewed to reduce the estimated budget deficit in the coming years to ensure sustainability of public finances Social protection Banking system ✓ Increased the basic subsistence allowance to help support the most vulnerable households ✓ The average pension is exempt from income tax to support elderly people ✓ Strengthened due diligence related to anti-money laundering and counter terrorist financing (AML/CFT) ✓ Increased capital requirements and tightened housing loan requirements Trade and energy Labour market and regional policy ✓ Accelerated investments in alternative gas supplies and renewables to further limit Russian imports ✓ Estonian companies have adjusted to trade sanctions with Russia and Belarus; imports from the two countries have been on a persistent downward trajectory with exports flat at a low level ✓ Put in place measures to facilitate the incorporation to the labour market of Ukrainian refugees ✓ Invested in regional policy, including the Just Transition Fund (EUR 340m) and ERDF* (EUR 23m), both funded by the EU, and various other investments as part of the Cohesive Estonia Strategy 2021-2030 Note: (*) ERDF: European Regional Development Fund 8 REPUBLIC OF ESTONIA MINISTRY OF FINANCE

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