Estonia may lose one of Tallink's ferries and 300 jobs 0 23

However, according to Mart Vyrklaev, a member of the Estonian Reform Party, this is merely a negotiation tactic on the part of "Tallink," and if the company does make such a decision, the reasons should be sought elsewhere.

According to the government plan, support measures for passenger transport will be canceled next year, which will save about 40 million euros over four years.

While the Estonian government considers this a necessary source of savings in a difficult budget situation, representatives of the maritime industry warn of the negative impact of such a step on Estonia's status as a maritime power.

The Chancellor of the Estonian Ministry of Climate, Marten Kokk, stated that the cancellation of subsidies would worsen the competitiveness of Estonian shipping companies compared to neighboring countries. He noted that Sweden is allocating 150 million euros for similar measures this year, Finland 80 million, while Estonia proposed 9 million euros per year.

"This proposal was initially approved in the coalition agreement. We had permission to provide state support, and we would have had the funds, however, at the last moment, political consensus could not be reached. Therefore, we are no longer including this measure next year," he emphasized.

The head of EMSA, Yuri Lember, noted that the cancellation of subsidies could lead to a situation where a shipping company, for example, "Tallink," would stop sailing under the Estonian flag.

"Such a large vessel can essentially be considered a separate enterprise: two shifts of crew mean 300 jobs. This could mean that the vessel would be 'deregistered' from the Estonian flag and leased to operate in other seas of the world. We know that since the beginning of the pandemic, two 'Tallink' vessels have already been used in Europe as floating hotels, and there are virtually no jobs for Estonians on them," Lember said.

The chairman of the board of "Tallink," Paavo Nygene, also stated on Thursday that without support, it is very difficult to achieve competitive advantages in the European Union and ensure transport links in times of crisis.

"Without the appropriate support, it is currently very difficult to operate on equal competitive terms in the EU, and abandoning the Estonian flag would mean mass layoffs and losses for the state budget," Nygene said.

"This is not in the interests of Estonia as a maritime state. 'Tallink' has agreed with the Ministry of Climate to hold consultations on the current situation at the beginning of the new year. Then the future of passenger transport under the Estonian flag should become clearer."

He explained that, according to the information he has, the ferry Victoria, which operates on the Tallinn-Helsinki route, has been operating at a loss for a long time. Lember pointed out that the vessel lacks both cargo transport and passenger flow.