The year 2008 can be considered a year of changes in economy. The generally positive mood in business at the beginning of the year was replaced by a significantly more negative one in the second half of the year. General nervousness was further added by political discussions over the budget and thus the related news of possible tax increases. Fortunately they remained smaller than feared and with the pressure from the entrepreneurs the state started to review and decrease the expenses of the governmental sector. Introduction of the positions of the Chamber of Commerce in terms of economic development as well as educational policy to the big hall of the Riigikogu showed that the positions of entrepreneurs are considered important.

For the policy formation and legal department the key words of the year 2008 were the Employment Contract Act, maintaining the corporate income tax system and continuous fight against bureaucracy.

Fierce disputes were held until spring over the draft Employment Contract Act which was presented at the beginning of the year. In autumn the discussions continued already in the Riigikogu where the most important question lay in giving an earlier entry into force date for the Act, which was also supported by the Chamber of Commerce. At the end of December the new Employment Contract Act was passed and it will enter into force from 1 July 2009 or half a year earlier than initially planned.

Although at the beginning of the year it was clear that the Government of the Republic also supports maximum preserving of the corporate income tax system, the disputes in this respect lasted until spring when the draft aimed at solving the so-called 2009 problem was approved as a law by the Parliament. For the Chamber of Commerce it meant a successful finale for a fight that had been ongoing for years and the decision that the income tax system that brought Estonia success will de facto remain also in the future. The news that came from the European Court of Justice in autumn confirmed our position that the current Estonian income tax system is in line with the rules of the European Union and no major changes are required. Partially due to the budgetary discussions, the state decided thereafter that the changes initially planned for the beginning of the year 2009 will be postponed altogether. For the entrepreneurs it meant even less changes and keeping of the current system.

In 2008, in the fight against bureaucracy positive signs were shown by the government. Steps were taken to decrease in the future administrative burden on entrepreneurs in terms of annual reports and reports and data concerning statistics. These processes will also continue during the next year. Having emphasized the need to review the requirements for various activity licences, licences and registrations and the principle need for them for quite some time now, it was very positive to see at the end of the year that also the government has decided to take steps towards it.

In 2008 we did a lot of work to ensure quick taking into use of the funds for support measures allocated for Estonia from the European Union for the years 2007-2013 and that they would be of help for entrepreneurs. Technology investment support for entrepreneurs was implemented, the need for which we emphasised on the basis of different studies already in 2005.

Other important topics, areas and drafts on which we worked during the year 2008 were the following: amendments of the Value Added Tax Act and Taxation Act, Auditing Act, amendments of the Accounting Act, State Assets Act, amendments of the Chemicals Act, several drafts of conditions for the EU support measures, amendments of the Business Code, amendments of the Building Act, draft of the procedure for the format and issue of energy-performance label, amendments of the General Part of the Civil Code and Law of Obligations Act, Gambling and Gambling Tax Act, Fire Safety Act, Reorganisation Act etc.

In addition to the national regulations and topics, the positions of entrepreneurs had to be presented and protected in terms of several European Union legal acts – draft directive implementing the principle of equality of treatment, the European Commission Small Business Act, draft directive concerning VAT on financial services, initiative of the European Parliament concerning fight against misleading catalogue frauds etc. We continuously participated in several working groups which were summoned either for amending an act or discussing a topic which is of importance for the companies (Employment Contract Act, plan for increasing competitiveness of companies, conditions for eco-label, simplification of the reporting obligation of companies, codification of the environmental law and business administration law etc.). Besides the abovementioned, we gave our opinion and expressed our positions regarding other 50 drafts of Estonian and EU legal acts.

We continued cooperation with the public media. It became especially active with the EPL Ärileht in the sections of which called “Bureaucracy” and “Lawyer’s advice” the articles of the employees of the department were published periodically.