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Draft on a Policy Agreement It took the Reform Party/IRL Estonian Government coalition shorter time to sketch a 55-page policy agreement draft then it took them to distribute the Minister portfolios among their candidates.

- The major economic goals of the coalition agreement are to bring the national budget into a sustainable surplus by 2014, and to begin decreasing labor taxes beginning in 2013, commented Prime Minister Andrus Ansip.

- The most important issue in the agreement is what we promised the people; Estonia's finance system must be in good health. We certainly don't what to take the road of Greece or any other large country that has huge debts and places a heavy burden on its own people and most importantly future taxpayers, commented a coalition Government representative.

Using the Reform Party's action plan as a foundation, the coalition agreement draft includes both ups and downs in terms of public spendings and taxation.

Among other issues in the agreement draft, the coalition says it wants to provide free higher education, cut labor taxes, establish a parental pension system, eliminate the fringe benefit tax on job-related training, establish workmen's compensations and a work-related injuries insurance system, and support International Baccalaureate programs.

- We have agreed that in the beginning of 2014, we will launch a social tax roof on monthly incomes surpassing 4.000 euro, and in the beginning of 2015 we will lower the income tax to 20%, said Andrus Ansip.

The agreement also mandates that legislation for free higher education must be passed this year. The Government would then subsidize tuition for up to 12.500 students as this legislation goes into force between 2012 and 2014.