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Estonia Considers Renting Out Prison Space to Boost Revenue Amid Budget Deficits

Estonia Considers Renting Out Prison Space to Boost Revenue Amid Budget Deficits
  • PublishedAugust 29, 2024

Estonia is exploring the possibility of renting out prison space to other countries, a move that the justice minister believes could generate an additional €30 million ($33.5 million) for the financially constrained Baltic nation, Bloomberg reports.

With a population of 1.3 million and a comparatively low crime rate in recent years, Estonia’s three prisons currently operate at less than full capacity, prompting the government to consider this unconventional solution.

Justice Minister Liisa Pakosta highlighted the potential benefits of renting out prison cells during an interview with public broadcaster ERR published on Sunday.

“Serious crime is on the rise in Europe. There are only four countries in the EU where crime is increasing slowly; fortunately, Estonia is one of them right now,” she said, outlining the opportunity for Estonia to capitalize on its low crime rates.

The proposal comes as Estonia’s new government implements a series of tax hikes and budget cuts while also aiming to increase military spending. The rental of prison space is seen as a welcome financial boost.

Although the cabinet has not yet begun formal discussions on the proposal, it would need parliamentary approval to move forward. It remains uncertain whether the plan would garner enough support among lawmakers.

Pakosta referenced the existing arrangement under which Estonia currently houses three war criminals from other countries in its Tartu Prison, suggesting that renting out additional space could provide both financial and employment benefits.

“By renting out prison space, we’d achieve a situation where we’d provide significantly more jobs – jobs with completely reasonable salaries,” she explained, adding that this could help address several budget deficit-related issues.

The initiative has precedents, as Norway has previously rented out space in Dutch jails to alleviate capacity shortages. Additionally, reports indicate that Britain’s former Justice Secretary Alex Chalk met with Estonian officials last year to explore similar possibilities.

Written By
Michelle Larsen