President Toomas Hendrik Ilves has called on the government to refrain from changing the Unemployment Insurance Fund's status as a body under public law, saying state control would harm cooperation and and trust between social partners.

"It's likely every people has a saying about 'fixing what isn't broken,'" said Ilves after a meeting with Meelis Paavel, the fund's head, and other executive board members.

"I follow with concern the opposition that has arisen over the reserves and rate of the unemployment insurance premium," said Ilves. "[It] has placed in question the future status and management model of the entire organization."

"I find the Fund's status under public law has ensured the necessary stability, resources and reliability for the Fund's operations," Ilves said and called on the Cabinet, employers and unions to respect each other and seek compromises. "I call on all parties not to scuttle a system that has already proven itself," he said.

"Possible nationalization of the Unemployment Insurance Fund will not leave the unemployed bereft of money or training but it would harm the commitment to cooperation and trust between social partners, which we may need later on considering Europe's uncertain economic future."