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Estonia’s new government is formally appointed. Its first priority is to improve state finances
HELSINKI (AP) — Estonia’s president formally named the Baltic country’s new government on Monday after lawmakers gave the green light to Prime Minister-designate Kristen Michal’s three-party coalition cabinet.
Addressing the new Cabinet, which will be sworn in on Tuesday, President Alar Karis said the government’s comfortable majority in the 101-seat Riigikogu, or parliament, brought with it a “special responsibility.”
According to a revised government program agreed on Friday, Michal’s first cabinet will focus on improving Estonia’s struggling public finances, among other things, by raising income tax and value-added tax, as well as increasing excise duty on alcohol, tobacco and gasoline.
In a 64-27 vote, lawmakers approved the government proposed by Michal, who is a seasoned politician but first-time prime minister, from the ruling center-right Reform Party.
Michal, 49, who previously served as climate, justice and economy minister, was chosen to become Estonia’s new prime minister in late June, just days after his predecessor Kaja Kallas was chosen to be the European Union’s new foreign policy chief — a role she will take up later this year.
Kallas, Estonia’s first female prime minister, formally resigned a week ago, after which Michal began exploring possibilities for a broad-based coalition cabinet. After intensive talks with parties last week, he decided to maintain the composition of Kallas’ outgoing government with senior partner the Reform Party supported by the center-left Social Democrats and the liberal Estonia 200 party.
In addition to finances, the new Cabinet also promises to continue investing heavily in defense and security in the small NATO nation of 1.3 million people, which borders Russia to the east.
In the main cabinet positions, Estonia 200’s Margus Tsahkna will continue as foreign minister and Social Democrat Lauri Läänemets will continue as interior minister. Veteran Reform politician Jürgen Ligi will return to a government position and take on the role of finance minister.
Michal has been active in the Reform Party, Estonia’s dominant party, since the late 1990s. He served as climate affairs minister in Kallas’s last cabinet, which took office in April 2023.
Michal has also served as secretary of the Reform party and as a member of the Tallinn City Council. He is expected to take over the chairmanship of Reform from Kallas in the autumn.