Estonia has a new centrist government after Kallas (next EU high representative) stepped down

Brussels – It was a quick transition with no particular shake-up. Kristen Michal is Estonia’s new prime minister, succeeding party colleague and next EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas. Following the formal designation by the Estonian president, Alar Karis, and the green light from the Riigikogu (the single-chamber parliament) to the continuation of the coalition government formed by the Estonian Reform Party, Estonia 200 and the Social Democratic Party, the new centrist executive was sworn in today (July 23).

With 64 votes in favor and 27 abstentions, deputies approved the proposal by Cabinet member Michal of the Estonian Reformist Party yesterday (July 22). The program comprises improving state finances – with an income tax, a value-added tax, and increased excise taxes on alcohol, tobacco, and gasoline – and on investment in the defense and security sector within the framework set by NATO of spending a minimum of 2% of Gross Domestic Product on defense.

The 49-year-old former Climate Minister in the Kallas cabinet since the spring of 2023 thus continues the outgoing premier’s centrist government experience, who resigned last week to focus on her new role from the outset when the new European Commission takes office on Dec. 1. The European Council named former PM Kallas on June 27 to succeed Josep Borrell as the next EU High Representative for Foreign Affairs and Security Policy, opening the succession to head the government in Tallinn: “It is a huge responsibility at this time of geopolitical tensions,” had been her first words about the responsibility to “work to achieve EU unity, protect the Union’s interests and values in the changed geopolitical environment, and build global partnerships.”

Top officials of EU institutions in Brussels congratulated the new Estonian prime minister. “We will work together for a competitive and innovative Europe. For a stronger European Defense industry. And, as always, for a free, sovereign Ukraine,” said Ursula von der Leyen, European Commission president-elect, chosen last week for another five-year term. Similar words came from the president of the European Council, Charles Michel, who invited Michal to the upcoming summit of heads of state and government of the 27 member countries. “I am confident that we will be able to count on the continuation of Estonia’s strong support for Ukraine.” The president-elect of the European Parliament, Roberta Metsola, wished “a strong Estonia in a strong Europe,” as demonstrated in recent years: “Your country has inspired many, from leading in our response to the aggression in Ukraine to Europe’s digital revolution.”