Prime Minister Kaja Kallas' govt resigns

Estonian President Alar Karis met with Prime Minister Kaja Kallas on Monday morning at Kadriorg in Tallinn, where she submitted her resignation in relation to her nomination as the high representative of the European Union for foreign affairs and security policy. Photo: Tairo Lutter

Estonian Prime Minister Kaja Kallas submitted her resignation at a government meeting on Monday due to her nomination as the European Union's high representative for foreign affairs and security policy, however, the government and prime minister are to remain in office until the appointment of a new prime minister and government.

Kallas highlighted the past years as filled with challenges and bold decisions.

«Over the last three years, Estonia has faced several trials. The COVID-19 crisis brought difficult times that impacted our healthcare system, economy, education, and social life. Despite the tough period, we managed to emerge stronger and wiser. Our decision to keep schools and society as open as possible resulted in economic growth reaching 7.2 percent in 2021,» she said.

«The energy crisis caused by Russia and the full-scale war in Ukraine brought new challenges. Energy crisis and energy security became significant concerns in the fall of 2021,» Kallas added.

The outgoing prime minister said that Estonia has taken significant steps towards developing renewable energy and thus ensuring confidence in the future.

«This also means a clean and sustainable environment,» she added.

«The economy was not unaffected by the crises, either, but despite the difficulties, Estonia's economic indicators have improved. The average salary and pensions have increased, unemployment has decreased, and energy costs are under control. One significant change decided by my government is the elimination of the so-called tax hump. This tax reform eliminates the current multi-tiered basic exemption system. The elimination of the tax hump is among the biggest tax reforms ever, reducing labor taxes and increasing people's income, ultimately revitalizing the economy,» Kallas said.

The outgoing premier emphasized that ensuring Estonia's security has been the government's top priority.

«We have invested more in national defense than ever before, increasing the defense budget to 1.44 billion euros annually, which amounts to three percent of GDP. Over the past two years, the defense budget has increased by nearly 70 percent. These decisions help ensure that Estonia is firmly protected and a safe place,» she said.

Kallas also considers Estonia's increased visibility and influence in Europe and significantly strengthened allied relations in NATO and the EU as major achievements.

«We have been among the most vocal supporters of Ukraine, both in words and, most importantly, in actions, contributing to their fight for democracy and freedom,» she added.

«Transitioning to Estonian-language education is also crucial for Estonia's security. This is one of the most important guarantees for the future, and I am very proud that we have given this transition a significant boost,» Kallas said.

She noted that maintaining sound state finances is also part of security.

«Improving public finances has been an essential part of our work. We have taken steps to reduce budget deficits and ensure the sustainability of public finances to provide people with security and necessary services,» she said.

Kallas also highlighted the establishment of marriage equality among the most important issues, adding that this decision is a step towards a more caring and tolerant society.

The premier expressed gratitude to all coalition partners and colleagues who have worked tirelessly to maintain confidence in the Estonian state and its people.

«We have worked wholeheartedly and with dedication to make Estonia the best place to live,» she said.

Kallas has been Estonia's prime minister since Jan. 26, 2021, leading the government in three coalitions -- with the Center Party from Jan. 26, 2021, to July 14, 2022; with Isamaa and the Social Democratic Party (SDE) from July 18, 2022, to April 17, 2023; and with SDE and Estonia 200 since April 17, 2023.

According to the Constitution, the president will nominate a new prime ministerial candidate within a maximum of 14 days after the government resigns. Once the prime ministerial candidate is appointed by the president, they have up to 14 days to present the basis for forming a new government to the Riigikogu.

The prime ministerial candidate authorized by the Riigikogu must present the government's composition to the president within seven days, who will appoint the government within three days. The government takes office by swearing an oath before the Riigikogu. The secretary of state will be present at the oath-taking ceremony. The announcement of the government taking office will be published in the Riigi Teataja gazette.