Reform Party and Estonia 200 kicked SDE out from the government

Prime Minister Kristen Michal. Photo: Tairo Lutter / Postimees

The Reform Party and Estonia 200 have decided to kick out the Social Democratic Party (SDE) from the government and roll back several taxes that have already been legislated.

Prime Minister Kristen Michal, the leader of the Reform Party, said early on Monday afternoon that a government overhaul is under way.

«It is clear that there were two right-wing parties and one left-wing party in the government,» Michal said, adding that at a time when urgent decisions need to be made, they cannot be debated endlessly. «Some decisions have to be taken quickly and Estonia needs to move on,» he said.

Michal said they shook hands with SDE on Monday, and going forward, the ruling coalition will be made up of the Reform Party and Estonia 200.

This change also entails the cancelation of several already legislated taxes. Notably, the taxation of corporate profits will be abandoned.

«Business must have the opportunity to grow,» the premier said.

Additionally, the goal is to reduce the income tax burden on individuals, meaning that personal taxation will not start from the first euro, as has been legislated.

«We will return to a simple income tax system, meaning that the taxation of individuals will remain as it is now,» Michal said.

The premier said that when it comes to the constitutional amendment, the main aim is to ensure that the forthcoming elections in October will be the last in which non-citizens will have the opportunity to vote, and that Russian and Belarusian citizens will no longer be able to vote. This means that in the future, stateless residents will not be able to vote either.

On security, Michal assured that the direction of the new coalition will not change and security will remain a priority.

According to Michal, the Reform Party and Estonia 200 will draw up a new coalition agreement, which will focus on security and the economy, and will divide the ministerial portfolios between them.