As expected, the relative winner of Estonia’s 2015-parliamentary election, Taavi Rõivas (*1979), managed to retain his job as prime minister and leader of the pro-NATO and pro-EU Reform Party (RE). RE continues its coalition with the Social Democrats (SDE) led by Sven Mikser. Since both, the Reform Party (-3) and the Social Democrats (-4), lost seats compared with the 2011-election, they could not retain their absolute majority in the 101-member parliament. Controlling 30 respectively 15 seats, they needed a third partner to stay in power. The new coalition government is now composed by RE, SDE and IRL, the center-right Pro Patria and Res Publica Union led by Urmas Reinsalu. IRL lost 9 seats compared with the last election and now controls only 14 seats in parliament. Nevertheless, the three parties of the new coalition government together have a comfortable majority of 59 seats in the 101-member parliament of Estonia (Riigikogu).
Signed on April 8, 2015 the coalition agreement of the recently formed new government contains a minor cut in income taxes from 33% to 32%, an increase in the monthly, tax-free salary threshold from €154 to €205, a steady increase of the minimum wage over the coming four years to reach 45% of the average wage by the end of that period, an administrative reform on the local level, higher child support, an increase in alcohol taxes, stronger national security and more.
The new Estonian cabinet assumed office on April 9, 2015 and is composed by young ministers. The oldest member of government is Minister of Education and Research Jürgen Ligi (RE). He was born in 1959. The second oldest is Minister of the Environment Marko Pomerants (*1964; IRL). All the others are in their 30s and 40s. Prime Minister Taavi Rõivas (RE) was born in 1979, Finance Minister Sven Sester (IRL) in 1969, Minister of Public Administration Arto Aas (RE) in 1980, Minister of Foreign Affairs Keit Pentus-Rosimannus (RE) in 1976, Minister of the Interior Hanno Pevkur (RE) in 1977, Minister of Defense and leader of the Social Democrats (SDE) Sven Mikser in 1973, Minister of Justice Urmas Reinsalu (IRL) in 1975, Minister of Economic Affairs and Infrastructure Kirsten Michal (RE) in 1975, Minister of Culture Indrek Saar (SDE) in 1973, Minister of Foreign Trade and Entrepreneurship Urve Palo (SDE) in 1972, Minister of Social Protection Margus Tsahkna (IRL) in 1977, Minister of Health and Labor Rannar Vassiljev (SDE) in 1981 and Minister of Rural Affairs Urmas Kruuse (RE) in 1965.
Despite their young age, most minister have already previously held cabinet posts. New members of government are obviously the ministers of the Pro Patria and Res Publica Union, of whom Urmas Reinsalu has served as Minster of Defense from 2012 until 2014 and Marko Pomerants as Minister of Social Affairs from 2003 until 2005 as well as Minister of the Interior from 2009 until 2011. Only Finance Minister Sven Sester is a government newcomer for IRL.
Today, April 16, 2015 the new coalition government approved a 100-day action plan. It obviously contains the measures included in the coalition agreement mentioned above. Defense expenditure will at least be maintained at 2% of GDP. The partly undefined border with Russia will finally be properly marked. Labor taxation will be reduced. Duties on diesel fuel, tobacco and alcohol will be increased. The social tax will be lowered from 33% to 32%. The tax free income will be raised from €154 to €205. Child allowances will be raised from €45 to €60 per month for the first and second child, since the new coalition government came to the conclusion that Estonia needs a higher population growth. In this context, families with three and more children will receive additional €200. The creation of new nursery school places is planned; it is currently within the responsibility of local governments. Among the other measures of the 100-day action plan let’s finally mention that investment rules shall be simplified and the Estonian pension and investment funds should be able to invest in the Estonian economy more than at present.
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Article added on April 16, 2015 at 20:33 CET. Added to our newly designed WordPress pages on March 6, 2023 with a new photo of Tallinn (panoramic view of Tallinn by Diego Delso. License CC-BY-SA. Via Wikipedia.)
