Estonian PM regains ruling majority, warns of tough times ahead

TALLINN (Reuters) – The new cabinet of Estonian Prime Minister Kaja Kallas was sworn in on Monday, re-establishing political stability, but she warned of tough times ahead for the economy as energy costs soar and inflation rages in the fall-out from the war in Ukraine.

Estonia, a Baltic republic of 1.3 million set to host an increase in NATO troops to ward off possible threats from neighbour Russia, had been under a minority government since June 7 when Kallas cut ties with her junior coalition partner.

On July 8 Kallas announced a new three-party coalition of her liberal Reform Party, conservative Isamaa and centre-left Social Democrats to command 55 of 101 seats in parliament, which last week voted to reappoint her as premier.

“It‘s going to be a very hard autumn, a very hard winter, and the elections are going to be after that. So it is of course (a feast) for all the (opposition) populists,” she told Reuters in an interview before taking the oath of office on Monday.

“But there are no easy solutions, these are hard times.”

The next election is scheduled for March 2023.

via Reuters