The Reform Party, Isamaa and the Social Democrats (SDE) have struck a deal on forming a new coalition, ending nearly a month of sometimes fraught talks.
Following Friday’s deal, the three parties will start the process of forming up a new coalition, which will make up 56 seats of the 101-seat Riigikogu.
The announcement stated that the goal of the new coalition is to increase Estonia’s security, give the public confidence in coping with the inflation, and switch to Estonian-language education starting from kindergarten.
Agreement on family support and the reform of the electricity market were two other areas that had until Friday’s agreement proved a sticking point.
Family support benefits
Child allowances will rise to €80 per month per child, and the allowance for families with three to six children to €600 and while the income tax-free threshold will also rise, to €654.
Energy inflation and market reform
To counter soaring energy prices, electricity market reform is being prepared and will provide the option to purchase electricity outside the market exchange, as a universal service, during the heating period (October to March inclusive), and which will be additionally compensated to a maximum of €50 per MWh.
Transition to Estonian-language education
According to the agreement, a full transition to Estonian-language education in pre-school education and in general education in the first to fourth grades will begin in 2024.
Additionally, the financing of higher education will be increased as soon as this year, by an additional €10 million.
The Reform Party, Isamaa and the Social Democratic Party are each to be given five ministerial portfolios in Prime Minister Kaja Kallas’ (Reform) new coalition government, Isamaa party chair Helir-Valdor Seeder told ERR on July 11.
According to Seeder, senior coalition partner Reform, which commands 34 seats in the 101-seat Riigikogu, will be charged with the portfolios of prime minister, minister of finance, minister of defense, minister of social protection and minister of rural affairs.
Isamaa, with 12 seats, will be given the portfolios of minister of foreign affairs, minister of education and research, minister of justice, minister of entrepreneurship and information technology (IT) and minister of public affairs.
SDE, with 9 seats, will receive the portfolios of minister of the interior, minister of health and labor, minister of economic affairs, minister of the environment, as well as minister of culture.
According to Seeder, an equal distribution of ministerial portfolios reflects a good balance in the new coalition. “The coalition being formed has set ambitious goals, and the distribution of portfolios will help these goals be realized as well,” he said.
VES/ERR News
