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    Home > Headlines > Estonia's Social Democrats to leave coalition government, PM says
    Headlines

    Estonia's Social Democrats to leave coalition government, PM says

    Published by Global Banking & Finance Review®

    Posted on March 10, 2025

    1 min read

    Last updated: January 24, 2026

    Estonia's Social Democrats to leave coalition government, PM says - Headlines news and analysis from Global Banking & Finance Review
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    Tags:tax administrationcorporate taxpublic policyfinancial crisisGovernment funding

    Quick Summary

    Estonia's PM Kristen Michal expels Social Democrats over tax disagreements, leaving a narrow majority with Reform Party and Estonia 200.

    Estonia's Prime Minister Expels Social Democrats from Coalition

    HELSINKI (Reuters) - Estonia's Reform Party Prime Minister Kristen Michal said on Monday he will expel the Social Democratic Party from the government due to a disagreement over taxes, leaving him with a narrow majority in parliament.

    "At a time when urgent decisions need to be made, one cannot return to the roots of these decisions endlessly to review them. Certain decisions need to be made so that Estonia can move forward," Michal told a press conference.

    The Reform Party and the Estonia 200, which together hold 52 seats in the 101-seat parliament, will remain in government, he said.

    (Reporting by Andrius Sytas and Essi Lehto, editing by Terje Solsvik)

    Key Takeaways

    • •Estonia's PM Kristen Michal expels Social Democrats from the coalition.
    • •The expulsion is due to disagreements over tax policies.
    • •Reform Party and Estonia 200 maintain a narrow majority in parliament.
    • •Urgent decisions are needed for Estonia's progress, says Michal.
    • •The coalition change impacts Estonia's political landscape.

    Frequently Asked Questions about Estonia's Social Democrats to leave coalition government, PM says

    1Why is the Social Democratic Party being expelled from the government?

    The Social Democratic Party is being expelled due to a disagreement over taxes, as stated by Prime Minister Kristen Michal.

    2Who remains in the government after the Social Democrats' expulsion?

    The Reform Party and Estonia 200 will remain in government, holding a combined total of 52 seats in the 101-seat parliament.

    3What did Prime Minister Kristen Michal say about the situation?

    Prime Minister Kristen Michal emphasized the need for urgent decisions and stated that certain decisions must be made for Estonia to move forward.

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