The renewed coalition signed the coalition agreement

24.03.2025 | 11:43

Stenbock House, 24 March 2025 – Today, the coalition agreement between the Estonian Reform Party and the Estonian 200 Party, led by Prime Minister Kristen Michal, was signed, which sets as its main task ensuring security, economic growth, and efficient and fair governance of the state. Five new ministers will start work in the new government coalition; one ministerial post will be abolished.

The parties of the coalition share a vision for a stronger, wealthier, and safer Estonia, where liberty, freedom of self-actualisation, well-being, justice, and clean natural surroundings are ensured for every citizen.

Estonia’s defence expenditure will increase to at least 5% of the GDP. Estonia will support Ukraine until its victory and a fair peace. NATO is the foundation of our national security.

The tax system in Estonia will become business-friendly, uniform, and straightforward. The tax on corporate profits will be abolished. A local benefit instrument will be created to stimulate economic growth.

The objective of the coalition is to develop an economy with a higher added value and take Estonia to the top 10 of global innovation leaders. In the energy sector, the aim is to ensure security of supply and the competitiveness of the economy.

Unnecessary regulations and reporting will be removed to make things simpler and faster. Data submission will become an automatic and one-off process. A council of entrepreneurs will be set up by the Government Office to eliminate excessive bureaucracy.

In addition to the coalition agreement, the coalition will also conclude sectoral agreements in the coming weeks, based on which a comprehensive action plan for the government will be drawn up.

The coalition agreement signed today can be found here:Coalition agreement between the Estonian Reform Party and Eesti 200 | Eesti Vabariigi Valitsus

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