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Estonian government eyes tax cuts

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Estonian government eyes tax cuts


The new mainly centre-right government of the Baltic state of Estonia has been sworn in. It is Prime Minister Andrus Ansip’s second consecutive term as head of government after his Reform Party narrowly won elections last month. He has formed a coalition with the conservative Pro Patria-Res Publica bloc and the Social Democrats, ditching former partner the Centre Party, which was second in the election.

The new coalition has pledged to cut income tax, to continue a tight budget policy and to make adopting the euro a priority. The government says it wants to boost childbirth in the country of just 1.3 million people and has promised to give more parental benefits for longer. The coalition has also signed an agreement in support of concrete and practical initiatives to develop relations with Russia, which have often been tense.

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