Estonia’s new government is formally appointed. Its first priority is to improve state finances

HELSINKI — Estonia’s president formally appointed the Baltic country’s new government on Monday after lawmakers gave the green light to Prime Minister-designate Kristen Michal’s three-party coalition Cabinet. Addressing the new Cabinet, which is to be sworn in Tuesday, President Alar Karis said the government’s comfortable majority in the 101-seat Riigikogu, or Parliament, brings along “special responsibility.” Under a revised government program agreed on Friday, Michal’s first Cabinet will focus on improving Estonia’s ailing state finances, among other things, through hiking income tax and value added tax, in addition to raising the excise tax on alcohol, tobacco and gasoline. Kallas, Estonia’s first female head of government, formally resigned a week ago after which Michal started sounding possibilities for a broad-based coalition Cabinet. Following intense talks with parties last week, he decided to stick with the composition of Kallas’ outgoing government with senior partner Reform Party supported by the center-left Social Democrats and the liberal Estonia 200 party.