Tallinn: Estonian Prime Minister Kristen Michal announced on Monday that the Social Democratic Party (SDE) will be expelled from the coalition government due to disagreements over tax policies. The decision leaves the ruling coalition with a slim majority in the country’s 101-seat 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 stated during a press conference.
Following the Social Democrats’ exit, the coalition will now consist of the Reform Party and Estonia 200, which together hold 52 parliamentary seats. Despite the reduced majority, Michal expressed confidence that the government would continue to function effectively.
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The removal of the Social Democrats marks a significant political shift in Estonia, potentially impacting upcoming legislative priorities. The dispute over tax policies had reportedly caused increasing tensions within the coalition, ultimately leading to the prime minister’s decision to expel the party.
