ESTONIAN GOVERNMENT

Text by: Vahur Made
Estonian School of Diplomacy ESD, November 2001, updated January 2002

As the Head of the Government, the Prime Minister has the supreme power of policy making. Before the present government six men have held the Prime Minister's post in Estonia.

Siim Kallas:

2002-2003 Prime Minister
1999-2002 Minister of Finance
1995-1999 member of parliament and the parliamentary National Defense Committee
1995-1996 Minister of Foreign Affairs
1991-1995 president of the Bank of Estonia
1989-1991 chairman of the Estonian Central Association of Trade Unions
1986-1989 deputy editor of the newspaper Rahva Hääl (People's Voice)
1979-1986 director of the Estonian Central Board of Savings Banks
1975-1979 specialist at the Finance Ministry of the Estonian Soviet Socialist Republic

Siim Kallas entered Estonian political life in 1987 as one of the economists who published the program on Estonia's economic freedom from Moscow. Becoming the President of the Bank of Estonia in 1991 he became a leading figure in shaping the Estonian currency reform in 1992. Estonian bank notes bear the signature of Siim Kallas.

However, in 1999-2000 Kallas faced the court charges for a 10 million USD deceit. He was accused that during his presidency the Bank of Estonia invested 10 million USD to Paradiso SAL off-shore. After the money was sent to a bank account in Switzerland the representatives of Paradiso SAL disaappeared and the maoney was lost. Still, the court found Kallas not guilty in all charges.

In 1995, few months before the Riigikogu elections, Kallas established the liberally-oriented Estonian Reform Party. Since that he has been the RP's unchallenged leader. Siim Kallas was the Minister of Foreign Affairs in 1995-1996 in Tiit Vähi's 3rd government (meeting with his Russian colleague Yevgheni Primakov in Petroskoi in November 1996 and agreeing in principle on Estonian-Russian border treaty) and Minister of Finance in Mart Laar's second government 1999-2002.

Siim Kallas has represented the strong technocratic and monetarist approach in Estonian fiscal policies. Keeping the balanced budget has been one of his political guidelines.
The previous government coalition led by Siim Kallas had 47 votes in Riigikogu. So it was technically a minority government. However, on January 21, 2002 Riigikogu supported Siim Kallas as the new Prime Minister by 62 votes. This means that government had the support of both the Russian (Estonian United People's Party) and rural factions (Estonian People's Union) of the parliament.

The reasons behind the government change:

In 1999 three centre-right parties, the Pro Patria Union, the Reform Party and the Moderates formed the government coalition, so called Triple Union. As the Pro Patria Union gained 850 votes more than the Reform Party the premiership was granted to Mart Laar. However, the Reform Party was never satisfied with the junior member status.

The first signs of PPU-RP rivalry became evident already in 1999-2000 when the Riigikogu passed an amendment to the tax laws abolishing the corporate income tax. This has been the main election promise of the RP but was strongly criticised both by the PPU and the Moderates on the grounds that this action decreases considerably the state revenues. From his side the RP blocked the PPU's administrative reform and heavily criticised the privatization process of Narva power plants and Estonian Railway which was carried out by the Moderate Minister of Economics Mihkel Pärnoja and strongly supported by Prime Minister Mart Laar.

Both Laar and Minister of Foreign Affairs Toomas Hendrik Ilves (the Moderates) defended the Narva deal by stating without privatizing the power plants to the US-based NRG-Energy Company Estonia risks not to be invited to NATO on November 2002 Prague Summit. RP ridiculed this view and heavily criticised its coalition partners for accepting the NRG-demanded increase of electricity tariffs.

After 1999 local elections the rivalry developed further on the local level. First RP-CP coalitions were established in Viljandi and Pärnu municipalities in 2000-2001. For RP the CP was simply much stronger partner than the PPU. CP has the biggest faction in the Riigikogu and in many local governments.

In 2000-2001 the centre of the power struggle moved to Tallinn and Tartu. In 1999 Jüri Mõis (PPU), multimillionaire and one of the establishers of Hansapank, was offered the post of Tallinn mayor in exchange of his financial support to PPU during the 1999 parliamentary and local elections. His public statements (like "What's wrong with Tallinn public transport? Taxis are running all the clock round" or "Let's close down the Dramatic Theatre. It earns no profit. Contrary, for example, to the Hollywood Night Club") made him soon very unpopular.

His strong character drove him into deep conflict with the RP on several real estate related projects. When Mõis invited Meelis Lao, man who had survived two assassination attempts and allegedly had contacts to St. Petersburg mafia, to become mayor's adviser, the RP found the right moment to act. In May 2001 Mõis was forced to resign. Another multimillionaire, from the mobile phone business, Tõnis Palts (PPU) came to replace him.

During the summer of 2001 the presidential election campaign further hardened the RP-PPU relationship. Mart Laar refused to support RP's Toomas Savi as the common candidate of the whole government coalition. Instead he pushed PPU's own candidate, first Tunne Kelam (former dissident and a leading figure of the independence movement), then suddenly, and probably because of the ill-advise of the PR-experts, Peeter Tulviste (psychology professor and the PPU's head in Tartu). This was followed by the power shift in Tartu. The RP withdrew its support behind Tulviste in Tartu and formed new coalition with the CP.

Finally, Laar's manouvering with PPU's candidates proved very costly. The Electoral Body elected Arnold Rüütel from Estonian People's Union the President. Laar had lost its support both inside the coalition and inside his own party. In addition the PPU's public support was below five per cent, the parliamentary treshhold.

In that situation Laar opted for the populist move. In November 2001 Tõnis Palts announced that Tallinn planned a foreign loan of 1.5 billion crowns to be taken in 2002, the year of new local elections. The loan was meant to be used to repair Tallinn streets and schools. Siim Kallas, as the Minister of Finance, protested. When neither Palts nor Laar accepted any compromises the RP initiated a power change in Tallinn. Edgar Savisaar, the head of the CP, became Tallinn's mayor.

After that Laar resigned from the post of the premier in January 2002.Both the PPU and the Moderates refused of further cooperation with the RP and a new, RP-CP coalition was formed.

Edgar Savisaar:

• Historian, born 31 May 1950, Harku, Harjumaa.
• Leader of the Estonian Centre Party.
• Residing in Vihula, Lääne-Virumaa; married, two sons and two daughters.
• Published "Global Problems and Scenarios for the Future", 1982; "Speeches", 1992; "New Policy is Coming", 1994; "I Believe in Estonia", 1999; many articles in nationwide and local newspapers.
• University of Tartu (former TSU), 1973, Candidate in Philosophy, 1980.
• Tallinn Mere District Executive Committee, chairman of Planning Committee, 1980-1985.
• Estonian SSR State Planning Committee, head of dept., 1985-1988.
• Consultation Company Mainor, science director, 1988-1989.
• Estonian SSR Ministry of Economic Affairs, deputy chairman, chairman of Planning Committee, 1989-1990.
• Estonian SSR Minister of Economic Affairs, 1990.
• Prime Minister of Estonia, 1990-1992.
• Member of Congress of Estonia, 1990-1992; board member of Committee of Estonia, 1990.
• Member of Riigikogu, 1992-1995 (Vice Chairman ).
• Republic of Estonia Minister of Internal Affairs, 1995.
• Member of Riigikogu, since 1995 (Vice Chairman 1995-1999).
• Member of Tallinn City Council since 1996 (chairman 1996-1999).

Edgar Savisaar, the charismatic leader of Estonian Centre Party, is probably the most controversial figure in Estonian politics. His political style is definitely ruthless. He has turned his back to many of his former allies (Marju Lauristin, Siiri Oviir etc.). His party has experienced many internal rebellions against Savisaar's leadership, but he has managed to keep his leading role in the party and make it the most popular political force in Estonia. Savisaar gathered the biggest number of votes in the 1999 Riigikogu elections.

Other political forces are reluctant to cooperate with Savisaar and the Centre Party. His first government, 1990-1992, ended with the vote of no-confidence by the parliament. In 1995 Savisaar was the Minister of Interior Affairs in Tiit Vähi's second government. His career suddenly ended with the 'tape recording scandal'. It became public that Savisaar had secretly recorded his conversations with other politicians. President Meri helped Vähi to push the Centre Party out of the government. But the party still a strong position on the Tallinn city council.

Tiit Vähi:

• Engineer. Born on January 10, 1947 in Kaagjärve, Valgamaa. Married, son and daughter.
• Member of the Estonian Coalition Party. Deputy Head.
• Tallinn Technical University, 1970. Estonian Business School, 1988.
• Valga Car and Truck Cooperative, 1970-1989.
• Minister of Transportation, 1989-1992.
• Prime Minister of Estonia, 1992.
• Chairman of Tallinn city council, 1993-1995.
• Prime Minister of Estonia, 1995-1997.
• Member of Riigikogu, 1997-1999.
• Member of the Board in Valga Group Ltd. and Silmet Ltd. since 1998.

There is no other politician who has formed so many governments for Estonia as Tiit Vähi, four altogether. He tried to rule in coalitions with rural parties, but this was not enough to get a parliamentary majority. This is why he had to look for different cooperation partners and tried unsuccesful partnerships with the Centre Party and Reform Party. His time in office ended with the 'apartment scandal' in spring 1997 when it became known that he had helped many Coalition Party leaders to get luxury apartments in Tallinn city center with a price hundreds of times below the market price.

He is now retired from politics and works successfully in business. He is probably the wealthiest of all former Estonian Prime Ministers.

Mart Laar:

Historian. Born on April 22, 1960, in Viljandi. Married, son and daughter. Head of the Pro Patria Union.

MA in History from Tartu University, 1994 and BA in History from Tartu University, 1983. Main research interests have been the life and activities of Estonian national movement leader Jakob Hurt and the Estonian guerilla war against the Soviet Union after the Second World War. Has published several monographs on these topics. Also the author of many secondary and high school history text books.

• History teacher in Tallinn 24th Secondary School, 1987-1990.
• Adviser of the Historical Heritage Department of the Ministry of Culture, 1990-1992.
• Member, Estonian Congress and Estonian Committee, 19901992.
• Prime Minister of of Estonia, 19921994.
• Member of Riigikogu 1994-1999.
• Prime Minister of of Estonia, since 1999.
• Awards: The Years Best Young Politician in the World, 1993.

Mart Laar has shocked Estonian political life with the phenomenon of very young politicians. When his first government took the office the average age of ministers was between 30-35. His name is probably most closely associated with the policy favoring rapid reforms and departure from a Soviet-style society. He has strongly advocated the need to push persons closely affiliated with the Soviet regime out of Estonian politics ('let's clean the place up'). An eternal opponent for Edgar Savisaar and Tiit Vähi.

However, as a reformer and young revolutionary, he has also faced severe setbacks. His first government lost a no-confidence vote in the Riigikogu in 1994. His reforms have raised serious criticisms and even his proponents in Europe and America blame him of paying too little attention to the social problems of Estonia. His second government, in office since 1999 has also struggled with severe problems connected to the privatization of Estonian Railways and the Narva power plants, as well as tensions that shook his coalition with the Reform Party and the Moderates during the presidential campaign of 2001.

• Climatologist, born 11 Jan. 1940, Tallinn.
• Member of the People's Party Mõõdukad (the Moderates). Head of the Council of the present ruling coalition.
• Residing in Padise, Harjumaa; married, two sons.
• "The Letter of Forty", 1991; "Cassiopeia", 1992; more than 100 scientific papers, 100 popular scientific articles, articles in nationwide and local newspapers; appeared in radio and TV programmes.
• University of Tartu (former TSU), 1963. Postgraduate studies at Tallinn Botanic Garden, 1965-1968.
• Candidate in Geography, 1973.
• Hydro-Meteorology Board, 1963.
• Soviet military service, 1963-1965.
• Soviet Expedition to the Antarctic, junior researcher, 1968-1970.
• Tallinn Botanic Garden, senior engineer, 1970-1973, senior researcher, 1973-1976, head of sector, 1976-1979, scientific director, 1979-1981, head of sector, 1981-1988, director, 1988-1990.
• Member of Congress of Estonia, 1990-1992; member of Committee of Estonia, 1990.
• Estonian Minister of Environment, 1992-1994.
• Prime Minister of Estonia, 1994-1995.
• Member of Riigikogu since 1995.

Andres Tarand headed the transition government between the end of the first Laar government and the 1995 Riigikogu elections.

Mart Siiman:

• Philologist, psychologist, born 21 Sept. 1946, Kilingi-Nõmme, Pärnumaa.
• Member of Estonian Coalition Party.
• Residing in Jõelähtme, Harjumaa; married, two sons.
• University of Tartu (former TSU), 1971.
• Work and Leadership Scientific Organisation Laboratory, psychologist, assistant head, head of information - computer centre, 1971-1975.
• University of Tartu, Chair of Philosophy, senior lecturer, 1975-1982.
• Estonian Television, correspondent, deputy director of programme, chief editor, 1982-1987. Estonian Radio, director, 1987-1989.
• Member of Tallinn City Council, 1989-1993.
• Estonian Television, director general, 1989-1992.
• Member of the Riigikogu, 1995-1997.
• AS Reklaamitelevisioon, managing director, 1992-1995.
• Prime Minister of Estonia, 1997-1999.
• Member of the Riigikogu since 1999.
• Chairman of Estonian Sports Society "Kalev", member of Council of Elders of Defence League.
• Awarded the Grand Cross of the Royal Norwegian Order of Merit.

Mart Siiman headed the transition (minority) government between the last Vähi government and the 1999 Riigikogu elections.

The Government (the 37th Estonian government), January 28, 2002 - April 2003:

A coalition between the Estonian Reform Party and the Estonian Centre Party:

Prime minister: Siim Kallas (Reform Party)
Minister of Foreign Affairs: Kristiina Ojuland (Reform Party)
Minister of Justice: Märt Rask (Reform Party)
Minister of Defence: Sven Mikser (Centre Party)
Minister of Interior Affairs: Ain Seppik (Centre Party)
Minister of Finances: Harri Õunapuu (Centre Party)
Minister of Economics and Minister of Transport and Communication: Liina Tõnisson (Centre Party)
Minister of Agriculture: Jaanus Marrandi (Centre Party)
Minister of Environment: Heiki Kranich (Reform Party)
Minister of Education: Mailis Rand (Centre Party)
Minister of Culture: Signe Kivi (Reform Party)
Minister of Social Affairs: Siiri Oviir (Centre Party)
Minister of Regional Affairs: Toivo Asmer (Reform Party)
Minister of Population: Eldar Efendijev (Centre Party)

The Government (the 36th Estonian government), March 25, 1999 - January 2002:

Coalition between the Pro Patria Union, Estonian Reform Party and the Moderates. 15 members.

Prime Minister Mart Laar (Pro Patria Union)
Minister of Education Tõnis Lukas (Pro Patria Union)
Ministry of Education home page
Minister of Justice Märt Rask (Estonian Reform Party)
Ministry of Justice home page
Minister of Defence Jüri Luik (Pro Patria Union), Minister of Environment Heiki Kranich (Estonian Reform Party)
Ministry of Environment home page
Minister of Culture Signe Kivi (Estonian Reform Party)
Minister of Economics Henrik Hololei (The Moderates)
Minister of Agriculture Ivari Padar (Pro Patria Union)
Ministry of Agriculture home page
Minister of Finance Siim Kallas (Estonian Reform Party)
Minister of Interior Affairs Tarmo Loodus (Pro Patria Union)
Minister of Social Affairs Eiki Nestor (The Moderates)
Minister of Transport and Communications Toivo Jürgenson (Pro Patria Union)
Ministry of Transport and Communications home page
Minister of Foreign Affairs Toomas Hendrik Ilves (The Moderates)
Ministry of Foreign Affairs home page
Minister of Regional Development Toivo Asmer (Estonian Reform Party)
Minister of Ethnic Affairs Katrin Saks (The Moderates)

Previous governments:

35. 17.03.1997-25.03.1999, 2 years, PM Mart Siimann, (minority government of the Estonian Union Party and the Rural Union), 15 members.

34. 01.12.1996-17.03.1997, 3.5 months PM Tiit Vähi, (minority government of the Estonian Coalition Party, the Rural Union and the Estonian Progress Party), 15 members.

33. 06.11.1995-01.12.1996, one year, PM Tiit Vähi, (Estonian Coalition Party, Estonian Reform Party and three rural parties), 15 members.

32. 17.04.1995-06.11.1995 almost 8 months, PM Tiit Vähi, (Estonian Coalition Party, the Union of Rural People - consisting of the Party of Families and Pensioners, the Land Union, the Estonian Party of the Rural People and the Peasant Union - and the Estonian Centre Party), 15 members.

31. 08.11.1994-17.04.1995 more than 5 months, PM Andres Tarand, (Pro Patria, the Party of Estonian National Independence and the Moderates), 15 members.

30. 21.10.1992-08.11.1994 2.5 years, PM Mart Laar, (Pro Patria, Estonian National Independence Party and the Moderates), 16 members.

29. 30.01.1992-21.10.1992 more than 8 months, PM Tiit Vähi, (a non-party government formed of specialists), 21 members.

28. 08.05.1990-29.01.1992 1 year, 8 months, PM Edgar Savisaar, (Popular Front and other forces of the 'pragmatic' wing of the independence movement), 21 members.