The Riigikogu, the Estonian parliament, gave a green light to Prime Minister Ansip's new government. President Toomas Hendrik Ilves asked Andrus Ansip, leader of the Reform Party that won most of the votes, to be the next prime minister.
The new three-party government formed includes Ansip's Reform Party (R), the right-wing nationalist Pro Patria and Res Publica Union (PPRP) and the Social Democratic Party (SD), which together make up 62 of 101 seats in the Estonian assembly.
The new government was formed following the 4 March 2007 general elections and is expected to continue the pro-European and business-friendly policies conducted by the outgoing government. The new coalition promised to give a boost to the country's birth rate granting financial incentives for parents. The Baltic state's 1.3-million population has been declining during recent years.
The coalition also announced that it would reduce the flat tax rate from currently 22% to 18% by 2011. Estonia is one of Europe's most rapidly growing economies. Its success is often accredited to the much-disputed flat tax system.
The new government also said that it would rid Estonia's capital of Tallinn from a Soviet-era war memorial, which has been a concern for some anti-Russian nationalists. Russian Deputy Prime Minister Sergei Ivanov slammed the move and called it an act of vandalism, which "will not pass without leaving a trace on Estonian-Russian relations". He also called for a boycott of Estonian products during the Easter holidays.
