Estonian PM reaches coalition deal to form majority government

Prime Minister of Estonia, Kaja Kallas speaks during an interview with The Associated Press in Tallinn, Estonia, Wednesday, June 22, 2022. Kallas called European unity on the war in Ukraine “a negative surprise” for Russian President Vladimir Putin. Still, she told The Associated Press in an interview on Wednesday, one shouldn’t underestimate Moscow’s military capabilities, because “they are in this for the long haul.” (AP Photo/Sergei Grits)

Estonia’s governing centre-right Reform Party of Prime Minister Kaja Kallas has reached a tentative deal to form a coalition government with two other parties, ending a month-long political stalemate in the Baltic nation.

Ms Kallas, leader of the European Union and Nato nation since January 2021, kicked out the left-leaning Centre Party from the two-party coalition on June 3 following disputes over spending and welfare policies amid increasing household costs due to high inflation.