ESTONIA-Kallas To Resign As PM 15 July To Take Up EU Role

Estonia's ERR reporting that PM Kaja Kallas is set to offer her resignation to President Alar Karis on Monday 15 July as she prepares to take up the role of European Commission High Representative for Foreign Affairs and Security Policy. Kallas has served as PM since 2021, and since Russia's invasion of Ukraine in Feb 2022 has been one of the EU's most vocal leaders calling for a hard-line stance against President Vladimir Putin.

• The confirmatory vote on Kallas' appointment is set to take place alongside that of the College of Commissioners, which in turn requires the re-appointment of Commission President Ursula von der Leyen for a second term.
• Once Kallas resigns, Karis will begin consultations with parties in the Riigikogu (parliament) on forming a new gov't (the entire gov't resigns when the PM steps down in Estonia). Kallas' centre-right liberal Reform Party is likely to be given the mandate as the largest in parliament.
• Reform has already selected Climate Minister Kristen Michal as its candidate for PM, and is seeking backing from its coalition partners - the centre-left Social Democrats and liberal Estonia 200.
• It remains unclear when Karis will appoint a new candidate for PM, or indeed when the new gov't will take office.
• Estonia sits as one of the eurozone's smallest economies, but has played an outsized political role partly due to Kallas' prominent role on the EU stage and the country's position bordering Russia. It remains to be seen if the incoming gov't proves as influential as Kallas' administration.