Politics in Estonia takes place in a framework of a parliamentary representative democratic republic, whereby the Prime Minister of Estonia is the head of government, and of a multi-party system. Legislative power is vested in the Estonian parliament. Executive power is exercised by the government, which is led by the prime minister. The judiciary is independent of the executive and the legislature. Estonia is a member of the United Nations, the European Union, and NATO.
History
The Estonian Declaration of Independence was issued on 21 February 1918. A parliamentary republic was formed by the Estonian Constituent Assembly and the first Constitution of Estonia was adopted on 15 June 1920. The Parliament of Estonia (State Assembly) elected a Riigivanem who acted both as Head of Government and Head of State. During the Era of Silence, political parties were banned and the parliament was not in session between 1934 and 1938 because the country was ruled by decree of Konstantin Päts, who was elected as the first President of Estonia in 1938. In 1938 a new constitution was passed and the Parliament of Estonia was convened once again, this time bicamerally, consisting of Riigivolikogu (lower house) and Riiginõukogu (upper house), both meaning State Council in direct translation. In 1940, Estonia was occupied by the Soviet Union. It was soon followed by the German occupation of 1941–1944. During the course of the two occupations, legal institutions, elected according to the Estonian constitution, were removed from power. In September 1944, after German forces left, legal power was briefly restored, as Otto Tief formed a new government in accordance with the 1938 constitution. The Tief government lasted for only five days, as Estonia was again occupied by the Soviet Union. Estonia declared restoration of independence in 1991 as the Republic of Estonia on the basis of continuity of the constitution prior to 1938, putting into motion the transition from a state socialist economy to a capitalist market economy; in 1992, the public approved a new constitution. On 1 May 2004, Estonia was accepted into the European Union. On 1 January 2011, Estonia joined the eurozone and adopted the EU single currency as the first former Soviet Union state.
Recent political developments The leader of the Reform Party Andrus Ansip was the Prime Minister of Estonia from 2005 until 2014. By the end of his nine-year tenure he was the longest-serving prime minister in the European Union. In August 2011, President of Estonia Toomas Hendrik Ilves, in office since 2006, was re-elected. In March 2014, after the resignation of Ansip, Taavi Rõivas of the Reform Party became new prime minister. 34-year-old Rõivas was the youngest prime minister in Europe at that time. In March 2015, the ruling Reform party, led by Prime Minister Taavi Rõivas, won the parliamentary election In October 2016, Estonian parliament elected Kersti Kaljulaid as the new President of Estonia. She was the first female president of Estonia. In November 2016, the new chairman of the Centre Party Jüri Ratas became the new Prime Minister of Estonia. He succeeded prime minister Rõivas whose government lost a parliamentary vote of no-confidence.
In the parliamentary election of 2019, five parties gained seats at Riigikogu. The head of the Centre Party, Jüri Ratas, formed the government together with Conservative People's Party and Isamaa, while Reform Party and Social Democratic Party became the opposition. On January 13, 2021, Ratas resigned as prime minister in the wake of a corruption scandal.
On 26 January 2021, Reform Party leader Kaja Kallas became Estonia's first female prime minister, making Estonia the only country in the world to currently be led by both a female President and Prime Minister. The new government was a two-party coalition between country's two biggest political parties Reform Party and Centre Party. However, Alar Karis was sworn in as Estonia's sixth President on October 11, 2021. In July 2022, Prime Minister Kaja Kallas formed a new three-party coalition by her liberal Reform Party, the Social Democrats and the conservative Isamaa party. Her previous government had lost its parliamentary majority after the center-left Center Party left the coalition.
In March 2023, the Reform party, led by Prime Minister Kaja Kallas, won the parliamentary election, taking 31,4% of the vote. Far-right Conservative People's Party came second with 16,1 % and the third was the Centre Party with 15% of the vote. In April 2023, Kallas formed her third government, which included, in addition to Reform Party, also the liberal Estonia 200 and the Social Democratic (SDE) parties. In July 2024, Kristen Michal became Estonia's new prime minister to succeed Kaja Kallas, who resigned as prime minister on July 15 to become the European Union's new High Representative of the Union for Foreign Affairs and Security Policy.
According to the V-Dem Democracy indices, Estonia was, in 2024, the 2nd most electoral democratic country in the world.
Institutions
The framework for the political institutions of Estonia is provided by the Constitution of Estonia (). The constitution follows the principle of separation of powers. Legislative power is wielded by the Parliament, executive power by the Government and judicial power by the courts. Each institution is further defined by their respective legislative acts.
Parliament
The Riigikogu is the representative legislative authority of the Republic of Estonia. It comprises 101 members who are elected at free elections for a four-year term according to the principle of proportional representation. The work of the Parliament is coordinated by the Board of the Riigikogu, which is led by the President of the Riigikogu and is elected for a term of one year. There are also factions within the Parliament, which carry out the programmes of their respective political parties. The work of the Parliament is supported by various committees, which are staffed by members of the factions. They prepare draft legislation and exercise parliamentary control over their fields of activity. The Chancellery of the Riigikogu is tasked with servicing the Parliament. It is headed by the Secretary General of the Riigikogu, who is appointed by the Board of the Riigikogu. Legislation is passed by an open majority vote. The quorum for the Parliament is provided in the Riigikogu Rules of Procedure and Internal Rules Act.
Citizens of Estonia who are at least 21 years of age and are eligible to vote may stand to be elected to the Parliament of Estonia. Citizens who are at least 18 years of age and are not convicted of a criminal offence have the right to participate in the voting for the Parliament of Estonia. Elections are called by the President of the Republic. After the election of the Parliament, the first sitting is convened by the President of the Republic, where the members of the Parliament will take an oath of office and then elect the President and Vice Presidents of the Parliament. After the election of the President and Vice Presidents, who are nominated by members of the Parliament, the Prime Minister announces the resignation of the Government so a new one could take its place. The procedure of elections is defined in the Riigikogu Election Act.
Head of State
The President is the head of state of the Republic of Estonia and serves as the highest representative of the state. Furthermore, the President can have limited participation in legislation by issuing decrees, resolutions and directives. Presidential legislation is administered by the Government of the Republic. In addition, the President can refuse to proclaim a law and return it to the Parliament for review. The President is assisted by the Office of the President, which is managed by the Head of the Office of the President. There are also several institutions under the jurisdiction of the President. These include: President's Academic Advisory Board, Roundtable on Regional Development, Estonian Memory Institute, Cultural Foundation of the President, Estonian Cooperation Assembly and National Defence Council. The mandate of the President is determined by the President of the Republic Work Procedure Act.
The President is elected by the Parliament of Estonia for a five-year term, but no more than two terms. If the Parliament does not secure at least two-thirds of the votes after three rounds of balloting, then an Electoral College (made up of the Parliament and representatives of local authority councils) elects the president, choosing between the two candidates with the largest percentage of votes. The President candidate is nominated with at least one-fifth support by members of the Parliament. Candidates have to be citizens of Estonia by birth and at least 40 years of age. The procedure for election of the President is provided in the President of the Republic Election Act. The President of the Riigikogu can also perform the duties of the President of the Republic in cases outlined in the constitution.
Government
The Government of the Republic () is the executive authority of the Republic of Estonia. Its main task is governing the state and implementing policies. It comprises the Prime Minister of Estonia and ministers, who also serve as representatives in the Council of the European Union. The Prime Minister is the head of Government who represents the institution and directs its activities. Different areas of government are managed by various ministries, each of which is headed by a minister. Ministries are further divided into departments, divisions and bureaus. The work of the ministry is managed by a secretary general, who is recommended by the minister and appointed by the Government. Executive power is also exercised by executive agencies and inspectorates under the authority of a ministry. The Government of the Republic is assisted by the Government Office, which is led by the State Secretary. The State Secretary is appointed by the Prime Minister. The activities and organisation of the Government is regulated in the Government of the Republic Act.
After the appointment of the Parliament, the Prime Minister candidate is nominated by the President. The Parliament then decides whether to authorise the candidate to form the Government. If approved, the candidate presents a list of members of the Government to the President, who appoints the Government within three days. The Government of the Republic assumes office by taking an oath before the Parliament.
Central Bank
The Bank of Estonia () is the central bank of the Republic of Estonia. Its mission is to maintain the stability of the Estonian financial system. It administers the circulation of currency, implements monetary policy, advises the Government and reports to the Parliament. However, it operates independently of other national government agencies. It is a member of the European System of Central Banks and may receive instructions from the European Central Bank. It is overseen by the supervisory board, which includes a chairman together with seven members. The chairman of the supervisory board is recommended by the President and appointed by the Parliament for a term of five years. The Bank of Estonia is headed by the Governor of the Bank of Estonia, who is recommended by the supervisory board and appointed by the President for a term of five years, but no more than one consecutive term. The Governor is also the chairman of the executive board, which is responsible for planning and organising the work of the institution. Furthermore, the Governor represents the Republic of Estonia in the Board of Governors of the International Monetary Fund. The Bank of Estonia is governed by strict confidentiality rules regarding banking secrets. The organisation and activities of the Bank of Estonia is regulated by the Bank of Estonia Act.
National Audit Office