Estonia will support Ukraine 'until victory', new PM says
Adds Zelenskiy congratulating Michal in paragraphs 6-7
By Janis Laizans and Andrius Sytas
TALLINN, July 23 (Reuters) -Estonia's incoming government will support Ukraine until "victory” in its war with Russia, Prime Minister Kirsten Michal told Reuters in an interview on Tuesday, pledging continuity on the issue with the former administration.
Michal, 49, has replaced Kaja Kallas, who recently resigned to become the European Union's foreign policy chief after emerging as one of the strongest critics of Russia and supporters of Ukraine in the European Union and NATO.
"We will support Ukraine until the victory of Ukraine in this war. We are in this for a long term, I hope our allies are too," Michal told Reuters after taking the oath of office.
"The message to our enemies is that Estonia is well-defended, we will increase our (defence) expenditure," he added.
The government of the Baltic nation of 1.4 million could seek to raise about one billion euros ($1.09 billion) to purchase ammunition for Estonia, under a plan that will be hatched out by September, Michal said.
Ukraine's President Volodymyr Zelenskiy congratulated Michal on Wednesday in a phone call, saying Estonia's commitment to keep supporting Ukraine with 0.25% of its gross domestic product (GDP) "serves as an excellent example for other partners".
Michal "reaffirmed continued support for Ukraine's path towards EU and NATO membership", Zelenskiy posted on X.
MAIN FOCUS
Tackling stalling growth is another priority, after about nine to 10 quarterly declines in gross domestic product, Michal told Reuters.
Estonia's export-driven economy has been hit by weak demand in its main trading partners, as well as a decline in its energy producing sector which has become uncompetitive, according to an analysis from Sweden's Swedbank. The bank expects the economy to pick up next year as its exports recover.
"This is the main focus of the government", said Michal.
An updated agreement with its coalition partners, suggests the parties may raise taxes and cut government spending to reign in the deficit, which is projected at 3.4% of GDP in 2024, public broadcaster ERR said.
Michal is from the same liberal Reform party as Kallas and will lead his predecessor's centre-right majority coalition with the liberal Estonia 200 party and the Social Democrats.
Educated as a lawyer, Michal has climbed the ranks of the Reform party since 1996. He first entered parliament in 2004, and has led Justice Ministry, Economy Ministry and, most recently the Climate Ministry.
The next election in Estonia is scheduled for 2027.
($1 = 0.9213 euros)
Additional reporting by Yuliia Dysa in Kyiv; Writing by Andrius Sytas; Editing by Sharon Singleton, William Maclean
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
