Estonia swears in new 'low tax' coalition

ESTONIA: The new mainly centre-right government of the Baltic state of Estonia was sworn in yesterday promising further tax …

ESTONIA:The new mainly centre-right government of the Baltic state of Estonia was sworn in yesterday promising further tax cuts.

Prime minister Andrus Ansip, coming for a second consecutive term as head of government after his Reform Party narrowly won the March 4th elections, took the oath of office in parliament.

He has formed a coalition with the conservative Pro Patria-Res Publica bloc and the Social Democrats, ditching former partner the Centre Party, which was second in the election.

The new coalition pledged in an agreement signed on Monday to cut income tax to 18 per cent from the current 22 per cent, to continue a tight budget policy and to make adopting the euro a priority.

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The government also wants to boost childbirth in the country of just 1.3 million people and has promised to give more parental benefits for longer.

Under the coalition deal signed earlier this week, Urmas Paet is set to continue as foreign minister and Rein Lang as justice minister. Both are members of the Reform Party.

Ivari Padar, chairman of the Social Democrats, will become finance minister, and former prime minister Juhan Parts becomes economy minister.

The coalition also said it wanted to support concrete and practical initiatives to develop relations with Russia, which have often been tense.

- (Reuters)