Estonia's New PM Supports Ukraine 'Until Victory'

Estonian Tallin/UNSPLASH/Hongbin

JAKARTA - Estonia's new government will support Ukraine until its "victory" in its war with Russia, Prime Minister banyak Michal said.

Michal (49) replaces Kaja Kallas, who recently resigned to become head of EU foreign policy after appearing as one of Russia's strongest critics and supporters of Ukraine in the European Union and NATO.

"We will support Ukraine until Ukraine's victory in this war. We will support this for the long term, I hope our allies will too," Michal told Reuters after taking an oath of office.

"The message to our enemies is that Estonia has a good defense, we will increase our (restriction) spending," he added.

The government of the Baltic nation of 1.4 million people can seek to raise about one billion euros (1.09 billion US dollars) to buy ammunition, based on plans to be drawn up in September.

Overcoming stalled growth is another priority, after a decrease in gross domestic product of around nine to 10 quarters.

Estonia's export-driven economy has been hit hard by weak demand from its main trading partners, as well as a decline in the energy-producing sector that has become uncompetitive, according to an analysis from Sweden's Swedbank. The bank expects the economy to increase next year in line with its export recovery.

"This is the government's main focus," said Michal.

The agreement, which was renewed with its coalition partners, shows that the parties can raise taxes and cut government spending to control the deficit, which is projected at 3.4 percent of GDP by 2024, the ERR public broadcaster said.

Michal is from the same liberal reform party as Kallas and will lead its predecessor's centre-right majority coalition with the 200 Estonian liberal and Social Democrat parties.