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Significance

Kallas, who expects to take up the post of EU foreign policy chief, leaves behind a struggling economy and an unpopular government. Nonetheless, Michal’s government looks set to continue Kallas’s policies, hoping to kickstart economic growth and rein in the fiscal deficit.

Impacts

Estonia’s economy is expected to start recovering in 2025.

The introduction of university fees and cuts to public administration are areas of potential discord within the coalition.

Dissatisfaction among the Russian minority may grow with the phasing out of Russian-language education.

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