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Estonian Reform Party

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Estonian Reform Party

The Estonian Reform Party (Estonian: Eesti Reformierakond) is a liberal political party in Estonia. The party has been led by Kristen Michal since 2024. It is colloquially known as the "Squirrel Party" (Estonian: Oravapartei) or as "the Squirrels" (Estonian: oravad), referencing its logo.

It was founded in 1994 by Siim Kallas, then-president of the Bank of Estonia, as a split from Pro Patria National Coalition Party. As the Reform Party has participated in most of the government coalitions in Estonia since the mid-1990s, its influence has been significant, especially regarding Estonia's free-market and low-taxation policies. The party has been a full member of Liberal International since 1996, having been an observer member between 1994 and 1996, and a full member of the Alliance of Liberals and Democrats for Europe (ALDE). Reform Party leaders Siim Kallas, Taavi Rõivas, Andrus Ansip, Kaja Kallas and Kristen Michal have all served as prime ministers of Estonia. From 11 March 2025, the party has been the senior member in a coalition government with Estonia 200.

The Estonian Reform Party was founded on 18 November 1994, joining together the Reform Party – a splinter from the Pro Patria National Coalition (RKEI) – and the Estonian Liberal Democratic Party (ELDP). The new party, which had 710 members at its foundation, was led by Siim Kallas, who had been president of the Bank of Estonia. Kallas was not viewed as being associated with Mart Laar's government and was generally considered a proficient central bank governor, having overseen the successful introduction of the Estonian kroon. The party formed ties with the Free Democratic Party of Germany, the Liberal People's Party of Sweden, the Swedish People's Party of Finland, and Latvian Way.

Siim Kallas was leader of the Reform Party from 1994 to 2004. He was Prime Minister of Estonia from 2002 to 2003. In the party's first parliamentary election in March 1995, it won 19 seats, catapulting it into second place, behind the Coalition Party. Tiit Vähi tried to negotiate a coalition with the Reform Party, but the talks broke down over economic policy, with the Reform Party opposing agricultural subsidies and supporting the maintenance of Estonia's flat-rate income tax. While the Coalition Party formed a new government with the Centre Party at first, a taping scandal involving Centre Party leader Edgar Savisaar led to the Reform Party replacing the Centre Party in the coalition in November 1995. Kallas was appointed as Minister of Foreign Affairs, with five other Reform Party members serving in the cabinet. The Reform Party left the government in November 1996 after the Coalition Party signed a cooperation agreement with the Centre Party without consulting them.

At the 1999 election, the Reform Party dropped one seat to 18, finishing third behind the Centre Party and the conservative Pro Patria Union. The ER formed a centre-right coalition with the Pro Patria Union and the Moderates, with Mart Laar as Prime Minister and Siim Kallas as Minister of Finance, and with Toomas Savi returned as Speaker. Although the coalition was focused on EU and NATO accession, the Reform Party successfully delivered its manifesto pledge to abolish the corporate tax, one of its most notable achievements. After the October 1999 municipal elections, the three parties replicated their alliance in Tallinn.

The party served in government again from March 1999 to December 2001 in a tripartite government with Pro Patria Union and People's Party Moderates, from January 2002 to March 2003 with the Estonian Centre Party, from March 2003 to March 2005 with Res Publica and People's Union, from March 2005 to March 2007 with the Centre Party and People's Union, from March 2007 to May 2009 with the Pro Patria and Res Publica Union and the Social Democratic Party. From May 2009 the Reform Party was in a coalition government with the Pro Patria and Res Publica Union.

Andrus Ansip was Prime Minister of Estonia from April 2005 to March 2014. After the 2007 parliamentary election the party held 31 out of 101 seats in the Riigikogu, receiving 153,040 votes (28% of the total), an increase of +10%, resulting in a net gain of 12 seats.

Following the resignation of Andrus Ansip, a new cabinet was installed on 24 March 2014, with Taavi Rõivas of the Reform Party serving as Prime Minister in coalition with the Social Democratic Party (SDE).

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