Estonian President Alar Karis on July 16 appointed Kristen Michal, the sitting climate minister and a Reform Party member, to spearhead the formation of a new government. The announcement was made during a meeting at the presidential palace in Tallinn.

After consultations with various parliamentary party leaders on July 15, Karis said that many showed interest in the prime minister role. However, he pointed out that the most viable coalition currently would be among the Reform Party, the Social Democrats and Estonia 200.

“My discussions with the heads of the parties represented in the Riigikogu made it clear to me that given the current balance of power in national politics, the coalition of the Reform Party, the Social Democrats and Estonia 200 has the best chance of forming what will hopefully be a decisive government, and one with a strong parliamentary majority," Karis said, according to a statement from the presidency on July 16.

"The parties must not get bogged down in the promises they made ahead of the last parliamentary elections more than a year ago. The reality today means that some of those plans will have to be set aside or reassessed. My talks with the heads of the potential governing parties reassured me that they see things the same way," he added. 

Michal expressed confidence to Karis that the coalition partners are ready and aware of the gravity of the current situation. After the public segment, the press was asked to leave, and the discussion between the president and Michal continued in private, ERR.ee, the website of Estonia’s national broadcaster ERR, reported.

As reported by bne IntelliNews, this development follows the resignation of Kaja Kallas, who led as prime minister for three and a half years and has now been nominated as the European Union's high representative for foreign affairs and security policy. The Reform Party had earlier selected Michal as their candidate for prime minister on June 29. Michal is also vying for the position of chairman of the Reform Party at the upcoming general assembly on September 8.