Kristen Michal

In summer 2026, Michal insisted on continuing cuts in the 2027 budget, while Kristina Kallas, leader of Eesti 200 and Education Minister, maintained that there was no further scope for reductions. The disagreement revealed a rift within an already narrow coalition.

State of the evidence

Documented

Attribution

Political responsibility

The successive departures of Kalev Stoicescu from Eesti 200 and Meelis Kiili from the Reform Party reduced Michal's coalition to 50 seats out of 101, causing it to lose its absolute majority just months before the 2027 elections.

State of the evidence

Documented

Attribution

Political responsibility

Following Nordica's bankruptcy, it emerged that a further €1.5 million tranche of a pre-existing credit facility had been paid in spring 2024, although Michal had stated that the state should no longer finance the company. Opponents accused him of minimising his role.

State of the evidence

Disputed

The two-percentage-point VAT increase associated with the security tax was initially due to end in 2028. In March 2025, Michal endorsed the Finance Minister's position that the higher rate would probably remain in place longer, potentially permanently.

State of the evidence

Documented

Attribution

Political responsibility

Isamaa, EKRE and the Centre Party tabled a no-confidence motion against Michal, accusing him of poor energy policy, tax increases, weak competitiveness and lack of transparency over Nordica.

State of the evidence

Documented

Attribution

Political responsibility

A Climate Ministry memorandum concluded that certain government claims about the economic effects and expected electricity price reductions from a 2.6-billion-euro offshore wind support scheme had been exaggerated or presented misleadingly.

State of the evidence

Documented

Michal announced the Social Democratic Party's removal from the coalition because of repeated disagreements over taxation and economic strategy, leaving the Reform Party and Eesti 200 with a very narrow majority.

State of the evidence

Documented

Attribution

Political responsibility

The vehicle tax's entry into force triggered strong opposition when some owners discovered very high registration fees, sometimes exceeding the value of older vehicles. The opposition promised to abolish the tax and accused Michal of increasing its revenue target.

State of the evidence

Documented

Attribution

Political responsibility

As Climate Minister, Michal helped design the vehicle tax while publicly criticising the Finance Ministry's initial formula, which he considered insufficiently linked to CO2 emissions. The proposal triggered substantial mobilisation, and the President refused to promulgate an initial version because of unequal treatment of disabled people.

State of the evidence

Documented

Attribution

Shared responsibility

Under the oversight of the Climate Ministry led by Michal, Nordica's losses worsened dramatically. He ordered a special audit, which identified mismanagement, poorly assessed expansion and insufficient analysis of investments.

State of the evidence

Documented

Attribution

Political responsibility

On becoming Prime Minister, Michal initiated a public spending reduction targeting approximately 10% over three years across most ministries, followed by more than one billion euros in cumulative savings over four years. Trade unions, public bodies and opposition parties condemned the consequences for public services and employment.

State of the evidence

Documented

Attribution

Political responsibility

The Michal government proposed a temporary security tax until 2028, initially comprising a two-percentage-point VAT increase, a 2% tax on individuals' income and a 2% tax on corporate profits to finance defence. The package met strong opposition because of the already high tax burden.

State of the evidence

Documented

Attribution

Political responsibility

During disruptions to the ferry connection with Hiiumaa in 2018, politicians attributed part of the problem to a decision taken under Michal in 2016 to favour trawling works rather than conventional dredging of the Rukki channel.

State of the evidence

Documented

The replacement of the previous ferry operator serving Saaremaa and Hiiumaa relied on four new vessels ordered for autumn 2016. Delivery delays forced the state to charter replacement vessels at a cost of several million euros and prompted criticism of the timetable's realism.

State of the evidence

Documented

Attribution

Political responsibility

The chief executive and a board member of the Port of Tallinn were arrested on suspicion of corruption and bribery. The case also highlighted close links between governance of the state-owned enterprise and Reform Party officials.

State of the evidence

Documented

Attribution

Political responsibility

Person targeted by the proceedings

des dirigeants du port de Tallinn

Role of the person profiled

Protagonist not prosecuted

The European Commission ruled that approximately 90 million euros in public aid granted to Estonian Air was incompatible with EU law, making repayment impossible for the airline and causing it to cease flying and enter bankruptcy. Michal was Economy Minister at the time of the decision and had to organise continuity of air connections.

State of the evidence

Documented

Former MP Silver Meikar claimed that he had received cash from Reform Party officials to donate in his own name, and stated that Michal, the party's former secretary-general who had become Justice Minister, was involved in the arrangement. Michal was questioned as a suspect.

State of the evidence

Allegations

Attribution

Accused