Estonian Premier Resigns Over Corruption Probe Into Ruling Party

Estonia’s prime minister quit over a corruption investigation into his ruling party, paving the way for a revamped coalition government to take charge in the European Union and euro-area country.

Juri Ratas posted his resignation around 3 a.m. local time on Facebook, hours after prosecutors said his Centre Party was suspected of influence-peddling. The case concerns a real-estate project that received a 39 million-euro ($48 million) government loan in July.

The premier’s exit marks the end of a rocky two years in power for the ruling alliance, which includes the far-right EKRE party that’s triggered repeated scandals at home and abroad. Ratas will stay on at the helm of a caretaker government until the formation of a new coalition, which is unlikely to feature the populists from EKRE.

The “most feasible option” is for a more traditional government lineup to emerge led by the business friendly Reform Party, according to Martin Molder, a researcher at Tartu University’s Johan Skytte Institute of Political Studies. The Isamaa and Social Democrat parties would be its most likely allies, he said by phone.

Ratas, who’s held his position since 2016, said he was stepping down to allow an “undisturbed” investigation. He said he hasn’t made “any malicious or deliberately wrong decisions,” and that he’s been given assurances by prosecutors and the police that he’s not under investigation.

Five individuals are suspects in the case, including the Centre Party’s secretary general and a businessman who’s linked to the Porto Franco development project and alleged to have offered political donations in exchange for favorable decisions, according to a statement from prosecutors and police late Tuesday.

An adviser to Finance Minister Martin Helme, who heads EKRE, is also suspected of accepting a bribe for helping the businessman get more favorable terms on the project’s government loan.

(BLOOMBERG)