Executive branch:
chief of state: President Lennart MERI (since 5 October 1992)
head of government: Prime Minister Mart SIIMANN (since 12 March 1997)
cabinet: Council of Ministers appointed by the prime minister,
approved by Parliament
elections: president elected by Parliament for a five-year term; if
he or she does not secure two-thirds of the votes after three rounds
of balloting, then an electoral assembly (made up of Parliament plus
members of local governments) elects the president, choosing between
the two candidates with the largest percentage of votes; election
last held August-September 1996 (next to be held fall 2001); prime
minister nominated by the president and approved by Parliament
election results: Lennart MERI elected president by an electoral
assembly after Parliament was unable to break a deadlock between
MERI and RUUTEL; percent of electoral assembly vote—Lennart MERI
61%, Arnold RUUTEL 39%
Legislative branch: unicameral Parliament or Riigikogu (101 seats; members are elected by popular vote to serve four-year terms) elections: last held 5 March 1995 (next to be held 7 March 1999) election results: percent of vote by party—KMU 32.22%, RE 16.18%, K 14.17%, Pro Patria and ERSP 7.85%, M 5.98%, Our Home is Estonia and Right-Wingers 5.0%; seats by party—KMU 41, RE 19, K 16, Pro Patria 8, Our Home is Estonia 6, M 6, Right-Wingers 5
Judicial branch: National Court, chairman appointed by Parliament
for life
Political parties and leaders: Coalition Party and Rural Union or
SAVISAAR, chairman]; Union of Pro Patria or Fatherland League
ANDREJEV] made up of two parties: United People's Party and the
Russian Party of Estonia; note—Our Home is Estonia split when two
Russian Party of Estonia members withdrew; United People's Party
parties: Social Democratic Party or ESDP and Rural Center Party or
VEIDEMANN, chairwoman] (created by defectors from Center Party in
late spring 1996, Development Party faction split and now holds five
International organization participation: BIS, CBSS, CCC, CE,
EAPC, EBRD, ECE, EU (applicant), FAO, IAEA, IBRD, ICAO, ICFTU, ICRM,
IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, ISO (correspondent),
ITU, OPCW, OSCE, PFP, UN, UNCTAD, UNESCO, UNMIBH, UNTSO, UPU, WEU
(associate partner), WHO, WIPO, WMO, WTrO (applicant)
Diplomatic representation in the US:
chief of mission: Ambassador Grigore-Kaleu STOICESCU
chancery: 2131 Massachusetts Avenue NW, Washington, DC 20008
consulate(s) general: New York
Diplomatic representation from the US:
chief of mission: Ambassador Melissa WELLS
embassy: Kentmanni 20, Tallinn EE 0001
mailing address: use embassy street address
Flag description: pre-1940 flag restored by Supreme Soviet in May
1990—three equal horizontal bands of blue (top), black, and white
Economy
Economy—overview: Estonia's continued adherence to market reforms, disciplined fiscal and monetary policies, and a liberal free trade regime resulted in GDP growth in 1998 of 5.5% and a decrease in inflation to 6.5% from 11.2% in 1997. A high but slightly decreased current account deficit was estimated at 8.6%. The fall in GDP growth is largely due to the impact of Russia's financial crisis and reduced investment in emerging markets in the wake of the Asian financial crisis. Like other small emerging markets, Estonia will face difficulties in 1999 as a result of continuing fallout from Asia. Key events of 1998 were the start of official EU accession talks, banking sector consolidation—nine banks were reduced to five—and the important role that Swedish capital played in the large banks (Swedbank's acquisition of a majority stake in Hansapank has accounted for the large increase in foreign direct investment). The IMF urged Estonia to maintain a stable economy and good reputation in international markets and to avoid populist policies in the run-up to March 1999 parliamentary elections. The government completed restructuring of state-controlled Estonian Telecom, the sale of 49% of which will be the flagship privatization in 1999 and the largest public equity transaction in the Baltics. Estonia expects to join the World Trade Organization in 1999.