TALLINN, March 24 (Xinhua) -- Estonia's ruling coalition has pledged to strengthen national defense by increasing military spending and reinforcing NATO's role in the country's security.
The incoming government's commitment was outlined in a new coalition agreement signed Monday. It also urges Europe and its allies to boost defense expenditures, according to a government press release.
The government, a coalition led by the Reform Party and Eesti 200, plans to raise Estonia's defense budget to 5 percent of GDP or 2 billion euros (2.2 billion U.S. dollars) annually.
On taxation, the agreement includes abolishing the 2 percent corporate income tax introduced as a "security tax" while increasing personal income tax and turnover tax by 2 percentage points.
Later on Monday, Prime Minister Kristen Michal will present the new cabinet members to the president, including several new ministers from both parties.
The government reshuffle comes after the three-party ruling coalition collapsed earlier this month, as the Reform Party and Eesti 200, which hold 52 of the 101 seats in the parliament, decided to stay in a two-party government without the Social Democrats. ■
