Helsinki, Jun 11 (AP) A small conservative opposition party whose support is seen crucial in attempts to form a majority government in Estonia following the breakup of the governing centre-right coalition earlier this month said Saturday that it will start power-sharing talks with two other parties.

After several days of speculation, the Isamaa — or “Fatherland” — party said it is would start talks to form a government coalition in the Baltic country with the opposition Social Democratic Party and governing centre-right Reform Party led by Prime Minister Kaja Kallas.

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On June 3, Estonian President Alar Karis on June 3 dismissed — at the request of Kallas — the ministers of the Centre Party from the two-party Cabinet following a dispute over welfare policy amid Estonia's rampant inflation that is currently one of the highest in the eurozone.

The move left Kallas' Reform Party party, which has 34 seats in the 101-seat Parliament, to govern alone in a minority Cabinet.

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Reform, the Social Democrats and the Isamaa party would together muster a comfortable 56-seat majority at the Riigikogu legislature.

Kallas praised Isamaa's decision and said she hoped the parties would move forward rapidly to form a coalition in the next few weeks.

“The three parties have a strong common ground in creating a government that will bring Estonia through crises, strengthen our security and give people a sense of economic security,” Kallas said in a Facebook post.

Kallas has led her party since 2018 and became prime minister of Estonia, a nation of 1.3 million, in 2021.

The new government will be short-lived as Estonia is scheduled to hold a general election in March. (AP)

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