PM Andrus Ansip has handed President Toomas Hendrik Ilves his letter of resignation, which according to Estonian law means that the entire government has resigned, and will leave office once a new cabinet has been assembled and approved by Parliament.
Ansip confirmed speculation on February 23, saying he will resign on March 4, to allow the new head of cabinet to make his, or her, mark on the nation before the 2015 parliamentary election.
The President has 14 days to name a candidate to succeed Ansip, who will then need Parliament's approval to form the next cabinet.
EU Commissioner Siim Kallas is heavily favored to succeed Ansip, having received the backing of his party, the Reform Party, which holds the highest number of seats in Parliament. The Reform Party's (33 seats out of 101 in Parliament) coalition partner in government, if President Ilves asks Kallas to lead negotiations, is likely to be either the Social Democrats (19 seats) or IRL (22 seats), their current partner.