"I sincerely thank the Conservative People's Party of Estonia, Isamaa, and Estonian Centre Party for their cooperation and contributions since the government took office. I am also sincerely grateful to the people of Estonia for their support and feedback, which is important for every government," said Ratas.

"During its term, the current government has accomplished significant goals and made remarkable progress in improving life in Estonia. These include, for example, the two extraordinary pension increases, raising research and development funding to 1 per cent of our GDP, and the successful negotiations on the EU's next long-term budget and the recovery plan for Europe. The biggest civil crisis in reindependent Estonia, the coronavirus crisis, and the first emergency situation in the spring also demanded a great contribution and dedicated work from all of us.

"The coming months and years will pose significant challenges for the new government in resolving the ongoing health and economic crisis and improving the lives of our people and the country as a whole. People in all corners of Estonia must feel that our lives are getting better each day." 

The resigned government will continue its activities until a new government assumes office but will avoid making any decisions of principle or decisions increasing the expenditure of the state budget, unless it is strictly necessary.

On Wednesday, the prime minister notified President Kersti Kaljulaid and the Riigikogu of his resignation on his own initiative.

Following the Constitution of the Republic of Estonia, the president has two weeks to appoint a candidate for prime minister and give them the task of forming a new government, which President Kersti Kaljualid did on Thursday by appointing Reform Party chairman Kaja Kallas.

Within fourteen days, the candidate for prime minister must presents the principles of forming a new government to the Riigikogu, after which the Riigikogu decides whether to authorise the candidate for prime minister to form the government or not.

Having received the authority, the candidate for prime minister has seven days to present the membership of the government to the president, who then appoints the government to office within three days.

The Government assumes office by taking an oath before the Riigikogu.

The coalition government of the Centre Party, the Conservative People's Party of Estonia and Isamaa, led by Prime Minister Jüri Ratas during his second term as prime minister, assumed office on April 29, 2019.

Ratas also led the previous government coalition as the prime minister, which in addition to the Centre Party also included the Social Democratic Party and Isamaa (23 November 16 – 29 April 2019).

I have officially announced my decision to resign, which will lead to the resignation of the entire government. It has been an honour to serve as the PM of . I am sincerely grateful to all people for their support. I want to thank all friends & partners abroad for close co-op.

— Jüri Ratas (@ratasjuri) January 14, 2021

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