The Reform Party board on Tuesday morning approved former Estonian Defense Forces commander Martin Herem as its candidate for defense minister, current Minister of Economic Affairs and Industry Erkki Keldo as its candidate for minister of climate and energy and Estonian Business and Innovation Agency (EIS) board member Liina Vahtras as its candidate for minister of economic affairs and industry.

On September 11, ERR's Estonian-language news portal asked Keldo whether he could become the new climate minister. At the time, Keldo dismissed the claims as opposition spin. Vahtras' name was also mentioned in the article.

Reform Party chair and Prime Minister Kristen Michal said he made the offer to Herem following extensive discussions both within the party and with experts in the field.

"I decided to offer the position to Martin Herem in order to restore confidence in the defense sector amid the current security situation and put things in order at the Ministry of Defense in line with the recommendations of the National Audit Office. Just as importantly, with the current government having about six months left, Russia's aggression unfortunately means there is little time for someone to get up to speed in this field," Michal said.

According to Michal, Herem has the instincts in defense matters needed to ensure Russia's intentions do not go unnoticed and to prepare for new threats. "What is happening in Ukraine is providing a great deal of new knowledge and we need to learn from it without delay and put it to smart use. The new defense minister and I certainly see eye to eye on defense spending: Defense investment must remain at no less than 5 percent of GDP to ensure Estonia's defense," he added.

Speaking at Tuesday's press conference introducing the ministerial candidates, Herem said there are more things in good shape than in poor shape within the Ministry of Defense's area of responsibility, but that the latter need to be fixed.

"My role in this is primarily to help move the process that has already been launched forward, whether through attention, resources or, hopefully, by bringing a new perspective. And as I have said many times, I want to emphasize that it is not my job to change the threat assessment. That is done by people who know more than I do. But we need to measure our capability development against the threat assessment, both in terms of timing and scale," Herem said.

According to Herem, Estonia needs to take a broader approach to air defense than it has so far and accelerate the development of the Baltic Defense Line. "And that does not always mean immediately digging and completing everything. Rather, we need to plan with organizations, companies and allies what we will do when it needs to be done quickly," he said.

Keldo: It will not be an easy winter

Michal said the role of minister of climate and energy requires someone with previous government experience who likewise will not need time to get up to speed. "Erkki Keldo has been involved in all the discussions on energy. What's more, many of these issues, such as encouraging new investment and speeding up planning procedures, are directly related to his current ministerial portfolio. Erkki also has very good working relationships and personal contacts with business leaders," Michal said.

"One of the new minister's tasks this winter will be to work with businesses to find ways of reducing the impact of high global fuel prices in Estonia, including by using other energy sources instead of gas. In the longer term, steps to reduce the impact of fossil fuels must be accelerated. On the environmental protection side, the long-debated Climate Act must be passed together with the Riigikogu team. To provide clean and affordable energy, we need to remove as many obstacles as possible from wind energy planning and development. We also need to establish a nuclear regulator so we can move forward with our plan to give nuclear energy the opportunity to become part of Estonia's future energy mix," the prime minister said, listing the priorities.

Keldo said at the press conference that Estonia needs new energy generation capacity, particularly in the current situation, with fossil fuels facing strong price pressures due to the Strait of Hormuz crisis.

"If stable, affordable energy is available, industries offering highly competitive wages and better conditions can come here, making it possible for people to live outside Tallinn, Tartu or other major cities as well," he said.

Keldo said the coming winter would not be easy.

"Our task is to provide stability and see whether and to what extent extremely difficult global market prices can be stabilized through domestic measures. Everyone in Estonia also expects long-term stability in our energy mix — a rational, science-based justification for what kind of energy mix we need. I certainly want to work with experts to find a solution because energy does not need ideological slogans; it needs practical solutions," Keldo said.

Regarding Liina Vahtras, the candidate for minister of economic affairs and industry, Michal highlighted her private-sector experience at Nortal, Pipedrive and Tuum, as well as her work in recent years developing Estonia's e-residency program. Vahtras is also involved in driving the development of artificial intelligence in Estonia.

"Artificial intelligence could become a success story for Estonia comparable to the Tiger Leap. It is important to harness the opportunities offered by AI in Estonia so that many people benefit, rather than just a few. We will all be wealthier if society as a whole does better. There are also still many steps to take in the labor market in this area, so that young people can enter employment more quickly and equality and development are ensured," Michal said.

Vahtras said she wants to place greater emphasis on equal opportunities in the labor market.

"As the prime minister mentioned, there is the issue of youth unemployment and encouraging employers to hire young people without previous work experience. And, of course, having more women in management and entrepreneurship," she said.

Vahtras, who has extensive experience in the private sector, said that based on her experience, the state should intervene only where there is a market failure.

Vahtras has headed Estonia's e-residency program since June 2023. She previously helped oversee the management and development of growth strategies at technology companies Pipedrive and Tuum, headed marketing and communications at Nortal, and advised Prime Minister Taavi Rõivas on strategy and e-government issues. From 2007 to 2010, Vahtras worked as an adviser in Prime Minister Andrus Ansip's office.

Vahtras has joined the Reform Party and will run in the Riigikogu elections in March.

The article was updated to add comments from the new ministers.

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