HELSINKI (AP) — Estonia’s Prime Minister Kaja Kallas has stepped down as the leader of the Baltic country to become the foreign policy chief of the European Union later this year.
Kallas, Estonia’s first female prime minister, handed in her formal resignation to President Alar Karis during a brief meeting at the Presidential Palace in the capital, Tallinn, on Monday.
Click to Gallery
Estonia's Prime Minister Kaja Kallas smiles during her arrival at the NATO summit in Washington, Wednesday, July 10, 2024. (AP Photo/Matt Rourke)
Estonia's Prime Minister Kaja Kallas smiles during her arrival at the NATO summit in Washington, Wednesday, July 10, 2024. (AP Photo/Matt Rourke)
Estonia's Prime Minister Kaja Kallas speaking to members of the media at the NATO summit in Washington, Wednesday, July 10, 2024. (AP Photo/Matt Rourke)
Estonia's Prime Minister Kaja Kallas speaks during her arrival at the NATO summit in Washington, Thursday, July 11, 2024. (AP Photo/Mark Schiefelbein)
Estonia's Prime Minister Kaja Kallas prepares to speak during her arrival at the NATO summit in Washington, Thursday, July 11, 2024. (AP Photo/Mark Schiefelbein)
Estonia's Prime Minister Kaja Kallas speaks during her arrival at the NATO summit in Washington, Thursday, July 11, 2024. (AP Photo/Mark Schiefelbein)
Estonia under Kallas, 47, has been one of Europe’s most vocal backers of Ukraine following the full-scale Russian invasion in February 2022. She replaces Josep Borrell of Spain, who has served as the EU foreign policy chief since 2019.
Summing up Kallas’ 3 1/2 years at the helm of the nation of 1.3 million, Karis said in a statement that “it has been a time full of crises, the milestones (such as) the coronavirus, the economic recession and the war in Europe, when Russia destroyed our previous security picture with its aggression in Ukraine”.
The prime minister’s move automatically triggered the resignation of Kallas’ three-party coalition Cabinet, made up of her center-right Reform Party, the Social Democratic Party and the liberal Estonia 200 party. It will continue as a caretaker government until the new Cabinet is sworn in, most likely in early August.
In the last meeting of the outgoing Cabinet on Monday, Kallas underscored her government’s efforts to boost the security of Estonia, a NATO member that neighbors Russia.
“We have invested more in national defense than ever before and increased the annual defense budget to 1.4 billion euros (about $1.5 billion), which is 3% of GDP,” Kallas said, adding that in the past two years, the state defense budget has increased by nearly 70%. “These decisions help to ensure that Estonia is firmly protected and a safe place to live.”
The Reform Party announced on June 29 that it chose party veteran and Climate Minister Kristen Michal as the prime minister candidate to replace Kallas who represented Estonia at a NATO summit in Washington last week. Under Kallas' leadership, Reform scored an overwhelming victory in the 2023 general election and holds a mandate to the prime minister post.
The Cabinet's composition is likely to remain the same but Michal, who is set to succeed Kallas also as the Reform Party's chair, is currently holding talks with both the Social Democrats and the Estonia 200 to revise the current 4-year government program the three parties had originally agreed last year.
Michal’s nomination for Estonia's top job will have to be approved by Karis and the 101-seat parliament, or Riigikogu, where the coalition holds a comfortable majority. He has been serving as the minister for climate affairs since April last year. The 49-year-old former economics and justice minister has been active in the Reform Party, Estonia’s key political establishment, since the late 1990s.
Michal is known for a long and acclaimed political career focused on Estonia’s internal affairs but lacks international experience — almost the complete opposite of Kallas who has excelled in international arenas but was clearly out of her comfort zone when it came to domestic politics, leading to a major dip in her popularity among Estonians over the past year.
Estonia's Prime Minister Kaja Kallas smiles during her arrival at the NATO summit in Washington, Wednesday, July 10, 2024. (AP Photo/Matt Rourke)
Estonia's Prime Minister Kaja Kallas smiles during her arrival at the NATO summit in Washington, Wednesday, July 10, 2024. (AP Photo/Matt Rourke)
Estonia's Prime Minister Kaja Kallas speaking to members of the media at the NATO summit in Washington, Wednesday, July 10, 2024. (AP Photo/Matt Rourke)
Estonia's Prime Minister Kaja Kallas speaks during her arrival at the NATO summit in Washington, Thursday, July 11, 2024. (AP Photo/Mark Schiefelbein)
Estonia's Prime Minister Kaja Kallas prepares to speak during her arrival at the NATO summit in Washington, Thursday, July 11, 2024. (AP Photo/Mark Schiefelbein)
Estonia's Prime Minister Kaja Kallas speaks during her arrival at the NATO summit in Washington, Thursday, July 11, 2024. (AP Photo/Mark Schiefelbein)
BIRMINGHAM, Ala. (AP) — On a day when stock markets around the world dropped precipitously, Alabama Republican Party Chairman John Wahl led a celebration of the president whose global tariffs sparked the sell-off.
With no mention of the Wall Street roller coaster and global economic uncertainty, Wahl declared his state GOP’s “Trump Victory Dinner” — and the broader national moment — a triumph. And for anyone who rejects President Donald Trump, his agenda and the “America First” army that backs it all, Wahl had an offer: “The Alabama Republican Party will buy them a plane ticket to any country in the world they want to go to.”
Wahl's audience — an assembly of lobbyists and donors, state lawmakers, local party officials and grassroots activists — laughed, applauded and sometimes roared throughout last week's gala in downtown Birmingham, the rare Democratic stronghold in one of the nation’s most Republican states. The president’s son Donald Trump Jr. elicited perhaps the most enthusiasm with an unapologetically partisan pitch, even repeating the lie that his father won the 2020 election over Democrat Joe Biden.
Yet beyond the cheerleading, there were signs of a more cautious optimism and some worried whispers over Trump’s sweeping tariffs, the particulars of his deportation policy and the aggressive slashing by his Department of Government Efficiency.
That doesn’t mean Trump or Republicans are in danger of losing their grip in Alabama, where the GOP holds all statewide offices, dominates the Legislature and has won every presidential electoral vote since 1980. But it’s a notable wrinkle in a place where there's long been tension between relying on the federal government for funding and jobs, and an embrace of the kind of anti-Washington, anti-establishment populism that has twice propelled Trump to the Oval Office. And any cracks for Trump in Alabama — where he got 65% of the vote in 2024 — could portend trouble elsewhere, as the effects of a seismic shift in U.S. policy reach across the economy and society.
“There are some concerns, some conversations,” said John Merrill, a former secretary of state, over just what Trump’s agenda will mean on the ground. Alabama, he acknowledged, has “been a net recipient” of the very federal government and economic model Trump is upending, meaning it receives more money back from Washington than its taxpayers send the federal government.
“It’s a big risk,” said Merrill, who sported a Trump 45-47 pin on his lapel, a nod to the president's two terms.
Blocks to the south of the complex where Republicans convened sits the multibillion-dollar University of Alabama at Birmingham health system, a regional gem where research depends on grants from the National Institutes of Health.
Republican Alabama Attorney General Steve Marshall, listed as a “Silver Sponsor” of the gala, didn't join the Democratic attorneys general suing the Trump administration to stop the cancellation of certain research funding streams Congress already has approved.
Most of the medical services provided at UAB and many other hospitals throughout the state are covered by Medicare and Medicaid, two of the largest federal outlays. Alabama, because its per-capita income ranks among the lower tier among states, has one of the most generous federal match rates for Medicaid funding.
A short drive west toward Tuscaloosa sits a gargantuan Mercedes-Benz complex, one of the earliest examples of foreign auto manufacturers coming to the American South, where state laws are hostile to organized labor. The plants have provided jobs at wages higher than the local norms but in some cases lower than in union shops of the Great Lakes region around Detroit. Many suppliers have followed in the South, but not so many that the assembly plants don’t still import many parts that now will be subject to Trump’s tariffs.
Terry Martin, a county GOP committeeman in Tallapoosa County, said he supports the tariffs as leverage. Trump has “something to bargain with,” Martin said. But, “the parts that are coming from overseas … it’s going to pop it up” in price, he said, at least in the short term.
Agriculture, meanwhile, is still a dominant Alabama industry. Meat processing plants in the North and row crop farms in the South depend on migrant labor that Merrill, the former secretary of state, said involves workers who are in the U.S. both legally and illegally. Alabama, he recalled, passed its own strict immigration bill during Barack Obama's presidency only to roll it back after industry leaders complained of a depleted workforce.
Wahl, in an interview after the gala, took a more nuanced approach than he did at the podium.
“It is possible to secure our border and still take into account migrants who deserve to be here,” he said. “This has to be a two-pronged approach.”
Back in Birmingham, Interstate 65 splits the city. The aging, increasingly congested artery is a local priority for widening. The proposal has support from Alabama's two Republican senators, Tommy Tuberville and Katie Britt. U.S. interstate projects, though, are typically a 90-10 split, meaning 90% of the money comes from Washington, 10% from the state.
That funding — along with money for schools, Medicaid and other areas — could be at risk with Trump adviser Elon Musk and DOGE carrying Trump’s blessing to slash spending. GOP lawmakers who control Congress have supported Trump's agenda, which also includes dismantling the Education Department.
Tallapoosa County GOP Chair Denise Bates said “absolutely” there's a possibility DOGE could go too far. “I hope there are guardrails,” she said, noting she was once a local school board member.
“Am I 100% for getting rid of the Department of Education? I can’t say that I am,” she said, adding a phrase similar to Merrill’s description of the state as a whole. “You know, we’re a net receiver.”
Yet for all the caveats offered in one-on-one conversations, the GOP crowd cheered when Tuberville, the former football coach turned Trump acolyte on Capitol Hill, offered a plainspoken defense of Musk and his pop-up agency, telling the crowd, “We're dead broke.” And they roared as he addressed tariffs.
“It's past time we level the playing field and tell the rest of the world to get off their ass and start paying their fair share,” Tuberville said.
Bates argued that Alabama's embrace of Trump's “America First” push is not simply loyalty to the president. She said it reflects generations of voters watching the steel industry decline in Birmingham and, after the North American Free Trade Agreement was enacted in 1994, the textile industry leaving for Mexico and, eventually, Southeast Asia.
“We just want jobs,” she said.
Still, state Sen. Jabo Waggoner, the longest-serving member of the Alabama Legislature, made clear Trump's visceral appeal, declaring him “the most popular president here since Ronald Reagan, hands down.”
Wahl recalled Trump’s first massive outdoor rally as a presidential candidate: 30,000 people at Ladd-Peebles Stadium in Mobile, Alabama, in August 2015.
Wahl, who owns a butterfly farm outside Huntsville, said perhaps the best way to understand Trump and Alabama and this moment of uncertainty is to see a president who, at least to his supporters in the state, has earned the benefit of the doubt.
“He’s going to let everybody know he’s serious,” the chairman said. Trump is “going to bring people to the bargaining table. We’re actually going to see the negotiator conduct business.”
A guest looks over the program for Donald Trump Jr.'s visit to speak at the Alabama Republican Party's Trump Victory Celebration, Thursday, April 3, 2025, in Birmingham, Ala. (AP Photo/Butch Dill)
Alabama Sen. Jabo Waggoner, left, high fives a guest as they wait for Donald Trump Jr. to speak at the Alabama Republican Party's Trump Victory Celebration, Thursday, April 3, 2025, in Birmingham, Ala. (AP Photo/Butch Dill)
Donald Trump Jr. speaks at the Alabama Republican Party's Trump Victory Celebration, Thursday, April 3, 2025, in Birmingham, Ala. (AP Photo/Butch Dill)
Alabama Republican Party Chair, John Wahl, speaks before Donald Trump Jr.'s visit at the Alabama Republican Party's Trump Victory Celebration, Thursday, April 3, 2025, in Birmingham, Ala. (AP Photo/Butch Dill)
Alabama Republican Party Chair, John Wahl, speaks before Donald Trump Jr.'s visit at the Alabama Republican Party's Trump Victory Celebration, Thursday, April 3, 2025, in Birmingham, Ala. (AP Photo/Butch Dill)
