TALLINN — Estonia’s two biggest political parties clinched a deal on Sunday to form a new government to be led by a female prime minister for the first time in the Baltic country’s history, replacing the previous Cabinet that collapsed following a corruption scandal earlier this month.

The party councils of the opposition, center-right Reform Party and the ruling left-leaning Centre Party voted in favor of joining a Cabinet headed by Reform’s prime minister-designate and chairwoman Kaja Kallas.

Both parties are set to have seven ministerial portfolios in addition to Kallas' prime minister post in the 15-member government, which would muster a majority at the 101-seat Riigikogu Parliament.

A joint statement said the Reform Party and the Centre Party “will form a government that will continue to effectively resolve the COVID-19 crisis, keep Estonia forward-looking and develop all areas and regions of our country.”

Earlier this month, President Kersti Kaljulaid, who is expected to appoint Kallas’ Cabinet in the next few days, said tackling Estonia’s worsening coronavirus situation and the economic turmoil caused by the pandemic should be an immediate priority for the new government.

Kaljulaid, Estonia's first female head of state since 2016, tasked Kallas to form the government as her pro-business and pro-entrepreneurship Reform Party emerged as the winner of Estonia’s March 2019 general election.

Pending approval from lawmakers, Kallas, 43, will become the first female head of government in the history of the small Baltic nation of 1.3 million, which regained its independence amid the fall of the Soviet Union in 1991.

A lawyer and former European Parliament lawmaker, she is the daughter of Siim Kallas, one of the Reform Party’s creators, a former prime minister and a former European Union commissioner.

Her first Cabinet will see women in other key positions too as Reform's Keit Pentus-Rosimannus takes over the finance minister post and diplomat Eva-Maria Liimets becomes the foreign minister.

The government formation marks the second such attempt for Kallas in less than two years as she failed to bring about a Reform Party-led government after the 2019 election. That paved the way for the arch-rival Centre Party and its leader, Juri Ratas, to form a three-party coalition without the Reform Party.

Ratas and his Cabinet resigned on Jan. 13 over a scandal involving a key official at his Centre Party suspected of accepting a private donation for the party in exchange for a political favor on a real estate development at the harbor district of the capital, Tallinn.

Estonia’s prime minister since November 2016, Ratas won't be part of the new Cabinet. Local media reported earlier that he could become the parliamentary speaker in March.Estonia has been a member of the European Union and NATO since 2004. — Euronews