Tiit Vähi
Encyclopedia
Tiit Vähi is an Estonia
Estonia
Estonia , officially the Republic of Estonia , is a state in the Baltic region of Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia , and to the east by Lake Peipsi and the Russian Federation . Across the Baltic Sea lies...

n politician, Prime Minister of Estonia
Prime Minister of Estonia
The Prime Minister of Estonia is the head of government of the Republic of Estonia. The prime minister is nominated by the President after appropriate consultations with the parliamentary factions and confirmed by the Parliament. In case of disagreement, the Parliament can reject the President's...

 from 1995 to 1997, and acting Prime Minister
Acting Prime Minister
An acting Prime Minister is a Cabinet member who is serving the role of prime minister, whilst the individual who normally holds the position in unable or unwilling to do so. The role of Acting Prime Minister is often performed by the Deputy Prime Minister...

 for several months during 1992 under the transitional government.

Born in Valga, Estonia, Vähi graduated from the Tallinn Technical University with a degree in Engineering. From the time of his graduation until 1992, he served in several top managerial post with the Valga Trucking Company.

During the Estonian national independence movement, Vähi was among the organisers of the Estonian Popular Front, and led its regional committee in Valga County
Valga County
Valga County , or Valgamaa, is one of 15 counties of Estonia. Its capital is Valga, which is located on the Estonian-Latvian border. It is situated in southern part of the country and borders Põlva County and Võru County to the east, Latvia to the south and to the west, Viljandi County and Tartu...

. In 1989, he was appointed Minister for Transport and Communications, a post that he held until January 1992. During his tenure as Transport Minister, he forged close ties with the transport ministries of the Nordic countries
Nordic countries
The Nordic countries make up a region in Northern Europe and the North Atlantic which consists of Denmark, Finland, Iceland, Norway and Sweden and their associated territories, the Faroe Islands, Greenland and Åland...

 and improved relations with the other two Baltic States
Baltic states
The term Baltic states refers to the Baltic territories which gained independence from the Russian Empire in the wake of World War I: primarily the contiguous trio of Estonia, Latvia, Lithuania ; Finland also fell within the scope of the term after initially gaining independence in the 1920s.The...

 on transport related issues. He transferred control of Estonia's airports, railways and sea ports, under the control Moscow, to the Estonian authorities.

Shortly after Estonia's return to independence in 1991, Vähi was appointed as the Government's special representative to north-eastern Estonia, a region inhabited by a majority of ethnic Russians
Russians
The Russian people are an East Slavic ethnic group native to Russia, speaking the Russian language and primarily living in Russia and neighboring countries....

.

On 30 January 1992, Vähi became the second post-Soviet
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

 Prime Minister of Estonia, succeeding Edgar Savisaar
Edgar Savisaar
Edgar Savisaar , is an Estonian politician, one of the founding members of Popular Front of Estonia and the leader of the Centre Party. He has served as the acting Prime Minister of Estonia, Minister of Internal affairs and Minister of Economic Affairs and Communications...

. During this first stint as Prime Minister, he embarked upon a vast programme to transform the country's economy from its being centrally controlled into a more free market economy. His government also introduced the Estonian currency, the Kroon
Estonian kroon
In 1992, coins were introduced in denominations of 5, 10, 20 & 50 senti, as well as 1 kroon. The 1 kroon was struck in cupronickel, the others in aluminum-bronze. However, in 1997, nickel-plated steel 20 senti were introduced, followed by aluminum-bronze 1 kroon in 1998. 5 senti coins were not...

, in June 1992. He also founded the Estonian Privatisation Agency, which embarked on the privatisation of government-owned assets to the private sector.

As agreed when he assumed the post Prime Minister in the transition government, Vähi did not participate in the parliamentary elections on 20 September 1992.

In 1993, he was elected Chairman of the Estonian Coalition Party
Estonian Coalition Party
Estonian Coalition Party was an Estonian centrist/centre-right liberal political party. Founded in 1991 by Tiit Vähi, it disbanded in 2001. The party was an observing member of Liberal International from 1998 on. It had a contacts with parties like Latvian Way and participated in the ruling...

. The parliamentary elections of March 1995 gave victory to the KMÜ coalition, comprising the Estonian Coalition Party
Estonian Coalition Party
Estonian Coalition Party was an Estonian centrist/centre-right liberal political party. Founded in 1991 by Tiit Vähi, it disbanded in 2001. The party was an observing member of Liberal International from 1998 on. It had a contacts with parties like Latvian Way and participated in the ruling...

 and the People's Union of Estonia
People's Union of Estonia
The People's Union of Estonia is a political party in Estonia, currently led by Margo Miljand.In the 2003 parliamentary election, the party collected 64,463 votes, which made 13.0% share of all votes and 13 mandates out of 101. In 2007's election, this dropped to 39,211 votes , and six seats in...

 Parties. As leader of the Estonian Coalition Party, Vähi was asked by President
President of Estonia
The President of the Republic is the head of state of the Republic of Estonia.Estonia is a parliamentary republic, therefore President is mainly a symbolic figure and holds no executive power. The President has to suspend his membership in any political party for his term in office...

 Lennart Meri
Lennart Meri
Lennart Georg Meri was a writer, film director and statesman who served as the second President of Estonia from 1992 to 2001. Meri was a leader of the Estonian independence movement.-Early life:...

 to form a government. Appointed Prime Minister for the second time in his career, he formed a coalition government of the KMÜ and the Estonian Centre Party, which was sworn in on 17 April 1995.

His second term as Prime Minister was quite rocky. On 11 October 1995 several ministers resigned from the cabinet, causing the Estonian Centre Party
Estonian Centre Party
The Estonian Centre Party is a centrist, social liberal party in Estonia. Keskerakond is a member of the European Liberal Democrat and Reform Party. It has the largest membership of an Estonian party, with over 12 000 members....

 to withdraw from the government coalition. On 7 November 1995, Vähi reformed the government, this time with the help of the Estonian Reform Party
Estonian Reform Party
The Estonian Reform Party is a centre-right, free market liberal party in Estonia. It is led by Estonian Prime Minister Andrus Ansip, and has 33 members in the 101-member Riigikogu, making it the largest party in the legislature...

. This collaboration lasted less than a year; on 20 November 1996, six ministers, including then-Foreign Minister Siim Kallas
Siim Kallas
Siim Kallas is an Estonian politician, currently serving as European Commissioner for Transport. He is also one of five vice-presidents of the 27-member Barroso Commission...

, resigned, causing a collapse of the collaboration between the Coalition Party and the Reform Party. On 1 December 1996, Vähi once again reformed the government; however, this time, he only used members of his own party, thus greatly reducing its ability to retain power. On 7 February 1995, Vähi survived a no-confidence vote, 46–45. Feeling pressure from within his own party, he resigned on 25 February 1997. Three days later, on 27 February, President Lennart Meri named Mart Siimann
Mart Siimann
Mart Siimann was the Prime Minister of Estonia from 1997 to 1999. Since 2001, he has been the president of the Estonian Olympic Committee....

as the new Prime Minister. By 2001, the Estonian Coalition Party, the party that Vähi had helped to form, and which presided over the Estonian government from 1995 to 1999, disbanded.
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