Estonia PM Ratas resigns over corruption scandal

Estonia's prime minister resigned on Wednesday over a corruption scandal involving a key official of his Center Party suspected of accepting a private donation for the party in exchange for a political favor on a real estate deal, prompting new talks on forming a new ruling coalition.

The resignation of Prime Minister and Center Party leader Juri Ratas automatically triggers the resignation of Estonia's three-party coalition government but does not automatically mean a new election.

Speaking to reporters shortly after resigning, he said with "the party under suspicion, the only right thing to do is take political responsibility."

Ratas said he personally has not done anything wrong.

After Ratas' announcement, parties immediately started talks on cobbling together a new government.

Estonia's President Kersti Kaljulaid said she would propose that Kaja Kallas, chairwoman of the main opposition Reform Party, form the new Cabinet.

On Tuesday, Estonia's security police said it was investigating the offices of state credit agency KredEx over suspicions of corruption regarding a 39 million-euro ($48 million) loan granted to the Porto Franco real estate complex in harbor district of the capital, Tallinn.