Estonian Prime Minister, Juri Ratas, said he was stepping down on Wednesday after his Centre Party came under investigation for corruption linked to a property development company.
His resignation brings down the country’s centre-right coalition government that also includes a far-right party, but new elections are unlikely.
Estonian President, Kersti Kaljulaid, now has 14 days to name a new prime minister who would then have to be approved by the parliament.
Ratas said he hoped his resignation would help shed light on all the circumstances and reach clarity but insisted that he had not made any malicious or knowingly wrong decisions.
The investigation centres on a property company, Porto Franco, which received a large state loan and struck a lucrative deal with city authorities in the capital Tallinn whose mayor is also from the party.