ESTONIA

MARCH 4 2007 14:10h

Estonians Vote For Parliament

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Estonians began voting in elections that are expected to return a right-left coalition to power.

Parties have showered voters with pledges to cut taxes or boost wages and pensions. Estonia, technologically advanced enough to run the world's first Internet election, is one of the poorest EU nations.

Opinion polls show the left-leaning Centre Party and centre-right Reform Party, the core of the current coalition, will take most seats in an election overshadowed by increased tensions with large neighbour Russia.

"The most important things in this election are pensions, the tax system and financial support for children," said Alexander Drobnits, a pensioner, who voted for the Centre Party in the town of Turi, 100 km (62 miles) from the capital Tallinn.

A poll in the Postimees daily on Saturday predicted the two parties will win 29 to 32 seats each in the 101-seat parliament.

Earlier polls have shown a new Reform-Centre coalition will likely need a third party for a majority. Their current partner is the People's Union, the former farmers' party.

Polling stations opened at 9 a.m. (0700 GMT) and close at 8 p.m. (1800 GMT). A result is expected near midnight (2200 GMT).

Either Centre Party head Edgar Savisaar or Reform Party chief and Prime Minister Andrus Ansip could lead the new government after the first election since Estonia joined the EU and NATO in 2004.

Savisaar was prime minister after Estonia split from the former Soviet Union in 1991 but lost the post in 1992.

He later became interior minister before quitting in disgrace in 1995 after allegations he had secretly taped political rivals.

EURO DELAY

Pledges from both Centre and Reform show little hint of slowing consumption-led growth to brake inflation which forced Estonia to delay euro entry from 2007 to 2010 at the earliest.

Ansip, vowing to make Estonia one of the five richest EU nations in 15 years, aims to cut taxes to 18 percent from 22.

Savisaar has campaigned on pledges to raise public sector wages under the slogan "A rich state, a better salary".

One key change he backs is a progressive tax to replace the current flat tax, which is regarded as one of the foundations of Estonia's economic success.

One sign of this success has been Estonia's embrace of technology. More than 30,000 people last week voted via the Internet, a world first for a parliamentary election.

Tensions with Russia were sparked when parliament voted to remove a bronze statue of a Red Army soldier from the centre of Tallinn as a reminder of 50 years of Soviet rule.

Russia called the plan blasphemous to the memories of the fighters of fascism. Another source of tension has long been the status of Estonia's 300,000 Russian-speakers. Moscow says the Baltic state has discriminated against this group since the collapse of the Soviet Union in 1991.

About 100,000 of them can vote in the election. The rest are either citizens of Russia or so-called non-citizens, without the right to vote in national parliamentary elections.