The elections proved disastrous for the ruling Estonian Coalition Party, which won only seven seats together with two of its smaller allies.

Following the elections, a coalition government was formed by Mart Laar of the Pro Patria Union, including the Reform Party and the Moderates.

The controversy arose when it was revealed that well-known figures, including Minister of Foreign Affairs Toomas Hendrik Ilves, as well as Vähi's own daughter, had acquired those living spaces for cheap prices.

Although Vähi narrowly survived a vote of no confidence in parliament, mounting pressure from the media prompted his resignation.

Criminal proceedings were started, as a result of which Siim Kallas was charged with both abuse of office and preparation for large-scale looting of state property.

KMÜ nominated Mart Siimann, the deputy chairman of the Coalition Party, as the new prime minister candidate.

[5] The 101 members of the Riigikogu (Parliament of Estonia) were elected using a form of proportional representation for a four-year term.

The Estonian National Electoral Committee announced that 12 political parties and 18 individual candidates registered to take part in the 1999 parliamentary election.