His cabinet was formed with pragmatic calculations, as it consisted of ministers from free market liberal Reform Party of Estonia, populist and personalist Estonian Centre Party and agrarian People's Union of Estonia.
Reform Party and People's Union had participated in the previous government led by Juhan Parts (of conservative Res Publica).
Parts resigned on 24 March 2005 after his Minister of Justice Ken-Marti Vaher (also member of Res Publica Party) was sacked by Riigikogu.
As in the dire economic situation the government turned out incapable to solve the problem of required budget cuts the Social Democratic Party left from the coalition on 21 May 2009 and its three ministers were relieved from their posts.
The third cabinet of Andrus Ansip was approved by the Riigikogu on 6 April 2011, and it consisted of representatives of the Estonian Reform Party and Union of Pro Patria and Res Publica.