In barely two years, from 1992 to 1994, the radical reforming Estonian government of Mart Laar was the first in Europe to introduce the flat tax, privatized most national industry in transparent public tenders, abolished tariffs and subsidies, stabilized the economy and balanced the budget.

[7] Reasons for the vote were publicized details of arms deal with Israel and so called "rouble scandal" - the sale of 2.3 billion Rbls,[8] withdrawn from circulation during the Estonian monetary reform of 1992, to breakaway Chechen Republic of Ichkeria, carried out by Laar's associates at an Estonian private company, Maag, without consulting Parliament.

[9][10][11][12] Five years later, in 1999, Laar returned to the post, with his main policy goals being to pull the economy out of a slump and lead the country toward the European Union.

On 18 May 1999 while prime minister, Mart Laar with security advisor Jaan Tross, Võru County head Robert Lepikson and Government Office coordination director Eerik-Niiles Kross used a shotgun to shoot at a photo of Edgar Savisaar, leader of opposition party Keskerakond.

[26] The House of Terror Museum in Hungary awarded Mart Laar the Petőfi Prize in 2011 for his contributions to investigating the crimes of communism.

[27] Together with Václav Havel, Filip Dimitrov, Árpád Göncz, Petr Pithart, Vytautas Landsbergis, Patricio Aylwin and other transition leaders, he participates in the International Committee for Democracy in Cuba.

[30] In 2003, Laar received the Wharton Infosys Business Transformation Award brought about the development of electronic systems in Estonia to upgrade the country's infrastructure.

[32] In September 2006, Laar announced that he would come out of political retirement to run for the candidacy for prime minister of the new Union of Pro Patria and Res Publica party.

[37] On 15 May 2023 a public letter was published in the leading Estonian newspaper Postimees, voicing disapprovement of a recent Government policy decision to extend marriage rights to couples of the same gender.