Tallinn  - The Baltic state of Estonia was facing an uncertain political future Tuesday after talks aimed at forming a new coalition government broke down without agreement Monday night.

Prime Minister Andrus Ansip's had attempted to woo an opposition party into government but failed.

Voters frustrated with weeks of political bickering are likely to show their anger at the polls during this week's European parliamentary elections.

Talks involving the two ruling parties - Ansip's Reform Party and the Pro Patria/Res Publica Union and the opposition People's Union party had been expected to form a new three-party coalition.

The addition of the People's Union's six members of parliament (MPs) would have restored Ansip's working majority in the Estonian parliament, or Riigikogu.

However, representatives of the People's Union issued a statement Monday night saying the talks would be ended after "unsurmountable differences" had been encountered on the issue of planned budget cuts; the same issue that broke the government in the first place.

Ansip may now turn to the Green Party, who also have six MPs.

On May 21, Ansip announced that he was ejecting the Social Democrat party from his three-party coalition, which has been in power since April 2007.

The Social Democrats disagreed with Ansip over the need for reforms to employment law as the government seeks to impose severe curbs on spending.

After a decade-long boom, the small Baltic state became the first country in the European Union to slip into recession in 2008.