The party was founded on 12 October 1991, on the basis of the Popular Front of Estonia after several parties had split from it. The party's leader is Edgar Savisaar who is considered to be an authoritarian leader. Other leaders of the party include Peeter Kreitsberg, Siiri Oviir and Sven Mikser.
The party claims that its goal is the formation of a strong middle class in Estonia. It supports small enterprises. However, the support of the party is largely gained from pensioners believing in Savisaar's charismatic personality.
In general elections in March 1995 CPE gained 14.2% of votes and 16 seats (the third result). It entered the coalition, Savisaar taking the position of the Minister of Foreign Affairs, and Kreitsberg that of the Minister of Education. After the "tape scandal" (secret taping of talks with other politicians) where Savisaar was involved, the party was forced to go to opposition. A new party was formed by those who were disappointed by their leader's behaviour. The Centre Party was left in nearby political isolation until 2001.
In 1996, Oviir ran for the presidency of Estonia.
In the general elections in March 1999 CPE, whose main slogan was progressive income tax, gained 23.4% of votes (the first result) and 28 seats in the Riigikogu. CPE members are active in its 26 branches - 8 of them are promoting the centrist values in Tallinn, 18 in towns and counties.
In 2001, Kreitsberg ran for the presidency of Estonia.
In January 2002 the CPE and Reform Party formed a new governmental coalition where Mikser was the Minister of Defense. The coalition stayed until the new elections in 2003. Though the Centre Party won the greatest percent of votes, currently it is in opposition.
In 2003, the majority of the party's assembly did not support Estonia's joining the EU. Savisaar did not express clearly his position.
Savisaar is the mayor of Tallinn, the capital of Estonia, since 2001.