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Estonian Review 22 - 28 April 2009
30.04.2009
FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS
FOREIGN NEWS
EU Foreign Ministers Want Rapid Resolution of Croatia-Slovenia Border Dispute
27 April - Foreign Minister Urmas Paet participated in a session of the General Affairs and External Relations Council (GAERC) in Luxembourg. During the external relations session, the ministers discussed European Neighbourhood Policy and the situation in Moldova, as well as matters related to piracy in Somalia and immigration problems in the Mediterranean countries. In the general affairs session, the foreign ministers addressed the status of Croatia's accession negotiations with the European Union, and the Czech EU presidency gave an overview of preparations for the employment summit and Southern Corridor summit taking place in May.
Within the general affairs session, the foreign ministers discussed Croatia's accession negotiations with the European Union, which have nearly come to a standstill due to the unresolved border dispute between Croatia and Slovenia. Urmas Paet said that the foreign ministers expressed support for the European Commission's proposition to create a five-judge mediating tribunal that would determine the land and maritime borders and study the access situation in the open sea. The foreign ministers hope that the accession negotiations will resume very soon.
European Union Commissioner for Health Androulla Vassiliou gave the foreign policy leaders an overview of the situation regarding the rapidly spreading swine flu and called upon member states to share any and all information and follow developments, as well as avoid any unnecessary trips to regions that have experienced swine flu. Vassiliou stated that the European Union ministers of health have been called together for an extraordinary meeting this Thursday.
The foreign ministers' council discussed the post-parliamentary election situation in Moldova and agreed that it is regrettable that the post-election demonstrations in Moldova got out of hand and became violent. Foreign Minister Urmas Paet stated that at this moment, it is particularly important that all political powers in Moldova refrain from hostile rhetoric and using force and work together in the name of finding a solution to the current situation.
In talking about the Somalia piracy problem, the foreign ministers agreed that a harsher policy must be enforced in order to prevent pirate attacks. The UN, European Union and NATO must consider more forceful measures and work out legal bases that would allow them to capture ships involved in piracy, search them, and hand those individuals suspected of piracy over to a court, where they could be punished to the full extent of the law, said Foreign Minister Paet.
The foreign ministers also addressed illegal immigration problems in the Mediterranean countries. Foreign Minister Urmas Paet stated that the European Union needs to intensify its co-operation with North African countries in order to battle the primary causes for illegal immigration in those countries.
The European Union foreign ministers exchanged thoughts on the informal European Union-USA summit that took place on 5 April, also addressing future co-operation possibilities. Foreign Minister Paet asserted that the summit was a success.
The Council also discussed the situation in Burma/Myanmar and accepted the conclusion that declares the human rights situation in the country to be alarming and calls for greater co-operation from the international community. Since the political situation has not changed, the European Union decided to extend sanctions until 30 April 2010.
Estonian President Unveils Plaque Commemorating Finnish Fallen in Estonian War of Independence
23 April (BNS) - President Toomas Hendrik Ilves today unveiled a plaque commemorating Finnish volunteers killed in Estonia's War of Independence from 1918-1920.
The plaque is situated in St. George's Church of Tori in the south-western Pärnumaa region, which is dedicated to Estonian soldiers.
The commemorative plaque to Finnish volunteers pays a debt of gratitude, as they too fought for Estonia's independent statehood, the president said.
The arrival of the Finnish volunteers marked not only a military contribution to the Estonian troops but was of even greater significance to morale, he said.
"Our common fight in the War of Independence was certainly one of the noblest and greatest landmarks in the history of Estonian and Finnish brotherhood in arms. Although our nations were still young, very young, we could count on each other's existence and support," Ilves said.
This standing shoulder to shoulder in Estonian-Finnish relations must always be cherished, the president added.
Paet: EU Eastern Partnership Must Have Quick Start
27 April - At a meeting in Luxembourg with his colleagues from the Netherlands, Belgium, Luxembourg, Latvia and Lithuania, Foreign Minister Urmas Paet emphasised that the European Union must take the commencement of Eastern Partnership very seriously.
Ukraine, Georgia, Moldova, Azerbaijan, Armenia and Belarus belong to the EU Eastern Partnership. Paet stated that through the EU Eastern Partnership, an effective framework must be created to help partner countries become closer to the EU. For this, we need concrete schedules and deadlines, so that it would be possible to begin practical work immediately after the Eastern Partnership summit on 7 May, he added.
At the meeting of the Benelux and Baltic foreign ministers in Luxembourg on the evening of Sunday, 26 April, another topic of discussion was the security situation in Europe. The ministers agreed that the Organisation for Security and Co-operation in Europe (OSCE) is the appropriate place for discussions about Europe's security structures. Paet stated that the security architecture of Europe should be based on common values and mutual agreements that are always followed.
Today's security architecture works when all parties adhere to principles that were previously decided, he added. Close co-operation between the EU and USA and the EU and NATO are essential to European security, Paet stated.
A meeting of the Baltic and Benelux foreign ministers occurs regularly once a year. The last meeting of the foreign ministers of the Netherlands, Belgium, Luxembourg, Latvia, Lithuania and Estonia took place in the fall of 2008 in Estonia.
DOMESTIC NEWS
Prime Minister Ansip Speaks on 90th Anniversary of Riigikogu
23 April - In his greeting on the 90th anniversary of the Riigikogu, Prime Minister Andrus Ansip said that there can be no alternative for democratic order and underlying democratic values.
We cannot play with our democracy. We may count votes into coalitions and oppositions, one way or the other, but we cannot play with the reliability of the Parliament, with democracy, said the head of government on the festal day of Estonian democracy.
According to the prime minister, in a democratic system, the Parliament reflects the society in all its diversity. By definition, honourable Riigikogu, it is you who are the most dignified body of our people, whom the people themselves as voters have authorised to make decisions for the people, said Ansip.
Prime Minister Ansip wished the Riigikogu good decisions and serving of Estonia with pride, but also strength and willpower.
DEFENCE NEWS
Prime Minister of United Kingdom Recognises Estonian Soldiers in Afghanistan
27 April - Today Prime Minister of the United Kingdom Gordon Brown met with many soldiers, including Estonian Defence Forces members, when he visited the largest allied military base Camp Bastion, which is located in Helmand Province.
The British prime minister thanked the soldiers of the special coalition forces for their service during a short meeting at the Camp Bastion airport.
We are all in awe of you for the extremely important and dangerous mission that you carry out here, said Gordon Brown. I especially want to thank our partners here in Helmand: the Estonians, Americans, and soldiers representing other nations, emphasised the prime minister.
The prime minister of Great Britain shook hands with everyone present, including Estonian National Support Element (NSE) logistics workers Senior Sergeant Major Janek Loorits and Sergeant Major Anne Rosenberg, who participated in the line-up.
Gordon Brown also visited Camp Bastion's field hospital and the headquarters of Task Force Helmand (TFH) in Lashkar Gah.
The Estonian unit ESTCON-6 began serving in Helmand Province in southern Afghanistan within the ranks of the United Kingdom-led Task Force Helmand at the beginning of November.
The Estonian Defence Forces have participated in military operations in the Islamic Republic of Afghanistan since 2003. The Estonian motorised infantry company (ESTCOY-7) is led by Major Raigo Paimla, and the leader of the logistical National Support Element (NSE-6) is Lieutenant Andres Ojalt.
Currently about 150 Estonian defence Forces members are serving in Afghanistan. There are 42 nations represented among the international security forces stationed in Afghanistan.
Ilves: We Require Patience and Dedication in Afghanistan
24 April - "Success is possible in Afghanistan. But achieving it will be difficult," said President Toomas Hendrik Ilves in Paldiski, where he met with members of the Estonian Defence Forces that are soon leaving on a mission to Afghanistan.
Afghanistan's statehood has almost been destroyed by more than three decades of war, said the head of state. He added, "Therefore, we require patience and dedication. We must also understand that in addition to the military element, a very strong civilian element is needed for achieving success in Afghanistan. Without it, a genuine civil society cannot develop, and stability cannot develop without it. Estonia too must think more about increasing its civil contribution."
According to President Ilves, Afghanistan is the most important foreign mission for our Defence Forces and for us as a country and us as a NATO member state.
"After the war between Russia and Georgia, NATO is again paying more attention to the most important topic for all of us - the defence of our territory. We can see how more attention is being paid to the defence plans for NATO countries and how the demonstration of the alliance's military presence has also increased," said the head of state. "However, we also have responsibilities to NATO as an organisation. The countries that understand their responsibilities to their allies and are considerate in their foreign policy can feel secure. This also means helping the countries that require our help and which we can help."
The President of the Republic stressed that members of the Estonian Defence Forces on the NATO-led operation in Afghanistan help to make the country more stable, and thereby reduce the threat from terrorists and narcotics shipments.
At the same time, our Defence Forces also acquire indispensable experience in Afghanistan. "No matter how good the work during our exercises and in our classrooms, each soldier's can only acquire actual combat experience in a real theatre of war, in actual battle situations," said the head of state.
President Ilves affirmed that Estonian soldiers are well regarded by our allies, because they are brave and good professionals.
The head of state wished all the members of the Defence Forces soldiers' luck and asked their families to be patient while they wait.
Baltic Defence Ministers: Economic Crisis Increases Importance of Security
24 April - At their meeting in Tallinn, the ministers of defence of the Baltic states confirmed their mutual aim of increasing their countries' defence expenditures to 2% of GDP and agreed upon the continuation of co-operation between ground forces.
Estonian Minister of Defence Jaak Aaviksoo, his Latvian colleague Imants Lieģis and Lithuanian Minister of National Defence Rasa Juknevičienė all stressed that financial, economic and at times accompanying social crises have raised the importance of security in all of the states. To provide for security during difficult economic times, the ministers deemed it necessary to maintain defence expenditures at the permissible level relative to the general prosperity of the country also in the case of decreasing economic conditions. According to Aaviksoo, our ability to achieve this will be a measure of our reliability.
In addition, the ministers agreed that the co-operation of the ground forces of the Baltic States would definitely continue after the standby period of the Baltic Battalion in the NATO Response Forces ends. The co-operation of the ground forces of the three countries has been given a strong foundation thanks to the participation in the NRF, stated Minister of Defence Jaak Aaviksoo.
The ministers of defence also discussed in detail the co-operation of the three countries in the area of defence-related procurements. The ministers agreed that it is important to analyse in detail the legal and procedural differences between the three countries, the bypassing of which would make it easier to prepare future strategic defence-related procurements.
The experiences of the three countries show that mutual defence-related procurements could, in the future, save much of our tax-payer's money - and we are talking of sums that reach up to billions of kroons, said Aaviksoo.
On Friday, the Estonian and Lithuanian ministers of defence will visit the F-15C tactical fighter aircraft of the United States that are currently stopping at the Tallinn airport.
The meeting of the ministers of defence of the Baltic States takes place regularly twice a year. The last meeting of the ministers took place in December of last year in Lithuania, the next meeting of the ministers of defence will be held in the second half of the year in Latvia.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
Moody's Leaves Rating for Estonia Unchanged
23 April (BNS) - The international rating agency Moody's Investors Service today lowered the credit ratings of Latvia and Lithuania but left the Estonian rating unchanged.
Moody's confirmed the foreign and local currency ratings of the government of Estonia at A1. The long-term foreign currency bank deposit ceiling was also confirmed at A1. The outlook for these ratings was changed to negative.
The upper limit of foreign currency obligations rating for companies operating in Estonia is Aa1 with a stable outlook.
Moody's has concluded that the Estonian government's creditworthiness is likely to remain resilient in the face of a deep and potentially prolonged recession.
The government is working to keep the budget deficit under control, liquidity is secure, and the government is relatively well isolated from problems in the banking sector, the agency said in its information.
Disciplined fiscal policy during the boom years, plus an impressive fiscal adjustment in reaction to the current circumstances, means that the budget deficit is likely to remain within the 3% of GDP Maastricht threshold in 2009.
This performance -- one of the best in the EU -- should permit Estonia to exercise its "exit strategy" and officially adopt the euro in January 2011, Moody's said. Moody's views entry into the Euro-zone as positive for Estonia's creditworthiness.
The negative outlook for the Estonian government's ratings reflects the high degree of uncertainty for the Estonian and regional economic outlook.
Moody's believes that the Estonian economy is unlikely to stabilise without some support from external demand.
Estonian Interior Products Traders to Establish Nordic Export Group
22 April (BNS) - The Estonian curtain maker Sunorek and sofa maker Borg are going to bring together a group of several companies by this fall in order to establish an interior design store with a common sales concept in Finland and Sweden, Ärileht reported.
Aet Peil's interior design company, Tõnis Vellamaa's light fittings, and Tank Indoor Systems, a Finnish furniture modules maker, will also join the group.
"We are considering whether to launch common sales on the internet in the Nordic countries and to open an office in Helsinki, because there is reason to enter a market cautiously," said Indrek Pals, CEO of Sunorek, who has long-time experience of operations on the Finnish market. He said that in case of success, opening of a salon of a couple of hundred square meters could be considered.
Estonians want to offer a new choice for customers in addition to the Nordic countries' large interior design stores. The companies are planning to come out with a common plan of action and a common name at the Habitare interior decoration and design fair to take place this fall in Helsinki.
Mart Jõhvikas, CEO of Borg, told the paper that the companies were now busy organising co-operation and therefore it was still early to speak about a new business name.
Creators of the export group are not considering the companies' merger: the annual turnover of the group could amount to a quarter of a billion kroons (EUR 16 mln).
Belgian Foam Rubber Maker Continues Expanding in Estonia
28 April (BNS) - The Estonian competition watchdog has given the Belgian company Recticel permission to acquire dominant influence in AS Wenfom, a foam rubber processing company based in the south-western Pärnumaa region.
Recticel had a holding in Wenfom before, as it owns 50% of Eurofoam GmbH which has a 51% stake in the Estonian company.
Recticel, the largest foam rubber maker in northern Europe, completed another takeover in this country recently through international transactions, acquiring the assets of AS Univa.
According to the 2007 financial statement, the sales revenues of Wenfom totaled 66.6 million kroons (EUR 4.3 mln) and the profit, 2.3 million kroons. The company employed 20 people. It sold its output mainly on the domestic market.
Saku to Invest 4.5 Million EUR in Brewing Equipment
27 April (BNS) - The listed Estonian beverages maker Saku Õlletehas plans to invest 70 million kroons (EUR 4.5 mln) in brewing equipment and technologies this year.
The company believes the investment to be the biggest placement of funds in the domestic food industry in 2009.
Saku Olletehas said at a news conference today that the 70 million kroons covers investments to be made during the summer in technology, products and packaging.
The brewer launched today the production of high-quality crystal-filtered beer in a new type of bottle.
Head brewer Enn Karblane said the company is reducing the impact of thermal processing and the filtered beer produced under the new technology has a longer life and tastes like fresh draught beer. The recipes of Saku beers will not change, he added.
Saku believes the new filter to be the first of this type in Estonia. The same technology is already used for draught beers.
Saku hopes the new technology will bolster its position on the beer market and halt the general contraction of the market. The company expects to sell more than four million liters of filtered beer in new type of bottle this year.
Saku Õlletehas estimates its share of the domestic beer market at 44.5% in terms of sales turnover and 42.1% of market volume.
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