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Estonian Review 4 - 10 March 2009
13.03.2009
FOREIGN NEWS
DEFENCE NEWS
ECONOMIC NEWS
FOREIGN NEWS
Afghanistan, Relations with Russia Main Topics for NATO Foreign Ministers
5 March - Foreign Minister Urmas Paet took part in a meeting of NATO foreign ministers in Brussels. The foreign ministers discussed matters related to the operations of the alliance, focusing on Afghanistan and Kosovo, and also addressed relations with Russia.
The NATO foreign ministers emphasised that in addition to military matters, attention must also be paid to civil matters and issues related to the development of Afghanistan and Pakistan. Increasing the accountability of the Afghan people is also essential.
Foreign Minister Paet stated that NATO must more actively involve Afghan state authorities as well as tribal and religious leaders in the decision-making process.
One significant development is the occurrence of presidential elections this year in Afghanistan. The NATO foreign ministers discussed the pre-election situation and confirmed that the ISAF and the international community continue to support the planning and realisation of the elections. Foreign Minister Paet stated that NATO must find the necessary military units and measures to ensure the safety of the elections. At the same time, the Afghans must accept political responsibility for the organisation of the elections, Paet added.
The NATO foreign ministers decided to revive the activities of the NATO-Russia Council. Foreign Minister Paet stated that Russia should be given the chance to show a constructive attitude, interest towards developing relations between NATO and Russia, and the desire to move forward on subjects that are of interest to both parties.
NATO will use the NATO-Russia Council for dialogue with Russia on all issues. This includes those on which we have similar views and those on which we have divergent views, Paet added.
Foreign Minister Paet stated that NATO-Russia co-operation is essential for, among other thing, finding solutions for the problems in Afghanistan, Iran and the Middle East and limiting the spread of weapons of mass destruction.
The foreign ministers also emphasised that one cannot ignore the real reason for the deterioration of NATO-Russia relations-Russia's invasion of Georgia, its recognition of Abkhazia and South Ossetia, and its ongoing military presence in the region, which violates many international agreements. Until Russia fulfils the agreements it has signed, we cannot talk seriously about a true NATO-Russia partnership, said Paet.
The NATO foreign ministers exchanged ideas on the Declaration on Alliance Security being prepared for the Strasbourg/Kehl summit. Foreign Minister Paet stated that NATO needs a political declaration about the future of the alliance that takes into account the solidarity of allies, shared values and the indivisibility of security, while also emphasising the importance of transatlantic relations. It is essential to find a balance between our responsibilities, which on one side are tied to NATO's general principle-collective security-and on the other to our current and potential future operations, Paet emphasised.
NATO Foreign Ministers Confirm Support for Ukraine and Georgia
5 March - At today's sessions of the NATO-Ukraine and NATO-Georgia Commission, the NATO foreign ministers exchanged ideas on NATO's relations with Georgia and Ukraine.
Foreign Minister Urmas Paet stated that the Annual National Plan (ANP) is an effective method for preparing a nation to join the alliance, as it creates a strong basis for integration with Euro-Atlantic structures. Estonia is prepared to give advice to Georgia and Ukraine and to share its experiences in the ANP process, Paet added.
The foreign ministers of the alliance expressed their support for the territorial integrity of Georgia and emphasised the importance of an international presence in the Caucasus. The extension of international monitoring missions and the access of international monitors and humanitarian aid to occupied territories is extremely important-we must continue our efforts in this area, emphasised Paet.
The NATO foreign ministers called upon Russia to fulfil the promises it made for resolving the Georgia conflict. Paet said that the NATO foreign ministers expressed concern over Russia's decision to recognise Abkhazia and South Ossetia as independent and its decision to establish a military base in Abkhazia.
European Nordic-Baltic Ministers: EU Needs Internal Energy Market
4 March - The third meeting of the European ministers of the Nordic and Baltic countries (NB6 - Nordic-Baltic 6) took place in Copenhagen. The Estonian delegation was led by Foreign Ministry Secretary General Marten Kokk.
Topics of discussion were the Economic Recovery Plan for the European Union, financial crisis issues, the Treaty of Lisbon, developments in the Eastern Partnership of the European Neighbourhood Policy, energy and climate change, and opportunities for co-operation in the Baltic Sea region.
While talking about developments in the financial crisis, Secretary General Marten Kokk emphasised that it is important to prevent the spread of protectionist economic policies. The restriction of the world economy, particularly free trade, will make emerging from this economic crisis very difficult in the long run, said the secretary general. He added that the measures being taken to get out of the economic crisis in the European Union and on the level of individual member states must be in harmony with the principles of a functioning internal market and also take into consideration their effects across borders. Kokk also stated that the implementation of the Economic Recovery Plan is essential.
Other topics discussed at the meeting were the content and sticking points of the European Neighbourhood Policy Eastern Dimension. Secretary General Marten Kokk stated that the communication on strengthening Eastern Partnership given last December is a good basis for developing concrete and long-term policies for drawing target countries closer to the European Union.
On the topic of energy security, it was noted that in order to strengthen the European Union's energy security and have a unified energy policy towards third countries, there must be a well-functioning internal energy market with sufficient connections. One good example of a well-functioning internal energy market is the electricity market in the Nordic countries, which the Baltic nations should also be connected to soon, said Secretary General Kokk. It was also agreed that it is important to work together to diversify suppliers, supply channels, and energy sources.
Climate change was another topic addressed at the meeting. Secretary General Marten Kokk stated that it is a positive development that the European Union has taken on a leading role in dealing with climate change and feels that the creation of a Post-Kyoto Global Climate Agreement is crucial. However, it will be possible to achieve a functioning agreement only if all the great developed nations are included, so that their interest and good example would ensure the solid participation of developing nations in a Post-Kyoto Climate Agreement, Kokk noted.
While talking about co-operation among the Baltic Sea states, Secretary General Kokk expressed hope that the Baltic Sea Region Strategy would be accepted by the second half of 2009, when Sweden will be the EU presidency. It's essential that the Baltic Sea Region Strategy will be as focused, realistic and feasible as possible, Kokk emphasised. Estonia's priorities for the Strategy for the Baltic Sea Region are spatial integration and competitiveness, as well as the effective and free movement of the five basic freedoms-trade, services, capital, people, and knowledge.
Paet: Pakistan Has Key Role in Improving Situation in Afghanistan
9 March - While meeting with NATO Senior Civilian Representative to Afghanistan Ambassador Fernando Gentilini in Kabul, Foreign Minister Urmas Paet discussed the security situation in Afghanistan and NATO's co-operation with the European Union and UN missions in Afghanistan.
Foreign Minister Urmas Paet stated that the security situation in Afghanistan is still complicated and in order to improve the situation it is necessary to involve Afghanistan's neighbours, first and foremost Pakistan. Without Pakistan's participation it will not be possible to stabilise the situation in Afghanistan, because the development of the two nations is closely tied and the future of Afghanistan depends greatly on developments in Pakistan, emphasised Foreign Minister Paet.
Foreign Minister Urmas Paet said that the complete co-operation of NATO, the European Union and the UN is extremely important for Afghanistan's development into a politically and economically stable nation. We must continue to find opportunities for international organisations to complement each other's activities in Afghanistan. It is clear that we cannot achieve success in Afghanistan with military means alone. The most important issues are the reconciliation of the Afghan people and decreasing poverty, said Paet. Paet added that Afghanistan is among the five poorest countries on earth, which directly affects the country's domestic developments.
According to Gentilini, the primary emphasis should be placed on developing the army, police force, and good administrative practices so that the central Afghan authorities will be increasingly able to keep the situation in the country under control. Paet and Gentilini also discussed the upcoming Afghan presidential elections, which will to a great extent determine the country's domestic political situation.
The responsibilities of the NATO Senior Civilian Representative include co-ordinating the civilian activities of the international Provincial Reconstruction Team (PRT). Gentilini gave an overview of the co-operation between the NATO International Security Assistance Force (ISAF) and the UN mission in Afghanistan (UNAMA).
Paet and Messenger: Estonian Defence Forces Members in Afghanistan are Highly Valued
10 March - Foreign Minister Urmas Paet's visit to Afghanistan continued on Tuesday, 10 March. Paet visited the Provincial Reconstruction Team (PRT) in Lashkar Gah´, the capital of Helmand Province in southern Afghanistan, where he met with Commander of the International Security Assistance Force (ISAF) General Gordon Messenger as well as Estonian soldiers serving in Afghanistan.
At the meeting with General Gordon Messenger, Foreign Minister Urmas Paet confirmed that Estonia will continue to support the government of Afghanistan through the ISAF. We have increased our mandate to 170 Defence Forces members, and we have a plan to add new capabilities this year, stated Paet.
General Messenger expressed high praise for the work of the Estonian Defence Forces members in Helmand Province. The Estonian soldiers do very good work on a highly professional level and fulfil the most complicated tasks, he said. Foreign Minister Paet stated that military co-operation with the United Kingdom has been very good.
The foreign minister met with Estonia's infantry unit Estcoy-7 in Lashkar Gah´ and thanked the soldiers for their contribution to improving the security situation in Afghanistan's Helmand Province. The Estonian soldiers serving in Afghanistan are not only fighting to ensure stability and security in Afghanistan, but also for our own nation's security. Estonia participates in the stabilisation and reconstruction of Afghanistan and in other foreign missions based on its own security concerns, he added. The fight against the spread of narcotics is also very important. I highly value the strong group spirit and excellent work of the soldiers serving in the Afghanistan mission, said Paet.
In co-operation with Estonian Public Broadcasting (ERR), Paet presented the soldiers with the TV miniseries Tuulepealne maa, as well as books and other Estonian films. Most of the Estonian soldiers serving in the Afghanistan ISAF mission are stationed in Helmand Province in southern Afghanistan.
DEFENCE NEWS
Minister of Defence Met with Defence Committee of UK Parliament
4 March - Minister of Defence Jaak Aaviksoo met with the delegation from the Defence Committee of the UK Parliament visiting Estonia. The main topics discussed at the meeting were the results of the Georgia conflict and the relations between Russia and the European Union and NATO.
The security environment after the Georgia conflict and the relations between Russia and the European Union and NATO were discussed in more detail. Following the Russia-Georgia conflict, it is difficult to talk about a partnership that is based on mutual values, since Russia's actions in Georgia contradicted NATO's base values, international rights and rules of conduct, said Minister of Defence Aaviksoo. Aaviksoo noted that Estonia deems it necessary to strengthen and to extend the mandate for the EU monitoring mission EUMM Georgia.
Both sides believed it is important to maintain stable and constructive relations with Russia. We believe that it is important that NATO continues a dialogue with Russia. It is not in our interests to isolate Russia, Aaviksoo assured, adding that reviving relations is a two-sided process.
When talking about international operations, Minister of Defence Jaak Aaviksoo noted the successful co-operation in Afghanistan, where members of the Estonian Defence Forces serve in the international security forces as part of a British unit and confirmed that co-operation will continue to the same extent. The British acknowledged the professionalism and devotion of the members of the EDF who served in Afghanistan, noting that often even greater nations do not have soldiers who are so well trained and who possess such high skills as the Estonian soldiers who served in Afghanistan.
The aim of the visit of the Defence Committee of the UK Parliament, lasting from 4-6 March, is to make preparations for compiling a defence policy report. The members of the Defence Committee will also meet with members of the Defence Committee and Foreign Affairs Committee of the Riigikogu and with representatives of the Defence Forces, and will visit the Cyber Defence Centre.
Estonian Soldier Wounded in Afghanistan
7 March (BNS) - An Estonian soldier was lightly wounded in a skirmish in Afghanistan today but returned to his unit after receiving medical aid.
The Estonian infantry company ESTCOY-7 stationed in Afghanistan's southern Helmand province was attacked by anti-government rebels. One soldier was lightly wounded but his injuries were not life-threatening, military spokespeople in Tallinn said.
The wounded soldier was given first aid and taken to Camp Bastion, where he was put in the care of medics. The soldier himself phoned his family and by now he is back with his unit.
The Defence Forces will not release the name of the soldier or the nature of his injuries.
ESTCOY-7 continued the anti-Taliban operation.
The company, led by Maj. Raigo Paimla, began serving in Helmand in November.
Estonian troops have been participating in the Afghanistan mission since 2003. Before today's incident some 30 soldiers have been injured and three killed.
Tartu Practiced Hosting of Allied Forces
5 March - Today the four-day training for Estonia, Latvia and Lithuania called Baltic Host 2009, which involved practising the hosting of allied forces in the Baltic states, ended in Tartu.
During the in-house exercise, organised at the Simulation Centre of the Estonian National Defence College, co-operation between and in the Baltic states involving the hosting of allied units was practised. The training Baltic Host 2009 was attended by the Ministries of Defence and the Defence Forces of Estonia, Latvia and Lithuania, as well as specialists from the Ministry of the Interior, the Ministry of Economic Affairs and Communications, the Ministry of Social Affairs, the police, the border guard and Rescue Board, Muuga Port and Tallinn Airport. According to the training scenario, the hosting of allied forces during peace time is organised according to the legislation valid during peace time. As appropriate for NATO trainings, the scenario of Baltic Host 2009 is based on fabricated situations and countries.
According to Riho Terras, the Permanent Undersecretary of the Ministry of Defence, who visited the training today, the training was a success in every way. It was also the first time we practiced Host Nation Support operations with the heads of the ministries of the interior, economic affairs and communications, social affairs and finance. Civil ministries will now also have a better overview of their role in HNS operations, Terras said.
Colonel Neeme Väli, Chief of General Staff of the Estonian Defence Forces, said that the co-operation between the Baltic states as well as with civil boards was excellent on both the operative and strategic levels. The contribution of civil specialists was very efficient, situations were played through just as if they were real life," said Colonel Väli, who participated in the training as a member of the Estonian Joint Host Nation Support Steering Committee.
Today the training was also visited by the Chiefs of Defence of Estonia, Latvia and Lithuania and higher officials of the United States European Command (EUCOM).
Brigadier General Joe E. Ramirez, Deputy Head of the Planning Department of EUCOM, was pleased with what he saw at the training. The training between NATO member states was a great success and in the future we hope to co-operate with Estonia, Latvia and Lithuania regularly to establish a stronger partnership for keeping Europe safe, said Brigadier General Ramirez.
This was the largest training of its kind held in the Baltic states so far, with preparations beginning in autumn 2007.
During the training, the role of the allied forces was played by the US, Polish and British officers of the Strike Force NATO located in Naples, but also by officers of the United States European Command (EUCOM). This was the first HNS training between the Baltic states, Strike Force NATO and EUCOM. In the future, such trainings will be organised on a regular basis.
Minister Presents Awards to Defence Forces Members for Serving in Iraq and Kosovo
4 March - Today at the Kalevi Infantry Battalion, Minister of Defence Jaak Aaviksoo presented commemorative peacekeeping operation medals to members of the Defence Forces who served in Iraq and Kosovo and on other single missions.
The commemorative peacekeeping operations medals were presented to members of the infantry platoon Estpla-16 of the Defence Forces, who served in Iraq in 2008, and to members of the reconnaissance squads ESTRIF-3 and ESTRIF-4 that were created on the basis of the National Defence League. Additionally, medals were presented to members of the Defence Forces who served on other single missions at different headquarters.
In his speech, Minister of Defence Aaviksoo said that members of the Estonian Defence Forces who served abroad represent us standing for our own safety and for that of our allies and our friends.
As early as the War of Independence we were joined in the fighting or supported with equipment by the English, by the Russian White Guard, by Finnish, Swedish and Danish volunteers, and by Baltic Germans and members of other nationalities who lived in Estonia. Therefore, international solidarity is no stranger to us, Aaviksoo said.
According to Aaviksoo, the members of the Estonian Defence Forces have brought esteem, glory and honour to Estonia. I have often heard those words from my colleagues at international meetings, and the members of the militaries of other countries have said the same to the leaders of our Defence Forces. The greatest reward, though, is to hear words of gratitude addressed to our peacekeepers from the people in Iraq, Afghanistan and Kosovo, whose lives they have made more peaceful and secure.
In January, the Government of the Republic decided to end the participation of Estonian units in Iraq. Estonia continues to contribute to Iraq with three HQ officers in NATO Training Mission - Iraq - NTM-I. Additionally, the defence-related co-operation between Estonia and Iraq continues in other forms, in accordance with a bilateral agreement that is being currently drafted.
The EDF mission in Iraq was officially and festively ended at the beginning of February of this year and was attended by Minister of Defence Jaak Aaviksoo. The EDF had participated in the mission in Iraq since June 2003.
The mission of the Danish battalion stationed in North Kosovo near Mitrovica, to which ESTRIF belongs, is reconnaissance patrols, the performing of searches, and providing security for different installations. The EDF has participated in the NATO-led peacekeeping operation KFOR in Kosovo since November 1999.
The commemorative peacekeeping operations medal is presented to all members of the Estonian Defence Forces who participated in international military operations, and to citizens of foreign states who have supported the foreign operations of the EDF.
The medal consists of a silver coloured metal medal with a diameter of 31 mm. The front face of the medal shows the Estonian map with the globe as the background surrounded by olive branches and crowned with a wind rose. The back of the medal shows the text RAHU TEENISTUSES (IN THE SERVICE OF PEACE).
Estonian Officer Awarded US Medal
9 March (BNS) - Col. German Kesa of the Estonian Defence Forces, who served for seven months as deputy chief of staff of the NATO Training Mission in Iraq, has been awarded a U.S. army decoration for special merit.
Col. Kesa's contribution helped maintain and strengthen the allied nations' support for the NATO training mission in Iraq, Lt. Gen. Frank Helmick, commander of the Multinational Security Transition Command and the NATO Training Mission in Iraq, said when presenting the medal.
Kesa observed that the situation in Iraq has become more stable and the national security forces considerably more professional. But it remains essential to continue building up Iraq and its security sector in particular. The importance of the NATO Training Mission grows with each passing day, the colonel emphasised.
Kesa served as deputy chief of staff of the NATO Training Mission with logistics, communications, personnel and financial operations under his supervision. He also was in charge of projects related to the reorganisation of the mission.
The training mission is the only NATO operation in Iraq. The aim of the 200-strong mission is to develop and support an independent and sustainable Iraqi army, above all military educational institutions and command centres as well as those subordinated to the Interior Ministry.
Estonian Ground Intercept Controllers to Take Part in Iceland Air Patrolling Mission
9 March (BNS) - Two ground intercept controllers of the Estonian Air Force will participate in the Iceland airspace surveillance mission in the composition of the Danish Air Force.
The Estonian officers start Monday directing Danish F-16 fighters that are policing the skies over Iceland, with the mission lasting until the end of this month, military spokespeople said.
Denmark is currently using F-16 aircraft to also guard the Baltic airspace.
This is Estonian controllers' first mission outside the Baltic states.
Iceland is one of the six NATO countries that lack airspace patrolling capacity of their own.
A unit of the U.S. Air Force was stationed at the Keflavik base southwest of the capital Reykjavik until 2006. At present the island nation itself maintains the radars installed there and monitors the airspace, but it lacks ground intercept controllers and aircraft to patrol the airspace.
NATO member states have since 2007 taken turns guarding Iceland's airspace, contributing aircraft and specialists. The rotation system is used to police Baltic skies as well.
Denmark has supported the training of Estonian airspace monitors and ground intercept controllers in previous years. Before starting service in Iceland the two officers underwent refresher training with the Danish Air Force.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
IMF Recognises Fundamentals of Estonian Economic Policy
10 March (BNS) - At an annual discussion of Estonia's economic situation and outlooks the International Monetary Fund (IMF) recognised the fundamentals of Estonia's present economic policy and the steps taken for strengthening the framework for resolving the crisis.
The IMF noted that Estonia's fast progress in catching up with the average level of the European Union and its integration into the European common market deserved to be highlighted. Although Estonia will still be faced with several challenges in the global economic and financial crisis, the county's vulnerability has considerably declined.
The price hike has slowed down and the current account shortfall is also contracting, which means that Estonia depends less on foreign financing, the IMF said.
"Of particular importance in the report is yet another confirmation by the IMF that the Estonian currency board system and the fixed exchange rate of the Estonian kroon are the pillars of the Estonian fiscal policy and financial stability," Central Bank President Andres Lipstok said.
"That system will remain in effect until Estonia accedes to the euro zone," he added.
According to Lipstok, the IMF emphasised that the outlook for accession to the euro zone depends on meeting the Maastricht budget criterion. The IMF recommends trying for a surplus of the government sector budget in the medium-term.
"The Bank of Estonia has given the same recommendations to the government both earlier and in the last economic report and it is necessary to bear these aims in mind in drawing up the budget for 2010 and the following years," Lipstok said.
He said that the IMF placed importance on regional co-operation in banking supervision and the exchange of information and welcomed the agreement for anticipatory ensuring of liquidity being signed between Estonia and Sweden.
The IMF says in its recommendations that ensuring balance between the expenditures and revenues of the budget and economic use of reserves should be the main duties of the government. In the case of the currency board, system stability of the exchange rate of the currency is ensured by means of budget policy measures.
The fund supports the government's decision to freeze the pay rise in the budget sector and to cut budgetary expenses.
From the negative aspect, the IMF added that the stiffness of the Estonian state budget, or fixed expenditures to the tune of nearly 70 percent, requires reaction and reform. The fund also recommends stopping additional tax cuts in the interests of sustainability of the budget policy.
Estonian Ranked 27th Among Most Attractive Travel Destinations
4 March (BNS) - The World Economic Forum's Travel and Tourism Competitiveness Report for 2009 ranks Estonia in 27th place among 133 nations, with Latvia in 48th place and Lithuania in 49th. The rankings indicate how attractive an environment the country is for developing the travel and tourism industry.
Compared with last year, all three nations have fallen slightly. Estonia has fallen by one place since last year, Lithuania by two and Latvia by three.
Estonia earned 6.1 points for the development of its tourism infrastructure, compared to 4.4 points given to Latvia and 3.5 to Lithuania. Cultural resources in the Baltic countries were not very highly valued: Lithuania got 2.4, Estonia 2.3, and Latvia 2.1 points.
Among the new EU states, the highest ranked was Cyprus in 21st place.
The most popular tourism destinations are Switzerland, Austria, Germany, France, Canada, Spain, and Sweden.
Number of Foreign Tourists Staying Overnight in Estonia Increases Year on Year in January
10 March (BNS) - Statistics Estonia said 62 000 foreign tourists stayed at Estonian accommodation establishments in January 2009, 8% more than in the same month last year.
Compared with January 2008 a significantly higher number of tourists from Russia and Finland (up by 37% and 11% respectively) stayed at Estonian accommodation establishments this January.
Russian tourists accounted for one fifth of the foreign tourists that used the services of Estonian accommodation establishments. However, from the other main tourism partner countries-Latvia, Sweden, Lithuania, Great Britain and Norway- the number of tourists was lower than in January 2008.
Among Estonian residents, use of accommodation services was less popular than last January, with one fifth fewer domestic tourists staying overnight at accommodation establishments. The number of persons on business trips declined by 29% and those on holiday by 5%.
In all 112 000 tourists used the services of Estonian accommodation establishments in January 2009, 6% fewer than in January 2008.
In January 717 accommodation establishments offered services to visitors. The visitors had at their disposal 16 200 rooms with 34 600 beds. The occupancy rate was 27%, two percentage points lower than in January 2008.
The average cost per overnight stay was 451 kroons (EUR 28.8), five kroons higher than in January 2008.
Estonians Recycle More Waste than EU Average
9 March (BNS) - According to the latest Eurostat study, residents of Estonia recycle 34% of household waste, which places it among the top EU nations in terms of recycling. The average recycling rate for the 27 member countries was 22%. Germany recycles 46%, Latvia 13%, Lithuania 2% and Finland 26% of household waste.
EU member states landfill 42% of their municipal waste on average. The share of waste landfilled was 53% in Finland, 64% in Estonia, 86% in Latvia and 96% in Lithuania.
The study was based on figures for 2007.
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