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Estonian Review: 10-16 December 2008

19.12.2008

FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS


FOREIGN NEWS

European Council Agrees on Energy and Climate Package

12 December
- At the European Council held in Brussels, the heads of government and state of the European Union approved the plan to spur economic growth in Europe and reached an agreement on the Energy and Climate Package.
According to Prime Minister Andrus Ansip, the topic most important for Estonia is the Energy and Climate Package. The package aims to combat climate change and strengthen the reliability of the energy supply to the European Union. The prime minister expressed satisfaction that the text of the agreement is fully in accordance with Estonia's interests and that it considers the concerns of countries with an insufficient link to the power grids of the rest of Europe.
Ansip mentioned in particular the treatment of electricity import in the Council's conclusions.
“In a situation where, in the future, the energy producers of the European Union will have to buy their carbon dioxide at quota auctions and producers in third countries will have no such obligation, the electricity produced in third countries will be at an advantage. For Estonia and the entire European Union, this is not only an issue of competition, but of energy security as well, and I am pleased that the Council's conclusions take this problem into consideration," Ansip said.In terms of energy security, Ansip stated that the plan for Baltic Sea links proposed by the president of the European Commission is very important. The plan envisages partial funding by the European Union for the construction of energy links, and Estonia hopes that the plan is quickly implemented.
The extension of the period for free-of-charge quotas for electricity producers was also considered positive by Ansip. The Energy and Climate Package provides that energy producers in certain member states, including Estonia, receive, to a limited extent, free emission quotas until 2020. A free quota is one option for supporting domestic electricity producers.
According to Ansip, Estonia will also gain from the solidarity clause in the Climate Package. It states that 10% of the emissions quota will be re-distributed to less wealthy member states, including Estonia. In addition, a further 2% of the quota amount will be distributed to those countries that have reduced their emissions significantly between 1990 and 2005.
“What matters most, however, is the fact that in addition to the objective of combating global warming, the Energy and Climate Package will lay the foundations for a single energy market,” Prime Minister Andrus Ansip emphasised in summary. Another central topic at the European Council was the economic and financial crisis and measures to overcome it. The Council adopted a plan developed by the European Commission to spur economic growth. This proposes a large number of measures aiming to increase consumer confidence and demand, mitigate the impact of the crisis on the labour market and accelerate economic reorganisations to raise its competitiveness.
Prime Minister Andrus Ansip said that Estonia supports a co-ordinated approach to riding out the crisis, stressing at the same time the need to take into account the local situation in member states and their freedom to act.
The plan provides for the allocation of a total of budget funds of 1.5% of the gross domestic product of the European Union. According to Ansip, Estonia's additional measures this and next year will work out to be nearly twice the recommendation in the plan or up to 3 per cent of Estonia's gross domestic product.


Paet: ESDP Must be Updated to Address New Security Threats

12 December
- Foreign Minister Urmas Paet participated in the European Council session. The Council's conclusions addressed the further development of the European Union Security and Defence Policy (ESDP), and the Treaty of Lisbon.
Irish Prime Minister Brian Cowen gave an overview of developments in Ireland regarding the Lisbon Treaty. “It is important to set a timetable for how the ratification of the Treaty of Lisbon will proceed, considering that the treaty could possibly come into effect at the end of 2009,” said Foreign Minister Paet. The foreign policy leaders hope that Ireland will ratify the treaty by November of next year.
While talking about improving the European Security Strategy, Foreign Minister Paet said that 20 years after the Cold War, Europe is standing in the face of ever more complicated dangers and challenges. “Five years after the approval of the European Security Strategy, the responsibilities of the European Union are greater than ever,” said Paet. “With the rise of terrorism and organised crime, society faces new dangers, which are frequently old threats in a more complicated form.” Foreign Minister Urmas Paet stated that dealing with new security threats, such as energy security, cyber security, and piracy, gives a clear goal for updating the strategy.
The European Council discussed developments in the European Security and Defence Policy in 2008. Documents were approved that include updates to the security strategy, agreements on new goals for strengthening the European Union's civilian and military capabilities, and emphasis on the need to be more active in ensuring international security. The EU foreign ministers agreed that in order to fully utilise the defence policy's potential, it is necessary to be more capable, united, and active.
The Council approved a declaration to strengthen the European Security and Defence Policy. According to the Estonian foreign minister, the declaration reinforces the necessity of EU-NATO co-operation and reciprocal support, indicates the need to create a new unified civil-military structure within the Council secretariat to help better strategically plan operations and missions, and addresses the capabilities of the EU over the next few years.
While talking about European Neighbourhood Policy, the foreign ministers felt it was essential to advance Eastern Partnerships and continue co-operation with the Mediterranean Union.


Russian Forces Re-occupied Village of Perev in Georgia

13 December
- The ambassadors of European Union nations to Georgia stated on 13 December that Russian forces did not allow them to enter the village of Perev. Instead of entering the village, the ambassadors saw the heavy machinery of the Russian armed forces moving about as well as helicopters flying. The ambassadors also stated that local residents were not allowed to enter their homes.
Estonian Ambassador to Georgia Toomas Lukk recalled Russia's promise of a few days ago to remove its forces from Perev by 12 December. “Although the media reported and EU observers confirmed that the removal of checkpoints had actually begun and things were being packed up, news came from Perev on 12 December that Russian forces had re-entered the village and Georgian police officers and soldiers had been driven out,” described Toomas Lukk.
“Russia is severely violating the 6-point agreement intermediated on 12 August by President Sarkozy as well as the clarifying agreement of 8 September, in which Russia promised to remove its forces to their pre-conflict positions, out of the areas bordering South Ossetia,” said Lukk.
Estonian Ambassador Toomas Lukk expressed regret that the movements of local people were being restricted, as this violates the UN Declaration on Human Rights on the 60th anniversary of the document. “Since even the Georgian police were forced out of Perev, we are concerned for the safety and security of the residents. The responsibility to protect them falls on the Russian forces, which are currently in control of the area,” emphasised Lukk. The ambassadors of the EU nations, led by the ambassador of the EU Presidency, French Ambassador Eric Fournier, travelled on 13 December to confirm whether the Russian Federation had removed its forces from the village of Perev in accordance with its promises. The village of Perev lies almost 3 kilometres from the so-called administrative border of South Ossetia. The delegation also included the ambassadors of Romania, Holland, and Lithuania, as well as diplomats from Poland, the Czech Republic, Germany, Italy, and Denmark. There were also members of the European Union Monitoring Mission (EUMM) to Georgia present at the location.


Estonia Supports EU Police Mission in Palestinian Territories

16 December
- The Foreign Ministry is supporting the European Union Police Mission in the Palestinian Territories (EUPOL COPPS) with 2 200 000 kroons (140 575 EUR). The money is being allocated form the Foreign Ministry's budget for development and humanitarian aid.
Foreign Minister Urmas Paet stated that it is essential to help with organising and reforming Palestine's civilian police, since that will, in turn, speed up the creation of an independent Palestinian state. “The European Union Police Mission is an extremely necessary initiative so that Palestine can gradually begin taking over responsibility for security on the West Bank,” said Foreign Minister Paet. “It is also important from the standpoint of a successful Middle East peace process,” he added.
The goal of the EUPOL COPPS mission is to support Palestine in creating a sustainable and effective police force on the West Bank and the Gaza Strip, thereby giving Palestine the ability to accept responsibility for maintaining public order. The mission's area of activity currently ends at the West Bank. During 2007, the EU police mission trained 800 civilian police in maintaining public order. Since its creation, the Palestinian civilian police have been neutral and impartial.
EUPOL COPPS is directing Estonia's contribution towards developing information technological capabilities and obtaining IT solutions for the Palestinian civilian police. EUPOL COPPS began working on 1 January 2006 and there are 15 EU member states involved, as well as Norway, Switzerland, Turkey, and Canada.


Estonian and Lithuanian Foreign Minister Discuss Energy Security

12 December
- Foreign Minister Urmas Paet met with Lithuania's new foreign minister Vygaudas Usackas in Brussels. The ministers discussed the necessity of future close co-operation between Estonia and Lithuania.
Paet stated that close and effective co-operation is especially needed in the energy sector. “All three Baltic nations must make an effort to create new electricity connections with Finland, Sweden and Poland. It is also essential to move forward quickly with the Ignalina nuclear power plant project,” he added.
Paet and Usackas agreed that increasing communication between the societies of Estonia and Lithuania is important as well. “Lithuania is the presidency of the Baltic Council of Ministers in the upcoming year and has made a proposal to visibly celebrate the 20th anniversary of the Baltic chain-an event that strongly united the populations of Estonia, Latvia and Lithuania,” said Paet.
The foreign ministers also addressed the economic situation in Estonia and Lithuania. Paet invited his Lithuanian colleague Usackas to visit Estonia in the near future.


Estonia Helps the Needy in North Korea with 500 000 Kroons

11 December
- Estonia is aiding needy citizens in North Korea with 500 000 kroons (32 000 EUR) through the World Food Programme (WFP). The project is being funded from the Foreign Ministry's budget for the development and humanitarian aid.
According to Foreign Minister Urmas Paet, the situation in North Korea is quite alarming. “During the next few months, 8.7 million people will require immediate food aid. Prognoses for next year suggest that the situation will worsen, because the ruling regime cannot independently produce enough food for the population,” said Foreign Minister Paet. The people suffering the most from the food shortage are children, young people, the mothers of babies, and the elderly.
The productivity of the North Korean agricultural sector has been hindered by the floods of the last few years, the long-time decline of soil fertility, insufficient fertilising, and a lack of fuel. The result is great shortages that force the population to suffer under extremely difficult conditions due to the scarcity of food.
The WFP estimates that the amount of food aid needed to cover the requirements of 9 million people until the next harvest in October 2009 is 800 000 tonnes. The World Food Programme requires almost 8 million American dollars a week to guarantee the urgently needed food aid for North Korean people. Estonia decided to contribute through the WFP to do its part in helping to alleviate the famine in North Korea.


Georgian Officials Studying Estonian Municipal Government System

16 December
- A group of Georgian public servants arrived in Estonia on a three-day visit to study the local municipal government system and regional policy.
The chairman of Georgia's state commission on effective governance and territorial planning reform, Vano Khukhunaishvili, and members of the commission met with Regional Affairs Minister Siim Kiisler. The meeting was attended by Interior Ministry officials dealing with regional matters and representatives of the associations of cities and municipalities.
The Georgian officials had the opportunity to familiarise themselves with the Estonian municipal government system. They also received an overview of the main directions of regional policy and development questions.
The Georgian delegation also met with Foreign Ministry officials. Meetings with members of the parliamentary group for ties with Georgia and State Chancellery representatives were also on their agenda.
On the final day of their stay, the Georgian officials visited a local municipal government outside of Tallinn.


Japan to Give High Order to Estonian Choir Conductor

12 December
- Japanese Ambassador to Estonia Hitoshi Honda will be giving the Order of the Rising Sun over to Tiia-Ester Loitme, conductor of the Ellerhein Girls' Choir.
Japan confers the Order of the Rising Sun for achievements in the sphere of culture, education, research and the social sphere both to citizens of Japan and foreigners, the Japanese embassy said.
Japanese Prime Minister Yuji Fukushita signed the decision on this year's recipients of the order on 3 November and Tiia-Ester Loitme is included among the 75 foreigners to be decorated with the order. Loitme will receive a 4th Class Order of the Rising Sun, Gold Rays with Rosette.
Japan's decision to decorate Loitme was thanks to her remarkable contribution to the development of choral music in Japan and in the development of friendly relations between Estonia and Japan.
Tiia-Ester Loitme, chief conductor of Ellerhein, has been in close co-operation with Japanese conductors and composers Chifuru Matsubara and Ko Matsushita. Loitme has given three successful concerts with Hellerhein in Japan, in 1995, 2000, and 2005.
The Meiji Emperor of Japan established the Order of the Rising Sun in 1875, and it comes second by its prestige after the Order of the Chrysanthemum.
Conferment of decorations is organised in Japan by the prime minister's office, but the decorations are issued in the name of the Emperor of Japan.



DOMESTIC NEWS

Estonia's First Jewish Museum Opened in Tallinn

15 December
- Estonia's Jewish community opened the country's first Jewish museum in Tallinn.
Although the first mention of Jews in Estonia dates back to 1333, a permanent community did not come into being until the beginning of the 19th century. The exposition of the museum showcases the life of the Estonian Jewry from the early 19th century up to the present day.
The museum consists of four parts: the main exposition, an archive, a reading room, and a virtual branch at http://eja.pri.ee.
The main exposition displays photographs, documents and other material contributed by private individuals, archives and other museums. The items give an idea of Estonian Jews' religious life, the history of the community until 1940, and life under the Soviet and German occupation regimes. A separate display tells the story of the restoration of Jewish community life from 1988 till the present day.
The exposition includes material about the activity of youth and student organisations, anti-Semitism, the struggle for the right to emigrate to Israel under Soviet rule in 1967-1988, and the Jews' contribution to the development of education, science, art, sports and enterprise in this country.
The archives of the museum contain a multitude of photos, documents, objects and their copies. Books, articles, video material and music performed or written by Jews has been collected in the reading room.
The virtual archive of the Estonian Jewry is a collection of articles, memoirs, reminiscences, genealogical data and photographs.
In addition to the permanent exhibition, the museum plans to organise temporary displays dedicated to particular themes.
The creation of the museum, located at the Jewish community centre at 16 Karu Street in Tallinn, became possible thanks to the Jewish history enthusiast Mark Robak, who also became its first director.


Estonia Ranks Fourth Among EU27 by Birth Rate

16 December
- Estonia ranks fourth among member states of the European Union in terms of births per 1,000 population, it appears from the data released by Eurostat.
According to the initial demographic estimates published by Eurostat, Ireland has the highest birth rate in 2008 at 18.1 per 1,000 inhabitants. Next come Britain with 13, France with 12.9, Estonia with 12.2, Sweden with 11.9 and Denmark with an estimated 11.8 births per 1,000 population.
Germany (8.3), Malta and Austria (both 9.2), Bulgaria (9.4) and Italy and Portugal (both 9.6) have the lowest rates.
The Eurostat estimate puts the average birth rate for the EU at 10.8 per inhabitants.


Number of Émigrés Returning to Estonia More Than Triples in 2007

10 December
- The number of people returning to Estonia from foreign countries who applied for a subsidy from the Estonian Migration Fund more than tripled in 2007 compared with 2006.
The Estonian Migration Fund paid out 2,005,000 kroons overall to 144 applicants, or on the average 13,924 kroons (EUR 890) per returning person.
The people returning to Estonia mostly came from Russia, Ukraine and Georgia, numbering respectively 59, 15 and 10.
The number of people coming back from Western countries also increased last year. Of the applications, 14 came from Finland, nine each from the United States and Germany, and six from Sweden. Among the recipients of the subsidy, there were people who left behind their life in Argentina, Cyprus, and Thailand.
Sixty percent of the people returning to Estonia in 2007 were of working age, 30 percent were children and 10 percent people of retirement age.
The subsidy to help people finance their return is paid to ethnic Estonians and Estonian citizens who emigrated from Estonia at least 10 years ago.



DEFENCE NEWS

Estonian Parliament Extends Defence Forces' Kosovo, Bosnia Missions

10 December
- The parliament on Wednesday passed bills extending the Estonian Defence Forces' peacekeeping missions in Kosovo and Bosnia-Herzegovina until the end of next year.
According to the bill extending the Kosovo mission, which was passed in the 101-seat chamber with 61 votes, Estonia would continue in the composition of the NATO-led KFOR (Kosovo Force) mission with up to 40 soldiers.
At present there are 30 Estonian soldiers on mission in Kosovo. Most of the contingent is a 26-strong reconnaissance platoon made up of members of the paramilitary Defence League.
For next year about 33 million kroons (EUR 2.1 mln) has been earmarked for the Kosovo mission.
The bill dealing with the mission in Bosnia and Herzegovina was passed with 63 votes. It extends the participation of up to five staff officers and staff non-commissioned officers in the EU-led peacekeeping mission Althea. At present there are two Estonians serving in Sarajevo.
The cost of the mission has been set at 1.5 million kroons.
In connection with successful economic development of Bosnia and Herzegovina, the European Union has considerably contracted the number of its troops in the country. Estonia nevertheless regards it as important to continue the presence of its personnel in the operation Althea until the operation has officially ended.
The Estonian Defence Forces have taken part in the peacekeeping missions in Bosnia and Herzegovina since 1995 and in Kosovo since 1999.


Britons Fallen in Estonian War of Independence Remembered in Tallinn

12 December
- British diplomats and representatives of the Estonian Defence Forces laid wreaths on the graves of British seamen who died in the Estonian War of Independence in Tallinn.
The arrival of a British fleet in Tallinn 90 years ago was a sign of British recognition of Estonia's independence. Their arrival brought a turning point in the War of Independence, the achievement of which would have been very complicated without British armed forces, said Peter Carter, the British Ambassador to Estonia.
The ceremony also was attended by members of the crew of the British naval ship Edinburgh, which arrived in Tallinn on the occasion of the 90th anniversary of the British participation in the War of Independence.
“Ninety years to a day has passed and the Royal Navy is back in Tallinn like a true friend of Estonia. I am pleased that the commander of the HMS Edinburgh and its crew are here today in order to remember British seamen who fell for Estonia's freedom," the ambassador added.
Lt. Gen. Ants Laaneots, commander of the Estonian Defence Forces, said co-operation between Estonia and Great Britain lasted until today. "Three Sandown class mine hunters acquired from Great Britain have considerably increased the capability of our navy," Laaneots said, adding that soldiers of the two countries were fighting against a common enemy in Southern Afghanistan.
A squadron of the British Baltic Sea fleet arrived in the roads of Tallinn on 12 December 1918. It exerted decisive influence on the course of the War of Independence.
One hundred and eleven British seamen and airmen fell fighting for Estonia's freedom on the Baltic Sea. In addition to the 15 British seamen's graves at the Defence Forces cemetery in Tallinn, British soldiers have also been buried on the islands of Naissaar and Vaindloo and in Kuressaare.



ECONOMIC NEWS

Currency Rates in Kroons
(Bank of Estonia)


Tallinn's Nordic Hotel Forum Gains Four-Star Status

15 December
- The business and conference hotel Nordic Hotel Forum that opened in Tallinn's Central Viru Square last December received an official four-star certificate from the Estonian Hotels and Restaurants Association for its first anniversary.
Feliks Magus, board chairman of Nordic Hotel Forum, said the stars are not obligatory for hotels but their existence is very important for clients.
Magus said the first year in operation had been successful for Nordic Hotel Forum. "Despite the fact that the opening of the hotel fell into the unfavourable end-of-year period, Nordic Hotel Forum's occupancy rate at the peak of the season was 62 percent. Such occupancy is a good result for the first year and does not lag much behind hotels that have been in the market for years," he said.
Nordic Hotels, established in 2002 with the aim of developing and operating hotels in Tallinn and other Baltic capitals on the basis of rental and management contracts, is a hotel chain based on Estonian capital. Nordic Hotels operates Nordic Hotel Forum in Tallinn and Nordic Hotel Bellevue in central Riga.


Number of Tourists Accommodated in October Up 6 Percent on Year

16 December
- A total of 179 000 tourists stayed at accommodation establishments in Estonia during October, marking a 6 percent improvement over the same month last year, Statistics Estonia said.
Foreigners made up 61 percent of the total number of accommodated tourists. Unlike in the previous few years, the number of foreign tourist in October increased in comparison with the preceding year.
The number of accommodated tourists from Estonia's neighbouring countries Russia, Finland and Latvia, as well as from Germany, Lithuania, and Italy, increased compared with October 2007.
The number of tourists from Norway continued to decline, whereas the number of tourists from Sweden stayed on the level of 2007.
In total, 109 000 foreign tourists used the services of accommodation establishments during the month, 7 percent more than in October 2007.
The number of Estonian residents staying at accommodation establishments during the month was 69 000, which is 2 500 more than in the same month a year ago. More than one-fifth of the Estonian visitors used the services of health resorts or accommodation establishments providing health resort services.
The number of Estonian residents staying at these kinds of accommodation establishments was by more than a thousand bigger than in October 2007.
In October there were 16 900 rooms and 36 200 beds available to visitors at 717 accommodation establishments across Estonia. The average room occupancy rate was 39 percent.




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