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Estonian Review: 3-9 December 2008
12.12.2008
FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS
FOREIGN NEWS
Paet: European Union Enlargement Must Continue in Accordance with Earlier Agreements
8 December - Foreign Minister Urmas Paet participated in a session of the European Union General Affairs and External Relations Council (GAERC) in Brussels. The situation in the Western Balkans and the Middle East peace process will be addressed in the external relations session. During the general affairs session, the ministers will discuss preparations for the European Council taking place this week, as well as issues related to further European Union enlargement.
The foreign ministers discussed European Union enlargement issues, based upon the European Commission document on enlargement strategy released in November and progress reports. The foreign ministers approved conclusions that gave further guidelines for implementing enlargement policy. The attention of aspiring EU nations will be directed towards unfulfilled requirements, and they will also receive concrete advice for continuing reforms. It is important to continue the enlargement process in accordance with the bases agreed upon in 2006, said Paet. We support Turkey and Croatia's reform processes and the advancement of their accession negotiations, Paet added.
The European Union foreign ministers expressed satisfaction that the EU rule of law mission EULEX Kosovo will begin its activities on 9 December. Foreign Minister Urmas Paet stated that the international community and various parties have co-operated for a long time to ensure that the mission will be implemented successfully in all of Kosovo. The activities of the rule of law mission, in which Estonian experts are also participating, will certainly have a good influence on the Western Balkan region, including Serbia, and help to guarantee stability in the entire area, said Paet. According to Foreign Minister Paet, it is essential for the mission to begin fulfilling its responsibilities as soon as possible in co-operation with Kosovan institutions as well as other international organisations that are present there.
EULEX Kosovo must quickly reach its full strength and smoothly take over responsibilities from the UN Interim Administration Mission in Kosovo, Paet noted.
The foreign ministers' council confirmed in its conclusions that it completely supports the Western Balkans' European perspective. However, the Estonian foreign ministers says that the council also emphasised that every nation's accession to the European Union depends on concrete progress and the fulfilment of necessary conditions and criteria, as well as the quick resolution of the problems pointed out in progress reports.
During the general affairs session, the foreign ministers discussed important topics of the European Council taking place from 11-12 December. This Council will focus first and foremost on the economic and financial situation as well as climate and energy matters.
The Estonian foreign minister asserted that it is crucial for the Council to reach an agreement on the climate and energy packet. It is necessary for Estonia that a resolution for electricity import issues be found, Foreign Minister Paet asserted. It is important to Estonia that the import of electricity from third countries to the European Union internal market be included in the quota trade scheme, Paet remarked. Equal competition conditions must be created for all participants in the EU internal market; this is also a matter of energy security, Paet specified.
Estonian and Finnish Prime Minister Approve Co-operation Priorities
3 December - Prime Minister Andrus Ansip and Finnish Prime Minister Matti Vanhanen agreed on the co-operation priorities between the two countries, which are the fields of IT and e-services, the free movement of people and knowledge, and the development of an attractive business environment.
When finding common priorities, the prime ministers proceeded from the propositions in the Estonia-Finland co-operation report that was prepared in May of this year. The co-operation priorities have been approved by the governments of both countries during cabinet meetings. Prime Minister Andrus Ansip praised the great work done by both parties: The fact that in half a year, we have gone from a vision document to co-operation priorities approved at the government level shows a good intention to achieve common goals.
In the field of information and communication technology, the prime ministers see the greatest development potential mainly in e-governance and e-services.
In the expansion of the free movement of people and knowledge, the prime ministers pointed out the importance of such common projects that promote the fields of education, labour markets, social well-being and healthcare.
The prime ministers also stressed the importance of the development of a safe and attractive business environment.
At the meeting, the topics to be addressed at the European Council, to be held on 11-12 December, were also discussed. These included the EU Energy and Climate Package, the global economic crisis, and the future of the Lisbon Treaty.
NATO to Strengthen Contribution to Afghanistan, Fight against Somali Coastal Pirates
3 December - At the meeting of NATO foreign ministers in Brussels, the foreign ministers focused on the NATO-led Afghanistan operation and the situation in Kosovo, as well as combating piracy off the shores of Somalia. The NATO-Ukraine and the NATO-Georgia Commission both met as well, the latter for the first time within the foreign minister format.
The NATO foreign ministers agreed that it is important for NATO to make a stronger contribution to improving the security situation in Afghanistan. We must increase support for Afghanistan's police and military training, so that Afghanistan will be capable of shouldering increasingly more tasks on its own, said Foreign Minister Paet. He stated that the contribution to the reconstruction of Afghanistan must be strengthened as well. It is not possible to achieve success by purely military means, he added.
The NATO foreign ministers also emphasised the importance of preventing civilian deaths and the necessity of closer co-operation with Pakistan and Central Asia in order to stabilise the situation in Afghanistan.
The foreign ministers approved the extension of NATO's training mission in Iraq and the activities of the mission in Kosovo.
Combating piracy off the shores of Somalia was also addressed at the meeting. Paet stated that the protection of NATO World Food Programme ships will continue, as will increasing security in Somali waters. A European Union military mission is beginning in the area, and NATO is also prepared to continue activities there to improve the security situation.
In the NATO-Georgia and NATO-Ukraine Commissions, the foreign ministers decided in favour of more intense co-operation with these nations within the framework of the yearly action plan of each commission.
Foreign Minister Paet confirmed Estonia's support for Georgia's territorial integrity and sovereignty within internationally recognised borders. The Georgian government has played a constructive role in the efforts of international organisations to find a long-term solution to the Russia-Georgia conflict, Paet emphasised. The NATO-Georgia Commission has a central role in achieving NATO membership for Georgia.
The NATO foreign ministers confirmed that a democratic, stable, and successful Ukraine is the best security guarantee for the Black Sea region, and therefore supported unanimously Ukraine's Euro-atlantic aspirations. Minister Paet called upon Ukraine to consult with NATO more actively on all levels.
OSCE is Proper Place to Resolve Europe's Security Concerns
5 December - At the 16th meeting of the foreign ministers of the Organisation for Security and Co-operation in Europe (OSCE) in Helsinki, Foreign Minister Urmas Paet emphasised that the security sector demands the OSCE's close attention. The OSCE's strength lays in common values and the principle of consensus within the organisation. Instead of searching for a new structure, we should use the OSCE's existing means more efficiently to strengthen Europe's security, he added.
Paet stated how unfortunate it is that OSCE monitors currently have not gained access to South Ossetia, and Russia still has not completely fulfilled the agreements from after the August conflict by removing its forces from Georgian territory. We must continue our efforts to achieve long-termstability not only in Georgia, but in Transnistria and Nagorno Krabakh as well, he added. Estonia is also still concerned about the security and internally displaced refugee situation in Georgia.
Foreign Minister Paet touched on the OSCE's activities after the Russia-Georgia war, the development of stability and democracy in Afghanistan, and the realm of cyber security in his speech. Paet also emphasised the OSCE's role in ensuring human rights, election monitoring, developing an active civil society, and the necessity of reaching goals through co-operation with civil society organisations.
Paet also called upon nations to join the European Convention on Cybercrime. For Estonia, the fight against cybercrime is very important. The number of nations that have joined the convention has grown compared with last year, Paet noted.
Creation of Common Energy Market Main Goal for Baltic States in Near Future
6 December - Estonia gave the presidency of the Baltic Council of Ministers over to Lithuania in Viljandi.
At the final session of the Baltic Council of Ministers during Estonia's presidency, Foreign Minister Urmas Paet emphasised that the success of one Baltic nation affects the others in a positive way, and the opposite is true as well.
In the joint document approved at the meeting, the members of the Baltic Assembly and the foreign ministers confirmed that co-operation in the name of a common Baltic energy market is an important goal, and the creation of a Baltic-Nordic electricity market would be a practical expression of this. In order to create a common Baltic energy market, we must harmonise international laws and agree on the conditions of the market, said Estonian Foreign Minister Urmas Paet, talking about future actions to form a unified Baltic and Nordic energy market. Paet stated that the basis for forming a unified electricity market is establishing new connections from Estonia to Finland and from Lithuania to Poland, and also from Latvia or Lithuania to Sweden. The Baltic foreign ministers also expressed the need to develop a common regional transport system. The further development of transport connections should also remain on the co-operation agenda of the EU, the Baltic Sea states, and the Baltic states, said Paet. Co-operation regarding connections, ensuring safe traffic, and logistics is also essential, he added.
Paet stressed that the Baltic states must stand up for environmental protection, including the formation of the Baltic Sea Strategy. The Baltic Sea is now carrying loads at its capacity, and every careless step could bring far-reaching pollution as a consequence, emphasised Paet, stressing the need to protect the sea that unites the Baltic Sea states. Giving an overview of Estonia's presidency of the Baltic Council of Ministers and the priorities of Baltic co-operation, Foreign Minister Urmas Paet placed particular emphasis on co-operation in the areas of energy, safety (including cyber defence), environment, transport, and logistics, as well as the fight against cross-border crime and the exchanging of information. Co-operation with other regional alliances in Baltic and Nordic co-operation and searching for solutions to the economic crisis must be priorities of Baltic co-operation, said the Estonian foreign minister.
Estonian Foreign Minister Supports EC's Communication on Eastern Partnership
5 December - Foreign Minister Urmas Paet expressed his support for the European Commission's Communication on Eastern Partnership, which was released on 3 December.
The European Commission's Communication on Eastern Partnership provides concrete and comprehensive guidelines for strengthening the democratic, social, and economic solidarity of the European Union and its Neighbourhood Policy nations, as well as for improving political dialogue.
Foreign Minister Urmas Paet stated that strengthening the Eastern Dimension has great significance for the European Union's eastern neighbours, since it is an expression of the European Union's long-time interest in the region and offers them a serious strategic choice for further development. The Communication on Eastern Partnership offers the European Union's eastern neighbours concrete aid and co-operation opportunities in addition to political solidarity, which help to increase stability, security, and economic well-being in the EU neighbourhood, said Foreign Minister Paet, stating that this is an important step for the closer integration of the European Union and its eastern neighbours.
The foreign minister emphasised that strengthening the Eastern Partnership is useful for European Union member states as well as all of the Union's neighbours to the east. A stable neighbourhood, good administrative practices, and the growth of well-being will in turn increase the safety and stability of all Europe, said Paet.
The Communication on Eastern Partnership includes Armenia, Azerbaijan, Georgia, Moldova, Ukraine, and Belarus. The packet is a summary document from the Commission in response to proposals from Poland, Sweden and the Czech Republic to strengthen the Eastern Dimension of the European Neighbourhood Policy (ENP), as well as a continuation of the goals for strengthening the ENP's Eastern Dimension expressed in the conclusions of the extraordinary European Council sessions of 19-20 June and 1 September.
The European Neighbourhood Policy as a whole includes the European Union's eastern neighbours as well as the Mediterranean nations Egypt, Algeria, Tunisia, Jordan, Lebanon, Libya, Syria, Israel, and the Palestinian Authority.
Estonian, Russian Foreign Ministers Agree to Hold Political Consultations
5 December - Foreign Minister Urmas Paet met with Foreign Minister of the Russian Federation Sergei Lavrov in Helsinki.
The ministers discussed the status and further developments of Estonia-Russia relations. Paet and Lavrov agreed that Estonia-Russia political consultations will take place at the beginning of next year in Tallinn to address in detail the various aspects of Estonia-Russia relations. The ministers also addressed opportunities to manage border queues, the perspectives on the construction of a new bridge in Narva, and the conclusion of a new social insurance agreement.
Paet stated that the rapid conclusion of the social insurance agreement is important for many elderly people, in order to ensure that they will receive their pensions for work done in either nation.
Another topic was an agreement on the prevention and resolution of emergency situations and reciprocal aid, which Estonia is ready to sign. We also expressed a desire to conclude a diplomatic real estate agreement and the readmission protocol related to the EU-Russia readmission agreement, Paet added.
The Estonian foreign minister also expressed hope that Russia's accession negotiations with the World Trade Organisation would continue very soon.
Paet and Lavrov also discussed ensuring that citizens living along borders get long-term visas in relation to a European Union-Russia visa facilitation agreement.
Paet Met with Next European Union Presidency
4 December - Foreign Minister Urmas Paet met with Karel Schwarzenberg, the foreign minister of the next European Union Presidency, the Czech Republic, and Albanian Foreign Minister Lulzim Basha in Helsinki.
Paet and Schwarzenberg discussed the Czech Republic's European Union Presidency during the first half of next year. According to Minister Paet, Estonia would like for the European Union to progress in developing the Neighbourhood Policy's eastern direction, strengthening the unified energy policy, and in holding enlargement negotiations with Croatia and Turkey and visa freedom discussions with the Western Balkans. The views of Estonia and the Czech Republic coincide for the most part on all major issues, Paet added.
Paet invited Schwartzenberg to pay a visit to Estonia.
Albanian Foreign Minister Lulzim Basha informed Paet during their meeting that Albania plans to open an embassy in Tallinn during the next year. Basha recognised Estonia's support for Albania's path towards NATO and European Union membership.
Paet stated that Estonia is satisfied with NATO's decision to invite Albania and Croatia to join the alliance. Estonia will continue to support and consult for Albania, and hopefully Albania will move forward quickly towards the European Union, he added.
The Albanian foreign minister expressed interest in Estonia's experiences with forming a liberal economic environment and a stable monetary system, as well as in opportunities to use information technology in the public sector.
DOMESTIC NEWS
Rescue Board, Border Guard, and Police Most Trusted Institutions
8 December - The Rescue Board, the Border Guard Board and the Police Board enjoyed the highest trust ratings among Estonia's state institutions in November, a survey by pollster ES Turu-uuringute AS indicates.
These three institutions were trusted by 93 percent, 87 percent and 83 percent of respondents, respectively. The trust rating of the police, which traditionally stands slightly above 80 percent, climbed by four percentage points from October. The highest rating ever given to the police is 84 percent, measured in January 2008.
The trust rating of the Defence Forces was 78 percent and of the public broadcasting company 76 percent.
The Bank of Estonia and the Tax and Customs Board were seen as trustworthy by 75 percent of respondents. The voluntary defence corps and the president both had the trust of 64 percent of respondents.
Of international organisations, the European Union enjoyed the trust of 65 percent and NATO of 54 percent of respondents.
DEFENCE NEWS
Baltic Defence Ministers Discuss Joint Procurement
4 December - Estonian Minister of Defence Jaak Aaviksoo, Latvian Minister of Defence Vinets Veldre, and Lithuanian Minister of Defence Juozas Olekas stressed the need to strengthen co-operation in the spheres of both army development and joint procurements following their meeting in Birštonas, Lithuania.
The defence ministers stated that co-operation between the Baltic armies must continue after a joint infantry battalion has been contributed to NATO Response Forces, NRF-14.
According to Defence Minister Aaviksoo, it is also important to strengthen the co-operation between the Baltic states in the sphere of joint procurements in the future. Considering the tight economic conditions, joint procurements would considerably contribute to conserving the financial resources of Estonia, Latvia and Lithuania. Also, aside from saving resources, similar equipment, purchased within the framework of such joint procurements, would also promote other projects of co-operation, Aaviksoo said.
Until now, mostly ammunition has been purchased under joint procurements by the Baltic states.
The ministers were also given an overview of the work, so far completed by a task force, established for providing a common air security project of the Baltic states. The goal of the task force is to find a solution for supporting air security of the Baltic states after 2018. A good start has been made by drawing up an analysis, which will be completed by the deadline established by the ministers, which is 2010, Aaviksoo confirmed.
The defence ministers also approved all the suggestions for amendments to be introduced into the curricula of the Baltic Defence College made by the Commanders of the Defence Forces. The main amendment includes the annual organisation of joint staff courses at the Baltic Defence College.
The meeting of the Baltic defence ministers takes place bi-annually. The previous meeting of the committee of the ministers took place last March in Latvia, and the next is scheduled to take place in 2009 in Estonia. The meeting of the defence ministers was preceded by the Baltic Military Committee of the Commanders of the defence forces of all three Baltic states from 27-28 November in Pärnu, Estonia.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
Estonian R&D Expenditure Up 15 Percent in 2007
3 December - Expenditures on research and development in Estonia reached 2.7 billion kroons (EUR 172.5 mln) in 2007, marking an increase of 15 percent over the year before, Statistics Estonia said.
Businesses put in a great performance, as their R&D expenditures grew at an annual rate of 22 percent, while expenditures by the non-profit sector, or universities and other institutions, grew by only 9 percent.
R&D expenditures by the enterprise sector accounted for 47 percent of the gross national R&D expenditure last year, but the share of the working hours spent on R&D in that sector remained at 34 percent.
Over the years 2001-2007, the average growth rate of the intensity of R&D in Estonia was 8 percent, which places the country in second place among European Union member states.
In the table ranking the 27 EU states by the rate of growth of R&D intensity, Cyprus was the leader with an average rate of 10 percent. Runner-up Estonia was followed by Latvia with 7 percent. The intensity of R&D is measured by the ratio of R&D expenditures to gross domestic product (GDP).
The spectacular growth of Estonia's R&D intensity is especially notable considering that it came about against a backdrop of rapid GDP growth. In several developed industrial nations and in the European Union on average the ratio declined despite moderate rates of GDP growth.
Number of Tallink Passengers Up 19.5 Percent in November
3 December - The AS Tallink shipping group of Estonia served 574,999 passengers on all its routes in November, 19.5 percent more than in the same month last year.
In November the biggest rise in the number of passengers took place on the route between Latvia and Sweden, where the annual rate of increase was 40 percent. Tallink attributed the increase to the replacement of the Vana Tallinn passenger ferry with the cruise ship Festival.
Passengers on the Latvia-Sweden route numbered 28,005 during the month.
On the Estonia-Finland route, Tallink served a total of 279,915 passengers during the month, 31 percent more than a year ago.
On the Estonia-Sweden route passengers numbered 48,920, on the Finland-Sweden route 213,883, and on the route between Finland and Germany 4,276.
The number of cargo units shipped declined by 23.2 percent to 22,926. Cargo shipment by Tallink between Estonia and Finland and Estonia and Sweden declined by 21 percent and 15 percent respectively.
The number of passengers carried in the first quarter of the 2008/2009 financial year grew by 18.3 percent to 1.78 million.
Turnover of Rimi Estonia Grew on Year
8 December - The January-November turnover of the Rimi Estonia chain grew by 8 percent to 5.5 billion kroons (EUR 351 mln) against the same period last year.
In Latvia, Rimi grew by 19 percent on year to 577.1 million kroons, while the turnover of Rimi Lithuania grew by 12 percent to 246.6 million euros.
Overall in the Baltic countries, Rimi's turnover grew by 14 percent to 1,177.1 million euros.
In November the turnover of Rimi Estonia was 488 million kroons. The growth against last November was 2 percent.
The Rimi retail chain has 230 stores in the Baltic countries, of these 73 in Estonia, 97 in Latvia and 60 in Lithuania.
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