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Estonian Review: 26 November - 2 December 2008

05.12.2008

FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS


FOREIGN NEWS

Paet: NATO's Close Co-operation with Ukraine and Georgia Will Continue

2 December
- Foreign Minister Urmas Paet participated in a meeting of the NATO foreign ministers in Brussels. The foreign ministers discussed further co-operation with Ukraine and Georgia and relations with Russia.
The NATO foreign ministers emphasised the need to implement the decisions of the Bucharest summit as well as the importance of adhering to the values that form the backbone of the alliance. Foreign Minister Paet stated that democratic nations that fulfil requirements should have the opportunity to join NATO in the future.
According to Paet, Georgia and Ukraine have fulfilled the requirements set by NATO and shown a firm desire to continue fulfilling tasks to reform their nations. “Therefore Georgia and Ukraine would be ready to join the Membership Action Plan (MAP). However, since the MAP, which was initially created as a technical instrument, is now overly politicised, they must continue to fulfil the Bucharest summit decisions within other existing formats,” said Paet. The foreign minister stated that NATO's close co-operation with Ukraine and Georgia must continue within the framework of the NATO-Ukraine and NATO-Georgia Commissions.
While talking about NATO-Russia relations, Paet stated that the unilateral recognition of South Ossetia and Abkhazia is against international norms and is therefore unacceptable. “NATO is a values-based alliance that considers international law to be very important,” emphasised Urmas Paet. Paet stated that continuing communication with Russia is necessary, but it can be based upon the events of the past few months, including the attack on Georgia.
Also discussed at the NATO foreign ministers' meeting were topics related to the NATO-led Afghanistan operation and the situation in Kosovo and the Western Balkans in general. The NATO-Ukraine and the NATO-Georgia Commissions both met as well, the latter for the first time within the foreign minister format.


President Says Baltic Sea Strategy Must Be Open To Change

26 November
- The Baltic Sea strategy must be flexible and remain open to changes both in the European Union and on the world scene, while paying special attention to regional integration and free movement of knowledge, the Estonian president says.
Addressing a conference in Tallinn dedicated to the Baltic Sea Region Strategy, Head of State Toomas Hendrik Ilves said the EU membership of Poland, Lithuania, Latvia and Estonia has practically turned the Baltic Sea into an inland sea of the bloc. He said this means an improved environment for finding solutions to regional challenges which in turn should lead to significant progress in the EU as a whole.
The region has a wide range of problems, starting with the environment and the economy and ending with education and innovation, not to mention social and cultural issues, Ilves said.
In his words, the Baltic Sea strategy has to be open to changes that may change strategic priorities. Estonia is currently focusing on three policy areas: economic and spatial integration, the marine environment and shipping, and a knowledge-based society.
Integration of the western and the eastern parts of the Baltic Sea deserves special attention as the mainstay of the bloc's economic integration -- free movement of goods, capital, people and services -- is not working properly yet, Ilves said. Connection of power networks and improvement of the energy infrastructure to create a well-functioning internal energy market is a crucial field of co-operation, and full liberalisation of the services sector is another.
Thirdly, a knowledge-based society needs particular attention, Ilves said. "Our wish is to achieve within the EU an environment conducive to research and development. Let us begin creating this environment on Baltic shores," he said.
The president stressed that all regional organisations and co-operation platforms have a specific role in the strategy and the programme should support rather than duplicate their activities.
Considering the diversity of the countries around the Baltic Sea, the Baltic Sea programme could be a good example and a testing ground for the EU's aspirations to create a well-functioning internal market, Ilves said. With regional success, good practices could be employed elsewhere as well. In view of this, the Baltic Sea strategy should set ambitious goals and not just aim at rearranging regional policies.


Foreign Minister Gives Speech on Fighting Corruption at Doha Conference

30 November
- Foreign Minister Urmas Paet gave a speech at the International Conference on Financing for Development in Doha, Qatar. Foreign Minister Paet emphasised that financing development must go hand-in-hand with reducing corruption and battling against tax evasion.
In his speech, Foreign Minister Urmas Paet emphasised the role and responsibility of developing nations in achieving success. “In order to achieve economic development, developing nations must focus on battling corruption and tax evasion,” said Paet. “Neither the donors nor the developing nations should allow tax evasion, a black economy, under-the-table payments, and corruption,” he stressed. The Estonian foreign minister stated that donor states and those receiving aid must rally together their domestic resources to ensure the effectiveness of development. “Regardless of the global economic crisis, we cannot back down from our primary goal-decreasing poverty,” emphasised Foreign Minister Paet. “Half of the world's population lives in total poverty, with an average income of less than one dollar a day. Developing and transitioning countries must decisively take responsibility for ensuring progress and strengthening their domestic financial systems,” he added. “The principles of a market economy, a strong tax policy, free trade, the existence of competition, co-operation with the private sector, and an effectively regulated financial market are all requirements for economic development and reducing poverty, and developing nations should use them to guide their activities,” explained the foreign minister.
Along with pulling together domestic resources, the Estonian foreign minister stated that the establishment of good governing practices is also very important. “If the government bases its activities on the law, then there is hope for more rapid development,” Paet acknowledged.
Paet stated that Estonia will continue to contribute to both development co-operation and humanitarian aid. “Helping societies that are in a worse situation than we are is the mission of every respectable nation,” said the foreign minister.
The International Conference on Financing for Development that took place from 28 November - 2 December in Doha, Qatar was attended by the leaders and government representatives of all the donor nations and developing countries in the world. During the conference, the Final Report was adopted that marks the halfway point in achieving the UN Millennium Development Goals.


Estonia Gives Safety Equipment to Apron Service Team of Kabul Civilian Airport

26 November
- Estonian Charge d'Affaires in Afghanistan Daniel Erik Schaer, along with the Estonian military airport apron service team, presented Kabul's civilian airport with safety equipment that will help to co-ordinate the movement of flight vehicles on the ground. The equipment was procured through a joint development co-operation project carried out by the Estonian Foreign Ministry and the non-profit organisation Air Base Officers' Collective (MTÜ Lennubaasi Ohvitseride Kogu), which cost a total of 42 000 kroons. The leader of the project was the head of the apron service team at Kabul International Airport, Senior Sergeant Major Kaido Külasalu.
The goal of the project is to improve the operational capabilities of Kabul's civilian airport and increase the safety on the ground at the airport. The local members of the airport's apron service team were given electron top-lights to affix to the roofs of cars, reflective vests, directing sticks, and sets of car stickers reading “FOLLOW ME” and “KABUL AIRPORT”.
Estonian Charge d'Affaires Daniel Erik Schaer stated that Kabul Airport is under a lot of strain due to the comprehensive rebuilding of Afghanistan, and they recently opened a new terminal that is being used to fly 26 000 people on their pilgrimages, or hajjis. Regularly scheduled airliners, civilian and charter planes, and transport flights all land at Kabul Airport. “Adopting the use of quality safety equipment will help to improve the quality of service at the airport, and will also motivate local officials to organise their work better and further develop safety-related sectors at the airport,” said Schaer. With the current project, Estonia is contributing to the safety of Kabul International Airport and increasing the capabilities of the airport.
Afghanistan is one of Estonia's priority development co-operation partners. Since September 2006, an Estonian civilian representative has worked in Afghanistan, organising the implementation of development co-operation projects there. Starting in March of this year, an Estonian medical expert has been co-ordinating the development of the health care sector in Helmand province.


Estonian, Portuguese Justice Minister Demonstrate ID card Facilities to Barroso

27 November
- Estonian Justice Minister Rein Lang and his Portuguese colleague Alberto Costa demonstrated to European Commission President Jose Manuel Barroso a new opportunity for performing commercial register transactions in both countries with the help of either country's ID card.
Lang said this is probably the first time ever that one country's register accepts another country's ID card and the digital signature given with it.
"This will certainly not result in a flood of Estonian investment in Portugal and vice versa, but the opportunities created by us have symbolic value for whole European Union," the minister said.
Barroso congratulated the Estonian and Portuguese justice ministries and pledged on behalf of the Commission to showcase the facility as the best example of co-operation between countries to develop economic life.
The Estonian-Portuguese initiative connects well with the Commission's ideas on giving a boost to European economy which call for wide utilisation of new technologies, the president said.
Lang and Costa will make a video presentation of the opportunities offered by both countries' enterprise portals and mutual recognition of digital signatures at the Justice and Home Affairs Council meeting on Friday.
The enterprise portal of Estonia's e-commercial register now allows one to establish a company and make changes in register entries also with a Belgian ID card and a Lithuanian mobile ID-authenticated digital signature. Finland is to join the list soon.


President of the Republic Received Credentials from Ambassadors of South Korea, Nigeria, Greece

27 November
- President Toomas Hendrik Ilves met with the Ambassadors of South Korea, Nigeria, and Greece, who presented their credentials to the head of state in Kadriorg. Credentials were presented by Ambassador Ho-Jin Lee of the Republic of Korea, who resides in Helsinki; Ambassador Ibrahim Pada Kasai of the Federal Republic of Nigeria, who resides in Kiev; and Ambassador Polydore Kokonas of the Hellenic Republic, who resides in Tallinn.



DOMESTIC NEWS

Prime Minister and Minister of the Interior Thanked Model Citizens

26 November
- Prime Minister Andrus Ansip and Minister of the Interior Jüri Pihl awarded Citizen's Day badges of honour to those people who have stood out with their social activities and noteworthy initiatives. In total, 17 people were given badges of honour, including promoters of local life and patriotic movements, deserving home researchers, leaders of several citizens' initiatives, teachers, and farmers.
“In a democratic country, all days should be citizen's day as it is the sum of the activities of the citizens that this country is made of,” said Prime Minister Ansip. According to him, being a citizen means helping out where something is needed. He cited the national cleaning day “Let's Do It 2008” as a great example of citizen activity.
Minister of the Interior Jüri Pihl expressed approval that citizen activity can be noticed in very different fields of life. “Citizens are the foundation of our country,” he stressed and added that in addition to everyday activity, the political activity and participation of citizens in elections are also very important for the country.
This year, Citizen's Day is being celebrated for the eleventh time. The motto of this year's Citizen's Day is: “The Republic of Estonia over ninety years”.


Celebration of the Anniversary Year of the Estonian Republic Ends with Thank-You Concert

28 November
- The celebrations of the 90th anniversary of the Republic of Estonia ended with a festive ceremony at the Estonia Concert Hall. President Toomas Hendrik Ilves thanked all of the people who have contributed to the success of the anniversary year across Estonia.
The people who have helped in organising the celebrations of the anniversary year of Estonia - from all counties, community centres, societies and associations, local governments, hobby and professional theatres - were invited to the thank-you concert. The people who assisted in the organisation of major national events such as the night-time song festival, the cleaning campaign “Let's Do It 2008” or the concert series in Estonian parishes, were invited as well.
The choir piece “Loits Eestile” (“Incantation for Estonia”) by Urmas Sisask was performed at the Estonia Concert Hall. It is one of the five new compositions that during the Estonian anniversary year have been dedicated, as musical presents, to the countries that greatly assisted in the gaining or restoration of the independence of Estonia.



DEFENCE NEWS

Minister of Defence Awards Defence Force Members Who Served in Afghanistan

2 December
- In the Peace Operations Centre in Paldiski, Minister of Defence Jaak Aaviksoo awarded medals of participation in international peace operations to 142 Defence Force members who recently returned from Afghanistan.
"We have gathered here in Paldiski today to express our thanks. Thank you for what you have done for the Republic of Estonia, our allies and the people of Afghanistan,” said the minister to the Defence Force members. “On the one hand, this is not much as there is still a lot to be done. But most definitely, this means a lot for you and for the Republic of Estonia."
Minister Aaviksoo confirmed that the contribution of the Defence Force members who served in Afghanistan has not passed unnoticed amongst both the local population in far-away Afghanistan nor among Estonia's partners and Estonia. Aaviksoo also admitted that, unfortunately, losses are an inevitable part of all military operations. “You understand this, and you have been able to accept it. At the same time, all those who have suffered from direct losses deserve our respect, support and long-term admiration. I have no doubt that you can offer all this to your fellow combatants,” the minister of defence said.
"I hope that what the state of Estonia has to offer is dignified enough. We have introduced the required changes and amendments to the Defence Forces Service Act and, hopefully, these will be soon enforced,” Defence Minister Aaviksoo added.
"Honoured combatants, thank you! Rest and enjoy the opportunities and freedoms offered by the Republic of Estonia. And please be aware that some of the freedoms have come about thanks to you,” the Minister of Defence said.
Medals of participation in international peace securing operations were awarded to 142 Defence Force members who served in Afghanistan from May to November of this year, in infantry company Estcoy-6, mortar platoon, national support element NSE-5, a military police close protection team CPT-5, and also officers and non-commissioned officers who served at Kabul international airfield and different ISAF headquarters.
56 Defence Force members who participated in their first international operation were awarded a medal - a brooch with the inscription “AFG 2008” and a black star. A brooch was bestowed on 75 Defence Force members who participated in their second or third mission, while the ten Defence Force members who participated in their fourth, fifth or sixth mission received a brooch and a silver star. One Defence Force member who has participated in more than six missions got a brooch and a golden star.
The Estonian Defence Forces have been participating in the operation in Afghanistan since 13 March 2003. There are currently approximately 150 members of the Defence Forces serving in Afghanistan, in the largest and most difficult international operation for Estonia. Those members include the infantry company ESTCOY 7, national support element NSE 6, cross service team CST at Kabul airfield, and a number of staff officers serving at different headquarters of the allied forces.


Training for Baltic Battalion to Be Completed on Time

28 November
- Training of the joint infantry battalion of the three Baltic countries is going as planned and the unit will be manned and trained by the established deadline, commander of the Estonian Defence Forces Lt. Gen. Ants Laaneots said.
Training, equipment and strategic transport of the joint Estonian-Latvian-Lithuanian battalion that will be part of the NATO Response Force NRF-14 in 2010 was the central topic at a meeting of the Baltic Military Committee, a body made up of the commanders of the Defence Forces of the three Baltic countries.
Laaneots said the project was proceeding according to plans.
"Control exercises of the battalion's sub-units and the battalion itself are planned for next year. I'm sure that BALTBAT will be manned, trained and equipped in NATO by the established deadline," Laaneots said, adding that arranging strategic transport for the battalion still requires work.
Lt. Gen. Laaneots, his Lithuanian counterpart Lt. Gen. Valdas Tutkus and Latvian counterpart Maj. Gen. Juris Maklakovs also discussed during their meeting in Parnu matters related to Baltic air policing and strategic transport, as well as development of the joint Baltic defence college BALTDEFCOL. The need to review and develop the curriculum at BALTDEFCOL was addressed.
In a joint statement, the Baltic Military Committee voiced recognition of the development of Baltic military co-operation and the importance of constant co-ordination of joint military projects.
Lt. Gen. Laaneots handed the powers of chairman of the Baltic Military Committee to Maj. Gen. Maklakovs.
The meeting of the Baltic Military Committee was followed by a meeting of Baltic defence ministers.
The common projects in defence co-operation for Estonia, Latvia and Lithuania are the joint infantry battalion BALTBAT, the joint air space monitoring system BALTNET, the joint mine countermeasures squadron BALTRON, and the joint defence college BALTDEFCOL.


Riho Terras New Permanent Undersecretary of Ministry of Defence

27 November
- The Government today approved the candidacy of Riho Terras for the position of a permanent undersecretary of the Ministry of Defence. Terras earlier served as the deputy chief of staff of the General Staff of the Defence Forces in the operations sphere.
Riho Terras started his career as a permanent undersecretary from 1 December, and his term of office will last for five years until 30 November 2013.
Riho Terras was born in 1967. He has served on different positions in the Defence Forces since 1991 - as a company and staff commander of the Kalev Single Infantry Battalion, the commander of the Single Guard Battalion, as a chief of the general staff of the Defence League, defence attaché to Germany and Poland, as the director of the analysis and planning department of the General Staff of the Defence Forces, deputy chief of staff of the NATO Training Mission in Iraq, and as the deputy chief of staff of the General Staff of the Defence Forces in the operations sphere. Mr. Riho Terras completed a senior staff officers' course at the Baltic Defence College and has a master's degree from Bundeswehr University in the degree programme of state and social studies.
Riho Terras resigned from the Defence Forces with the rank of Lieutenant Colonel.



ECONOMIC NEWS

Currency Rates in Kroons
(Bank of Estonia)


Estonian Companies' Q3 Revenues Consistent with Last Year's

1 December
- Sales revenues of Estonian enterprises in the third quarter of this year were practically unchanged from the same period of 2007, totalling 169.8 billion kroons (EUR 10.85 billion), which represents a year-on-year growth of just 1.6 percent, Statistics Estonia said.
Wholesale and retail trade enterprises and companies engaged in the maintenance and repair of motor vehicles and household appliances accounted for the biggest part, or 72.9 billion kroons of the revenue. The manufacturing sector contributed 33.7 billion kroons and the construction sector 16.4 billion kroons.
Compared to the third quarter of last year, sales increased in most activities.
The average number of gainfully employed persons was 459,489, an increase of 2,668 persons against the same period a year ago.


Baltika's November Sales up 12 Percent on Year

2 December
- The consolidated sales revenue of the Estonian garment manufacturing and retail group Baltika in November totaled 104.8 million kroons (EUR 6.7 mln), an increase of 12 percent compared to November 2007.
Retail sales grew by 15 percent and wholesale decreased by 23 percent year on year. Wholesale revenues have declined in line with projections, Baltika said.
The group's comparable store sales growth for November was 8 percent, including 36 percent in Russia and 34 percent in Ukraine.
November retail sales increased 35 percent in Central Europe, 32 percent in Eastern Europe and 6 percent in the Baltic region.
Baltika Group had 133 stores with a total sales area of 26,911 square meters at the end of November, with six stores opened and one closed during the month.
Four stores were opened in Panorama, the newest shopping and entertainment center in the Lithuanian capital. With 33 stores, Lithuania became Baltika's biggest market in terms of the number of stores.
In December, the company plans to open one store.
Cumulative eleven-month sales revenue amounted to 1.1 billion kroons, an improvement by 5 percent year on year. Retail sales totaled 968 million kroons (plus 10 percent) and wholesale 131 million kroons (minus 8 percent).


Cargo Throughput of Port of Tallinn Climbs 3 Percent on Year

2 December
- Estonia's state-owned Tallinna Sadam (Port of Tallinn) handled 2.24 million tonnes of goods in November, about 3 percent more than in the same month a year ago.
Freight volumes in the first 11 months of 2009 totaled 26.58 million tonnes, a 21 percent decrease year on year, figures provided by the company on Tuesday show.
Handling of roll-on, roll-off cargoes (tractors, buses, etc.) meanwhile inched up 0.4 percent to 3.3 million tonnes.
Bulk freight shrank by 62.8 percent to 2.7 million tonnes and mixed cargoes decreased by 23.9 percent to half a million tonnes. The decline in bulk cargoes mainly resulted from smaller volumes of coal, grain and fertilisers.
At 1.3 million tonnes, the amount of container goods slightly exceeded last year's level.
The number of passengers, at 6.7 million, showed a year-on-year growth of 12 percent. The port received 2,323 cargo ships and 6,247 passenger ships in the 11 months.




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