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Estonian Review: 5-11 November 2008
14.11.2008
FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS
FOREIGN NEWS
Paet: The EU Must Be Unified in its Relations with Russia
10 November - Foreign Minister Urmas Paet participated in a session of the European Union General Affairs and External Relations Council (GAERC). A joint session of the foreign and defence ministers also took place within the framework of the GAERC.
The European Union foreign ministers addressed preparations for the European Union-Russia summit and the further development of relations. The foreign ministers agreed that dialogue and achieving the relations outlined in the framework agreement between the EU and Russia are in everyone's best interests for accomplishing goals and protecting principles and interests. Negotiations do not in any way validate Russia's behaviour towards Georgia or reflect the values and principles of the EU, Paet stated, expressing the thoughts of the EU foreign ministers.
Foreign Minister Urmas Paet said that it is essential for the European Union to have a common understanding about future communication with Russia and how to proceed with partnership and co-operation agreement negotiations. The European Union must give Russia a clear message at the summit-that the attack on Georgia has left a deep mark on the trust necessary for an EU-Russia partnership agreement, and that all the points of the Russia-Georgia cease-fire agreement must be fulfilled, said Paet. He stated that Russia still is not fulfilling all of its responsibilities and therefore one cannot speak about the complete fulfilment of the cease-fire agreement. This position is shared by the declaration by the EU presidency, in which the EU foreign ministers once again expressed firm support for Georgia's territorial integrity, he added.
Paet thinks that it is not possible in this situation to quickly progress with many topics that require trust and relate to security. The Council of the European Union must continue the ongoing review of Europe-Russia relations and react, if necessary, Paet declared.
Foreign Minister Paet asserted that today's decisions are extremely significant for the nations in the European Union's neighbourhood. The negative experience with Georgia forces us to strengthen the Eastern Dimension of the European Neighbourhood Policy, said Paet. A stable EU neighbourhood and commonly respected standards are useful for both the EU's neighbours to the south as well as Russia, Paet clarified.
The European Union foreign ministers also discussed the situation in Iraq. The ministers agreed that although the human rights situation there is still alarming, the government has made progress in stabilising security and democratising the nation. According to Foreign Minister Urmas Paet, the significantly improved security situation allows for more focus to be placed onto the civilian construction of Iraq than previously.
In the joint session of foreign and defence ministers, the topics of discussion were the situations in Afghanistan and the Western Balkans. The Afghanistan discussion focused on the needs to co-operate in a more co-ordinated way. Co-operation operations require more intense political co-operation and consultations between the European Union and NATO, Paet noted. Foreign Minister Paet stated that the co-operation of international participants must guarantee that the 2009 elections in Afghanistan occur smoothly and on a democratic basis.
While talking about the political situation in Bosnia and Herzegovina, the basis for the conversation was Javier Solana and Olli Rehn's report EU's policy in Bosnia and Herzegovina: the way ahead. Foreign Minister Paet confirmed that Bosnia and Herzegovina's EU perspective is very important and depends upon developments in the country.
In talking about the European Security and Defence Policy (ESDP), the foreign policy leaders of the European Union discussed increasing both military and civilian capabilities. Foreign Minister Paet stated that security and defence policy have been significantly developed during France's presidency. The effectiveness of the European Security and Defence Policy and the strength of missions depend greatly on how the European Union's capability to respond to crisis situations is further developed, said Paet. The foreign ministers' council approved the conclusions regarding the ESDP, which give an overview of European Union operations, missions, future development of capabilities, security sector reform, and co-operation in the UN and NATO.
President Ilves Participated in Celebration of Poland's 90th Anniversary
11 November - President Toomas Hendrik Ilves and Evelin Ilves travelled to Warsaw at the invitation of Polish President Lech Kaczyński to participate in the formal celebration of Poland's 90th anniversary.
It is noteworthy that Estonia and Poland are both celebrating their 90th anniversaries, President Ilves said. Our fates have been as just as complicated and painful as the 20th century has been for Europe. However, Estonia and Poland are now together in the European Union and NATO as equal allies, and we are closer than ever before. Therefore, the 21st century has started hopefully for us both.
According to President Ilves, the very good relations between Estonia and Poland are characterised by mutual understanding and trust.
In Warsaw at a ceremony organised by the Estonian Embassy, the Estonian head of state met with writer Anne Applebaum, to whom he delivered the Order of the Cross of Terra Mariana Third Class that was bestowed on her last February.
Cyber Defence Centre Given NATO Accreditation
10 November - The North-Atlantic Council, the highest political leading body of NATO, has endorsed the accreditation of the NATO co-operative Centre of Excellence in Cyber Defence in Tallinn, and gave the centre the status of an international military organisation.
"I am very pleased and honoured to inform you that Estonia is now hosting in its territory a military organisation accredited by NATO," Defence Forces commander Lt. Gen. Ants Laaneots said.
Johannes Kert, chairman of the steering committee of the centre, said that he had long waited for that moment. Maj. Gen. Koen Gijbers, representative of the Allied Command Transformation, said that the cyber defence centre was a good example of how it is not necessary to be a major power in order to add value to NATO.
Lt. Col. Ilmar Tamm, commander of the Cyber Defence Centre, said that Turkey and the USA would join the centre in the near future. Several other countries, including the non-NATO countries Ukraine, Georgia, Finland and Sweden, have shown interest in the centre as well.
Prime Minister Andrus Ansip Met With Polish Prime Minister
5 November - At the meeting of the Estonian and Polish prime ministers, the field of energy and the issues related to the Climate and Energy Package were mainly discussed. The Prime Ministers noted that Estonia and Poland have several similar significant concerns in the field of energy that must be resolved.
Prime Minister Andrus Ansip stressed that it is important to follow the interests of the entire European Union, and it is in the interest of the Union to have the package approved already at the end of this year.
For Estonia, the Climate and Energy Package and energy security are inseparably related. The adoption of the package cannot impair our energy security, said Prime Minister Ansip, according to whom it is especially important for us that third countries would also take on obligations similar to those of the European Union in limiting the emission of greenhouse gases. If third countries do not do that, there will be the danger of uneven competition, said Ansip. According to the prime minister, one of the solutions is to involve the electricity imported from third countries into the Emissions Trading System.
At the meeting, other measures of energy security were also discussed, especially the establishment of energy connections in the Baltic Sea region. I am glad that all countries of the region have the political will to quickly proceed with this topic. This contributes to the establishment of a true domestic energy market, Ansip added.
The prime ministers noted that Estonia and Poland are connected by a similar past experience, but also a centuries-long common history. The relations between Estonia and Poland were especially close during the two World Wars, when political, economic and defence-related co-operation between Estonia and Poland was very intense. Academic relations between Estonia and Poland had been close earlier as well. At the end of the 19th century, there were up to 2000 Poles studying at Tartu University. What is worth pointing out separately is the effect of the Polish trade union movement Solidarnosc on Estonia. This was a message of freedom for us and gave us new courage and a will to act, said Ansip.
Today, Estonia and Poland are democratic and stable countries that are members of NATO, the largest defence organisation in the world, and the European Union, the most successful political-economic union in the world.
Soon after joining NATO in 1999, Poland started supporting the so-called open doors policy and the acceptance of Estonia into NATO. Due to decisive assistance from Poland, we are allies today. Both Estonia and Poland actively contribute to the NATO ISAF mission in Afghanistan. Poland has helped in safeguarding our airspace.
Estonia Helps Sudanese Refugees with 700,000 Kroons
7 November - The Foreign Ministry is supporting refugees and internally displaced persons in Southern Sudan with 700,000 kroons (44,700 EUR) through the United Nations High Commissioner for Refugees (UNHCR).
The UN has classified the situation in Sudan as one of the great humanitarian disasters in the world. According to Foreign Minister Paet, the situation reigning in Sudan and Chad is extremely alarming.
The civil war going on in Sudan has caused a wide-spread humanitarian crisis, which has taken many victims from among the civilian population, said Foreign Minister Paet. The foreign minister stated that the humanitarian situation is constantly worsening, and only Sudan's neighbour Chad has accepted a few hundred thousand refugees. This number is growing with each day.
Almost 2 million people have died as a result of the decades-long civil war in Sudan. A total of 4.6 million people have left their homes during the war, and more than 2 million of them are still internally displaced persons today. Conflicts in Southern Sudan and in Darfur in the western part of the country have forced internally displaced persons to move to the eastern parts of the country. Over half a million refugees have fled to neighbouring nations, mainly Egypt, Ethiopia, Uganda, Kenya, and Chad. In addition, over 200,000 refugees have also come into Sudan from the neighbouring countries of Eritrea, Chad, Ethiopia, Congo, and other places.
In a 2008 appeal, the UNCHR estimated that the sum needed to help the refugees and internally displaced persons in Southern Sudan was 122 million USD. The support of the UN High Commissioner for Refugees includes first and foremost the means to satisfy basic needs, including food, transport and logistics, household goods, shelter, drinking water, and the creation of sanitary conditions. The UNCHR's appeal set a goal to help 160,000 refugees return to their homes during the year 2008 and 2009 and support the restoration of normal life in Southern Sudan.
Estonia has been supporting efforts to improve the humanitarian situation in Sudan since 2004.
The project is being financed from the Foreign Ministry's budget for development and humanitarian aid. The Estonian Foreign Ministry's budget for development and humanitarian aid in 2008 is 60 million kroons.
UN Secretary General Names Estonian Representative to UN Central Emergency Response Fund Council
5 November - UN Secretary General Ban Ki-Moon selected the new composition of the 16-member council of the UN Central Emergency Response Force (CERF) on 31 October, 2008. Re-selected for the council was Riigikogu member and former Rescue Board director Mati Raidma, who has been on the council since the creation of the fund.
The task of the CERF council is to give the UN Secretary General and the UN catastrophe aid co-ordinators guidelines for the effective usage of the fund's contributions. The council has 12 members and 4 substitute members. Including Raidma, there are 6 members from the previous composition in the new council, in order to ensure the institutional consistency of the council. The members of the council do not represent their state or government, but are there with individual expert status.
Foreign Minister Urmas Paet said that the Estonian representative's ongoing term in the CERF council is a testament to the high level of Estonian experts participating in international rescue work. We have been able to participate in concrete rescue operation as well as offer experts for the planning of solutions to emergency situations, emphasised Paet, focusing on the importance of planning in reacting to crises.
The CERF, which began working in March 2006, is a crisis fund managed by the UN Office for the Co-ordination of Humanitarian Affairs. When a crisis arises, UN sub-organisations, programmes and agencies that deal with humanitarian crises receive funds for immediate action.
The CERF primarily allocates money to crisi areas after natural disasters, as well as to cover urgent needs after neglected or forgotten crises. To date, 65 nations have received aid from the CERF. Estonia has supported the fund with financial contributions since its creation.
Five Crew Members on Ship Hijacked by Somali Pirates Are Connected to Estonia
10 November - Five of the 13 crew members of the Danish-managed cargo ship that was hijacked by pirates off the Somali coast Friday afternoon are linked with Estonia.
Representatives from the Estonian Foreign Ministry met with representatives of the ship's operator Clipper Group in Copenhagen to hear an overview of the situation and of further steps to be taken.
The shipping company has confirmed that there are 13 people on board the ship held by pirates in the Gulf of Aden, one of whom is a citizen of Georgia and one is holder of an Estonian alien's passport. The rest of the crew members are Russian citizens, but four of them have Estonian residence permits.
"The homes of five members of the ship's crew are in Estonia, and that is what determines the planning of our activity. On the part of the Foreign Ministry Estonia's wish is to act as quickly as possible so that the families of those people would be urgently informed about all developments," Foreign Minister Urmas Paet said.
The Foreign Ministry is providing consular assistance to the holder of alien's passport and his family, whereas to the citizens of the Russian Federation and their family members living in Estonia the Foreign Ministry is providing consular support in collaboration with the Foreign Ministry of the Russian Federation and the embassy of the Russian Federation in Tallinn.
The company said that it was in contact with the relatives of all the crew members and was keeping them informed about the situation.
The company reiterated its earlier information that the crew members were unhurt, but that there was no further information about the situation on board as well as of the pirates' demands.
Estonia has raised the issue of rampant piracy in Somalia's coastal waters both in the European Union and NATO.
The Bahamas-flagged ship, CEC Future, is operated by the Danish company Clipper Group. There have been no reports of a ransom demand.
The 7,300 dwt universal cargo carrier built in 1994 was en route from the Mediterranean to Malaysia with a full cargo of steel.
DOMESTIC NEWS
Digging in Tallinn's Freedom Square Reveals 5,000-year-old Settlement
7 November - Excavations carried out as part of the reconstruction of the Vabaduse (Freedom) Square in Tallinn have revealed signs of human activity dating back 5,000 years.
On the basis of the finds, it may be assumed that 5,000 years ago the shoreline of the sea ran through the spot where the front entrance stairs of the city government building lie today.
The excavations show the lower city as having a several thousand year's longer history than was previously thought, Vice Mayor Taavi Aas said.
It is believed that a seasonal settlement of fishers and seal hunters lay on the sea coast near the present-day city government building 5,000 years ago.
"This Stone Age settlement site marks the start of the history of Tallinn, even though it took thousands of years before the fishing site evolved as a town," the vice mayor said.
"Stone Age finds are scarce in north-western Estonia. Something similar has been earlier discovered only in excavations near the estuary of Jagala River," Guido Toos, the archaeologist in charge of the excavations, said.
Toos said the cultural layer underneath Vabaduse Square was in places up to 50 centimetres thick, and time and patience were needed to fully examine it.
The items found, as well as visual material about the Stone Age settlement and the excavations, will be displayed in the atrium of the pedestrian area of the renovated square.
Trust Rating of Estonian Police Remains High
11 November - In October, 79 percent of Estonian residents interviewed trusted the police, putting the rating as high as it was in September.
The trust rating of the police was the highest in January of this year, when 84 percent of respondents in a Turu-uuringud AS poll trusted the police. In February the trust rating of the police was 78 percent, in March 77 percent, in April and May 81 and in June 70 percent.
Trust in the Estonian police has been high for years. Last year the average trust in the police was 75 percent, in 2006 72 percent, in 2005 71 percent and in 2004 70 percent.
Since last year, the trust rating of the police has not fallen under 72 percent in any month of the year.
Tallinn's Russian Cultural Centre to Reopen After Renovations
7 November - The Russian Cultural Centre in the Estonian capital Tallinn is to be reopened in a ceremony after nearly one and a half years of renovation at a cost of more than 58 million kroons (EUR 3.7 mln).
The building's 1,000-seat great hall is the largest such hall in Tallinn, the city government said.
Restoration of the ceiling of the great hall and the installation of an acoustic panel were some of the most large-scale tasks undertaken as part of the project.
The Tallinn city government signed an agreement on the reconstruction of the building with the construction company Tarrest Ehitus last year. Under the agreement, the company performed works for 9.6 million kroons last year and for 49 million kroons in 2008.
The city wishes to complete the full renovation of the building in the near future. Still to be overhauled are some auxiliary premises, the gallery on the third floor and a part of the exterior.
The Russian Cultural Centre was created as a municipal institution in 2001.
The building that was erected as a meeting place for Soviet naval officers in 1954 was declared an architectural monument in 1997.
90th Anniversary of Estonian Ministry of Foreign Affairs
Groups of Estonian high school students visited the Foreign Ministry on 11 November, the day that marked the 90th anniversary of the Ministry of Foreign Affairs. Students toured parts of the building and met Foreign Minister Urmas Paet.
DEFENCE NEWS
Aaviksoo: Afghanistan's Security Situation Has Improved
5 November - The general security situation in Afghanistan has improved lately, the Estonian defence minister finds.
Minister Jaak Aaviksoo, on a four-day visit to Afghanistan, met with the chief of the International Security Assistance Force (ISAF), Gen. David D. McKiernan, the head of the UN mission UNAMA, Kai Eide, and the British ambassador to Kabul, Sherard Cowper-Coles.
Aaviksoo said that the overall evaluation of the situation in Afghanistan is more positive and the view on developments more confident than it was a year ago. "Despite the increased number of clashes, the general situation in Afghanistan has improved over the past year," he said.
The minister observed that more than 60 percent of the anti-insurgent operations are accomplished by the Afghan force and that more than half of the local population trusts the Afghan police as the primary provider of security. "These figures show a positive development," he underlined.
Aaviksoo named the presidential election slated for next year as one of two major challenges. Improvement of the security situation is a prerequisite for raising the credibility of the presidency and the international community has to make an effort towards this end, he said.
The second challenge named by the minister was co-operation with Pakistan to tighten control over the southern part of Afghanistan and the border between the two countries. It is promising that the co-operation of the Afghan and Pakistani governments has improved, he said.
The call to western nations to place more trust in Afghanistan's armed forces and contribute to their training was at the forefront in the meetings, the minister said. According to Aaviksoo, only slightly more than 40 out of the necessary 100 training centres have been established. Contributing to the development of training centres is beyond a state the size of Estonia, he added.
The minister also met with his colleague Abdul Rahim Wardak and US Ambassador William B. Wood, and visited the Kabul training centre of the Afghan forces.
Afghanistan is the largest foreign mission of the Estonian Defence Forces, with nearly 140 military deployed in the country.
An infantry company together with a mortar unit serving in the southern Helmand province is the largest Estonian unit in Afghanistan. The mission contingent further includes an apron service team, a close protection unit, staff officers and a logistics support element.
Estonian military have been participating in the NATO-led operation since 2003.
EU Defence Ministers Stress Need to Improve Military Capabilities
10 November - Minister of Defence Jaak Aaviksoo participated in a session of the Steering Committee of the European Defence Agency and the official meeting of the European Union defence ministers, where the discussion focused on the development of Europe's military capabilities.
Alternatives for improving the efficiency of the work of the European Defence Agency, the European Union military operations in Chad and preparations for the naval operations to Somalia were also discussed. The young officers' Erasmus-inspired exchange programme initiative was also introduced at the meeting.
"At this meeting of the European Union defence ministers, the need to enhance military capabilities was, above all, highlighted - we must be able to respond timely and with adequate measures in the case of a crisis. A strong Europe serves the interests of us all, Aaviksoo said.
Several capability development projects, including Estonia's participation in the European Defence Agency mine clearance project, were approved within the framework of military capabilities improvement. The importance of the implementation of the helicopter initiative, launched by the United Kingdom and France, was also stressed. Estonia also takes part in the aforementioned initiative.
"Mine clearance is the main task of our Navy; therefore, we can see great added value in the respective project of the European Defence Agency. Consequently, Estonia's participation in the helicopter initiative serves practical needs - our Air Force is highly professional, though we have had limited opportunities for field practice, Aaviksoo said.
At the meeting, the defence ministers also discussed the establishment of the European Union naval surveillance network, the deployment of multinational military units and issues related to the co-ordination of civilian evacuations.
Both the political and security situation of the Western Balkans and Afghanistan were discussed at the joint meeting of the defence and foreign affairs ministers within the framework of the general and foreign affairs council; the future of the Althea' European Union military operation in Bosnia-Herzegovina was also discussed.
"Today, Afghanistan represents huge challenges for itself and for the international public in general. The European Union could and should, above all, contribute much more to the reconstruction of the Afghan police forces. Without a reliable police force, it would be also difficult to ensure the security of the upcoming election of the president in Afghanistan, the minister of defence said.
Minister of Defence Meets with Troops in Afghanistan
6 November - Defence Minister Jaak Aaviksoo met with members of the Estonian contingent serving in Afghanistan, giving them knives with the emblem of the Defence Ministry as a gift.
Aaviksoo looked at the conditions of service and everyday life of the Estonian personnel at the Now Zad advanced base and the Camp Bastion base.
At Now Zad, where the infantry company ESTCOY-6, the Estonian mortar unit and most of the support personnel are deployed, Aaviksoo said that the reputation of Estonian personnel among partners has made the small country ten times bigger. "The contribution of our contingent is many times bigger than indicated by figures, as we are present in an area where each man counts for three," he said.
It is for this reason that the Estonian infantry company is engaged in one of the areas of greatest responsibility in Helmand province, he said.
The minister said that there is still a long journey to be completed for the Afghans and allies alike before the situation in Afghanistan is finally stabilised.
Aaviksoo stated that the Estonian company, together with the Americans, is able to keep the situation under control in the Now Zad area but there are not enough troops for progress to be made.
"There is a de facto cease-fire in the region, but no progress," he said. "It can be said that more insurgents have come to Helmand province from other regions of Afghanistan," said the minister, adding that southern Afghanistan has been left aside of the overall positive trend.
The plan is for the presence of both the allies as well as the Afghan army to be increased in southern Afghanistan, including in Helmand province, in the near future. This is expected to lead to an improvement in the situation.
Aaviksoo also visited the headquarters of the British battle group of Helmand in Lashkar Gah, meeting with the Estonian medical expert working in the provincial reconstruction team, as well as met with Estonians serving at the Camp Bastion base.
Aaviksoo Discusses Defence Reforms with Ukrainian Counterpart
11 November - Minister of Defence Jaak Aaviksoo met with his Ukrainian counterpart Yuri Yekhanurov on Bornholm Island, Denmark, to discuss the reforms of the Ukrainian defence sector.
According to Minister Aaviksoo, Estonia's experiences have shown that consistency and transparency contribute to the creation of trust in relations with allies. Reforms are necessary; however, reform plans must be realistic and have full budgetary cover, the minister of defence said. Defence-related co-operation between Estonia and Ukraine was also discussed at the meeting.
The Ministry of Defence of the Republic of Estonia mostly supports defence-related reforms in Ukraine, by providing training for Ukrainian officials and officers at the Baltic Defence College as well as advising Ukraine on legal, defence planning, and public affairs issues. Ukraine continues to be one of Estonia's high priority target countries of defence-related outreach, Aaviksoo said.
The meeting between Minister Aaviksoo and Minister Yekhanurov took place on Bornholm Island, Denmark, within the annual meeting of the defence ministers of the Baltic and Nordic states.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
Ansip Met with George Soros
8 November - Prime Minister Andrus Ansip met with George Soros and discussed the impact of the financial crisis on the global economy and the situation that has developed in Estonia. Ansip stressed that accession to the Euro zone is one of Estonia's most important goals in the near future. The prime minister also thanked the philanthropist for the activities of the Open Estonia Foundation.
While speaking about the current state of the Estonian economy, Andrus Ansip acknowledged that thanks to the government's conservative monetary policy, the fiscal policy situation of the country is solid. Over the last few years, we have reduced the debt of the governmental sector to 3.5 % of the GDP, which is the lowest in the European Union. During the period of economic growth, reserves currently amounting to 10 % of the GDP were collected, the prime minister said, while referring to the country's most important monetary policy achievements.
George Soros welcomed the development of Estonia and its society and was happy that the global financial crisis had not started to have a serious impact on the open economic environment of Estonia.
In 1990, the charitable Open Estonian Foundation was founded with Soros' support, and the foundation is included in the network of Open Society Fund, also founded by Soros. Over the years, the Open Estonian Foundation has allocated various grants in the amount of nearly 400 million kroons.
Baltika to Open Four New Stores in Vilnius
6 November - The Estonian garment retail group opened Panorama Monton, Mosaic, Baltman and Ivo Nikkolo stores in a new shopping centre in Vilnius. The total floor area of the stores is nearly 1,000 square meters.
Maire Milder, director of Baltika's retail trade division, said that with 33 retail outlets, Lithuania was the biggest market for Baltika. In 1993, Lithuania became the first foreign market for Baltika when it entered the country with its Baltman trademark.
"Expansion by our whole brand portfolio is a positive sign of the growing awareness of the company's brands in Lithuania," Milder said.
Baltika Grupp, a listed company, specialises in the creation of garment collections, their production, and retail trade, operating with Monton, Mosaic, Baltman and Ivo Nikkolo retail chains in seven countries. The company has a total of 132 stores, and in addition to Estonia, Lithuania, Ukraine and Russia, it also operates in Latvia, Poland, and the Czech Republic.
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