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Estonian Review: 22-28 October 2008
31.10.2008
FOREIGN NEWS
DEFENCE NEWS
ECONOMIC NEWS
FOREIGN NEWS
Estonia Donating 17 Million Kroons to the International Reconstruction of Georgia
22 October - At the Georgia donors' conference in Brussels, which was organised by the European Commission and the World Bank, Estonian Foreign Minister Urmas Paet announced that Estonia is prepared to support the reconstruction of Georgia in 2008 and 2009 with a total sum of 17 million kroons (1.08 million EUR).
Paet emphasised that the donors' conference is an important step in supporting the overall socio-economic development in Georgia. Helping to revive the economy is of vital importance to Georgia's recovery from the conflict, and a prerequisite for achieving stability in the region, said Foreign Minister Paet. The international community must strengthen its role in the region and be dedicated until the post-conflict situation in Georgia has resolved in a way that ensures the development of the nation, a democratic stance, and the welfare of the citizens, Paet emphasised.
The foreign minister stated that the European Union must take advantage of the current situation and strengthen ties with Georgia and other nations to our east. Now is the time to overcome our fears and send a clear message to these countries that with hard work and the implementation of reforms, they are welcome to become a part of our system of common European values, stated Paet.
Estonia has consistently supported the democratic development of Georgia and the structuring of its state institutions. So far, Estonia has already donated 15.5 thousand tonnes of aid for alleviating the aftermath of the conflict in Georgia. Another aid shipment is currently being prepared that is intended to help children in Georgia. Estonia has also sent four crisis psychologists, two IT specialists, and a mine-clearing unit to the country. Estonia has given a million kroons through UNICEF to help children that suffered in the armed conflict.
Estonian President Met with German Head of State
23 October - At the meeting between President Toomas Hendrik Ilves and German President Horst Köhler in Germany, the discussions focused on the problems of international relations, security, and the general financial crisis, as well as on bilateral relations.
Germany is a very important partner for Estonia-equally important are the historical and cultural ties that unite us in our co-operation in the European Union and NATO, which is based on solidarity and common values, President Ilves said.
Speaking about security guarantees, Presidents Ilves and Köhler agreed that in the 21st century, NATO means unconditional protection for the countries that are members the organisation, as well as being a source of motivation and encouragement for the alliance's neighbouring countries to carry out democratic reforms, which, if successful, would expand the security zone in Europe.
NATO does not have the right to abandon or tire of Afghanistan, President Ilves said, speaking about the alliance's largest operation. We can be successful if we can garner more allies among the local population, which would increase security in this ever turbulent country. We must also strengthen the ISAF operation, which would make our activities more vigorous and believable, and, if we succeed, would demonstrate that NATO means business.
Speaking about NATO's possible enlargement, President Ilves supported the open door policy, stressing that the acceptance of new members is an independent decision of the alliance, which third countries have no right to veto. Today, NATO is not against any country, it is in favour of common values and principles, it is for democracy, Ilves stated.
Heads of State Ilves and Köhler also spoke about energy policy, including energy security, where business interests cannot be allowed to smother our common values. Energy connections are not just business projects, but are primarily a means of guaranteeing energy security and the functioning of the internal market, President Ilves said.
Therefore, an opportunity must be found for the European Union to finance the creation of energy connections that are significant from a security standpoint. The creation and development of a more cohesive internal market and international energy connections is in the interests of all European Union states.
Presidents Ilves and Köhler spoke at length about global financial crisis and its effects. Both recognised that it must be, and is, in the interests of the European Union states to restore the trust of the banks and citizens and a general balance in the world's financial market.
On the global scale, there are currently at least two problems; in addition to the stabilisation of the financial markets, it is important to prevent the financial problems growing into a general economic crisis, President Ilves said. This requires co-ordinated action at the European Union level and also on the more general international plane.
So far, Estonia has been relatively untouched by the financial crisis, thanks largely to the integration of Estonian banking with the financial sector of the Nordic countries, which has coped well in the current financial crisis.
President Ilves invited Federal President Köhler to make a state visit to Estonia.
Estonia Ranks Among Countries with Most Press Freedom
22 October - The Paris-based organisation Reporters sans Frontiers (Reporters Without Borders) published their world freedom of the press report for the seventh year running, in which Estonia ranks 4th-6th among 173 countries.
In the report, Iceland, Luxembourg and Norway are in the 1st to 3rd place, with Estonia, Finland and Ireland ranking 4th-6th. Compared with last year's RSF report, Estonia has fallen one place -- it was listed 3rd-4th last year, sharing the ranking with Slovakia.
Belgium, Latvia, New Zealand, Slovakia, Sweden and Switzerland are 7th-12th in the list. Other than New Zealand and Canada, the top 20 positions are held by European countries.
The United States is in the 36th-41st place together with Bosnia and Herzegovina, Cabo Verde, the Republic of South Africa, Spain and Taiwan. Russia ranked 141st.
According to the RWB list, the situation of freedom of the press is the worst in Eritrea, North Korea, Turkmenistan, Myanmar, and Cuba.
The index reflects the degree of freedom that journalists and news organisations enjoy in each country, and the efforts made by the authorities to respect and ensure respect for this freedom. Reporters Without Borders prepared a questionnaire with 50 criteria that assess the state of press freedom in each country. It includes every kind of violation directly affecting journalists and also the degree of impunity enjoyed by those responsible for these press freedom violations. Points were given in consideration of the various criteria. The fewer points a country was given, the better the situation of freedom of the press in that country.
The countries ranking first in the list had 1.5 points, while 2 points were given to Estonia, Finland and Ireland. The United States was given 8 points and Russia 47.5 points.
The New York-based Freedom House also publishes a world freedom of the press list every spring. In that list, Estonia ranked 16th-20th.
Estonia to be Member of UN Economic and Social Council
22 October - Estonia was chosen to be a member of the UN Economic and Social Council (ECOSOC) for the first time at UN headquarters in New York. Estonia's membership in ECOSOC will begin on 1 January 2009 and last for three years, until 31 December 2011.
The Economic and Social Council addresses many issues that are important to Estonia, such as development co-operation, human rights, and humanitarian issues.
Foreign Minister Urmas Paet stated that Estonia can focus on humanitarian topics in ECOSOC, maintaining and enhancing our humanitarian aid reputation. Our membership will also give Estonia a chance to increase its visibility in the international arena, intensify relations with developing countries, and continue being actively involved in advancing equal rights and the situation of women through UN development activities, said the foreign minister.
The Economic and Social Council is the principal organ in the UN dealing with economic and social issues. ECOSOC is responsible for advancing economic development, human rights protection, and international co-operation in various social fields and to co-ordinate the activities of UN special agencies, programmes, and funds. The Council has the power to make or initiate studies, make recommendations, prepare conventions, and organise international conferences. ECOSOC's 54 member states are chosen by the UN General Assembly.
Estonia Looking Forward to Croatia Joining EU and NATO
24 October - At Foreign Minister Urmas Paet's meeting with Croatian Foreign Minister Gordan Jandroković, who was in Estonia for a visit, the primary focus was on Croatia's efforts towards joining the EU and NATO.
Foreign Minister Paet confirmed Estonia's position that European Union enlargement should not be hindered by waiting for developments regarding the Treaty of Lisbon. Estonia still supports the expansion of the European Union and European values, said Paet in his conversation with the Croatian foreign minister. Croatia has made significant progress towards acceding to the EU and NATO. I hope that Croatia will successfully complete its European Union negotiations next year already, Paet said, expressing positive expectations prior to the progress reports to be made at the European Commission in November.
Urmas Paet also expressed his satisfaction about Croatia's impending accession to NATO. Estonia's government and Parliament have started the process for approving Croatia and Albania's NATO accession agreements. We hope that we may complete the process before the end of this year, said Paet, recognising the notable contributions that Croatia has already made to NATO operations. Hopefully Croatia and Albania will be able to join NATO before the next NATO summit, said Paet.
Both Foreign Minister Paet and Croatian Foreign Minister Jandroković shared the opinion that the time to end the OSCE mission in Croatia is in the near future. Paet also expressed his regret over the recent incident that caused the death of a Croatian journalist and affirmed Estonia's support of Croatia's government in the fight against crime.
Croatian Foreign Minister Jandroković also met with President Toomas Hendrik Ilves, who similarly expressed Estonia's support for Serbia's integration with the European Union. He also stated that he considered Bosnia and Herzegovina's European Union prospects to be very important; however, they depend primarily on the dedication and follow-up of the country itself.
Speaking about relations between Estonia and Croatia, President Ilves stressed that they are developing vigorously and a contribution should be made to economic co-operation, in which tourism is developing into an area with increasing common interest. The interest of Estonian investors in Croatia has also increased, especially in the areas of real estate, the hotel business, energy and information technology.
Newly Created Northern Dimension Transport Partnership Addresses EU-Russia Connections
28 October - Foreign Minister Urmas Paet participated in a meeting of the Northern Dimension foreign ministers in St. Petersburg.
The European Union, Norwegian, Icelandic, and Russian foreign ministers decided to create a new transport and logistics partnership within the framework of the Northern Dimension, in addition to the existing environmental and social partnerships.
Estonian Foreign Minister Urmas Paet stated that the newly created transport and logistics partnership could help to improve transport infrastructure and overcome current problems. Estonia considers a solution to EU-Russia border queues and the building of a new bridge in Narva to be important issues, said Foreign Minister Paet. According to Foreign Minister Paet, the transport partnership is also important for the better utilisation of EU-Russia trade potential.
The two partnerships that have been established so far-environmental and social partnerships-are good examples of the output from EU regional politics, and they have given clear results. Foreign Minister Paet said that Estonia has benefited from the environmental partnership. The updating of St. Petersburg's waste-water disposal system, which was carried out within the framework of Northern Dimension projects, has in turn improved the situation of the Baltic Sea, said the Estonian foreign minister.
In the case of the social partnership, the Estonian foreign minister states that it is important to co-operate in the fight against AIDS and HIV. We also plan to begin a cultural partnership in the near future, where emphasis will be placed on cultural co-operation between the Baltic Sea nations and the north-western parts of Russia, said Urmas Paet.
The Northern Dimension is a project-based EU foreign policy structure for co-operation with Russia, Iceland, and Norway.
Estonia Supports Opening EU Accession Negotiations with Macedonia
28 October - At a meeting with Ivica Bocevski, Macedonian Deputy Prime Minister for European Affairs, Prime Minister Andrus Ansip confirmed that Estonia supports the opening of accession negotiations between Macedonia and the European Union as soon as the country is ready, and expressed his hope that this will be in the near future.
It is all in your own hands, as homework is the most important thing, Prime Minister Ansip told the deputy prime minister of Macedonia, adding that, if Macedonia wishes, Estonia is prepared to share its experience of joining the European Union. According to the prime minister, Estonia supports a strong European Union, which means that all countries wishing to join must fulfil the established requirements for doing so.
In the last progress report of the European Commission, it was noted that Macedonia has made remarkable progress in fulfilling the required economic criteria. Macedonia has also been praised for progress in the areas of energy, fiscal policy and statistics. The country was formally recognised by the EU as a potential accession state in December 2005.
During his visit to Estonia, Bocevski also met with Minister of Social Affairs Maret Maripuu and Minister of Finance Ivari Padar. In addition, the deputy prime minister met with members of the Riigikogu, Foreign Ministry Undersecretary for European Union Affairs Kaja Tael, the dead of the European Union Secretariat Juhan Lepassaar, Ministry for Economic Affairs and Communications Undersecretary for Energy Issues Einari Kisel, and representatives of Enterprise Estonia.
Estonian Citizens Do Not Need Visa to Travel to Australia
28 October - Beginning on 27 October, Estonian citizens can travel to Australia for business or tourism without a visa.
Foreign Minister Urmas Paet stated that Australia is certainly a travel destination that Estonians are interested in, and visa freedom will simplify travelling to the country. Replacing the visa requirement with electronic registration prior to entering Australia will simplify travel considerably, and will certainly benefit economic contacts between the two countries, said Foreign Minister Paet.
It is possible to enter Australia multiple times during a 12-month period without a visa. The length of each stay can be up to three months.
In order to travel visa-free to Australia, European Union citizens must register themselves in the electronic travel system eVisitors Service. It is recommended to register at least two weeks prior to travelling.
Estonia to Sign Treaty with Russia for Aid in Emergency Situations
22 October - The Estonian government will discuss the bill for an agreement to be signed with Russia regarding co-operation between the two countries in case of emergency situations.
According to the cover letter of the bill, signing a co-operation agreement for taking appropriate actions in case of an emergency is absolutely necessary in order to ensure that urgent and effective foreign assistance will be available for emergency situations in Estonia and for Estonia to have the opportunity to help neighbouring countries that have been hit by an emergency.
Estonia has previously signed such agreements with Latvia, Sweden, and Finland, but there is still no such agreement with Russia.
Interior Minister Jüri Pihl will sign the agreement on behalf of Estonia.
Estonian Residents Support Accession of Finland, Georgia to NATO
23 October - Estonian residents are overwhelmingly in favour of Finland, Sweden, Georgia, and Ukraine becoming part of NATO, according to a poll commissioned by the Defence Ministry.
Most residents of Estonia see further enlargement of NATO as positive, and more than half the residents support enlargement of NATO to Finland, Sweden, Georgia, and Ukraine.
But the pollsters point out that there are more supporters of accession of the developed Nordic countries of Finland and Sweden than of the post-Soviet Ukraine and Georgia.
In case of both Finland and Sweden 36 percent were fully and 33 percent with reservations in favour of their accession. Seven percent of Estonian residents voted against Finland's and 8 percent against Sweden's accession.
Accession of Georgia and Ukraine was fully supported by 24 percent of respondents with 34 further percent supporting the accession of Ukraine with reservations and 32 percent Georgia's accession with reservations.
Twelve percent of the respondents (plus 11 percent with reservations) were against the accession of Ukraine; in Georgia's case the respective percentages were 15 and 9.
The poll was based on interviews with 1,000 residents of Estonia aged 15-74 in the period from 19 August to 7 September.
DEFENCE NEWS
President Ilves Met with Members of Defence Forces Leaving for Afghanistan
23 October - President Toomas Hendrik Ilves met with and delivered some important messages to the members of the ESTCOY-7 Infantry Company leaving for Afghanistan and their family members.
In Estonia, we have always believed that fulfilling our allied commitments is the best guarantee that our allies will fulfil their commitments to us, when we need help, the Head of State said. In the current situation, when we know how important NATO, and the support of our NATO allies, is to our national defence, your participation in the NATO mission in Afghanistan is even more important, shoulder-to-shoulder with the officers, non-commissioned officers, and soldiers of our partners.
President Ilves acknowledged the bravery and valour of the members of the Defence Forces that have served on dangerous foreign missions in Afghanistan and Iraq.
Speaking of foreign missions more broadly, he said, We need socially mature and intelligent soldiers. This also means understanding and respecting the customs of the local populations. Without the support of the local population, we will not succeed in Afghanistan. This support must be created, cultivated and maintained. After all, NATO is in Afghanistan in order to make this country safer and to provide more security for the surrounding world, as well as for the Afghans themselves.
The head of state also spoke about the state's support for the members of the Defence Forces on foreign missions and their families, recalling that draft legislation that originated in the Ministry of Defence and has already arrived in the Riigikogu should increase the social guarantees for soldiers who are wounded on foreign missions and for the families of those who are killed on missions.
It is all essential in order for the state to fulfil its moral obligation to the men and women that this same state sends on dangerous foreign missions on behalf of itself and its allies. The state must be caring toward the members of the Defence Forces serving on foreign missions, Ilves firmly stated.
The Head of State also addressed the families of the soldier serving on foreign missions, saying, The strength of every unit is equivalent to the strength of the soldiers' families. I appreciate that this is not an easy task for your families and friends. Moreover, I am sure that the members of the Defence Forces really need your support, faith and willingness to wait, the Head of State said.
President Ilves addressed the soldiers, saying that they should trust their superiors, and he addressed the officers, saying that they should be decisive, inventive, smart, mature, and fair.
Keep up your team spirit. Protect each other. The daily battle cry of Go! I'll cover you!' should guide your thoughts and actions the entire time that you are serving in Afghanistan, the head of state said, wishing those leaving for Afghanistan strength and a soldier's luck.
Aaviksoo: Ämari One of the Cornerstones of Estonia's National Defence
28 October - The Ministry of Defence introduced the project for the development of Ämari Air Base, which is required for conducting air policing operations and receiving NATO's assistance, and the Air Surveillance Division of the Estonian Air Forces.
According to Minister of Defence Jaak Aaviksoo, Ämari is one of the cornerstones of Estonia's national defence. The newly-launched three-year development project will soon allow for ensuring the protection of Estonia's airspace by NATO fighters and for receiving large transport aircrafts. The Ämari project along with other similar projects serves as a good example of practical co-operation between Estonia and NATO, said the minister.
The reconstruction of Ämari Air Base is one of the most important goals of the Ministry of Defence. Ämari Air Base is a very important and useful facility for Estonia with regard to future air policing functions. Our capability to ensure reliable host nation support depends on the completion of Ämari Air Base, since once the respective facilities are available, our allies will be able to hasten to our assistance, should the need arise.
The interceptor fighters which ensure air policing in the Baltic states could also remain at Ämari Air Base once reconstruction has been completed.
NATO's infrastructure projects are financed through the NATO Security Investment Program (NSIP). The programme was launched in 1950 with the aim of establishing the infrastructures or elements thereof, as required by NATO member states. The projects are financed through a common fund which receives contributions from all the NATO member states, including Estonia.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
Standard & Poor's May Upgrade Estonia's Ratings Outlook
28 October - There is some hope that the international rating agency Standard & Poor's will upgrade the outlook on Estonia's ratings in 2009 to stable from negative, vice president of the central bank Andres Sütt said.
"The Estonian economy's need for external financing should continue decreasing next year, and as external demand improves economic growth will more and more rely on export. This in turn gives grounds to hope that the negative outlook on the credit rating will be upgraded to stable," Sütt said.
Standard & Poor's said on Monday it had affirmed its A long-term and A-1 short-term sovereign credit ratings on Estonia with a negative outlook, while lowering the ratings on Latvia and Lithuania. According to Sütt, Estonia's economic policy in the coming two to three years has to be geared first and foremost to achieving the goal of the adoption of the European common euro currency. "Systematic activity for the adoption of the euro will strengthen the reliability of Estonia and establish a firm basis for a new economic growth cycle. Thus, it is vital to draw up a realistic and balanced state budget for 2010," the banker said.
Standard & Poor's last reviewed Estonia's ratings in January, affirming the long-term rating at A with a negative outlook.
Fitch downgraded the sovereign rating to A- with a negative outlook earlier this month.
Moody's affirmed the rating on Estonia at A1 in September. The outlook is stable.
Estonia's Government Expenditure Among Smallest in EU
23 October - The ratio of government expenditure to GDP in Estonia is one of the smallest ratios in the European Union, according to the EU statistical body Eurostat. In 2007, government expenditure in Estonia was equivalent to 35.5 percent of GDP, putting Estonia in fourth place after Slovakia (34.6 percent), Lithuania (35.2 percent) and Ireland (35.4 percent). Government expenditure in the euro area was equivalent to 46.1 percent of GDP, and government revenue to 45.5 percent. The average figures for the EU27 were 45.8 percent and 45.0 percent respectively. In both zones, the government expenditure ratio decreased between 2006 and 2007, while the government revenue ratio increased slightly.
By the government revenue ratio, Estonia ranks sixth from the bottom among the EU27 with a ratio of 38.2 percent of GDP.
The government revenue ratio is smaller still in Slovakia (32.7 percent), Lithuania (33.9 percent), Romania (34.7 percent), Ireland (35.7 percent) and Latvia (37.7 percent).
The EU average ratio was 45.0 percent and the eurozone average ratio 45.5 percent.
In terms of government sector surplus Estonia ranked sixth last year with a ratio of 2.7 percent, trailing Luxembourg (3.2 percent), Cyprus (3.5 percent), Sweden (3.6 percent), Denmark (4.9 percent) and Finland (5.3 percent).
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