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Estonian Review: 15-21 October 2008
24.10.2008
FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS
FOREIGN NEWS
European Council: Thorough Analysis of EU-Russia Relations to be Completed by Beginning of November
16 October - The foreign policy leaders of the European Union discussed the situation in Georgia and further developments in EU-Russia relations within the framework of the European Council. The European Council acknowledged that Russian forces have partially withdrawn from the zones around South Ossetia and Abkhazia in accordance with the agreements of 12 August and 8 September, and also declared that it's one step taken by Russia towards fulfilling international responsibilities.
Foreign Minister Urmas Paet stated that currently Russia has only met one small part of its obligation by partially removing its troops from the areas around South Ossetia and Abkhazia. The region of Akhalgori, which has not been a conflict region, and Kodor Valley are still occupied by Russian forces, said Foreign Minister Paet. We can't say anything regarding the complete removal of Russian troops and the fulfilment of the cease-fire agreement, Paet emphasised.
In relation to the European Union-Russia summit being held in November, the Council is calling upon both the Council of Europe and the European Commission to continue their in-depth analysis of relations between the European Union and Russia, which will be used to consider the possible continuation of negotiations for the EU-Russia framework agreement.
Foreign Minister Urmas Paet confirmed that the European Council condemned Russia's decision to recognise the independence of South Ossetia and Abkhazia on 1 September, while it supports the implementation of the cease-fire agreement of 12 August. Talks about the partnership agreement between the European Union and Russia, which are frozen in accordance with an extraordinary Council decision until Russian forces return to their pre-7 August positions, cannot resume yet, said Paet. It's necessary to wait for the audit of European Union and Russian relations, which should be ready by the November meeting of European Union foreign ministers, stated Foreign Minister Paet.
In its conclusions, the Council reaffirmed the need to strengthen the European Neighbourhood Policy's Eastern Dimension, calling for stronger relations with Ukraine, Moldova, and Georgia. Urmas Paet stated that the European Neighbourhood Policy is a values-based policy that is an important course for our partners implementing reforms.
The Council endorsed the composition of the European Union Reflection Group that will begin working in January of next year, in accordance with the 2007 decision of Council, with the goal of analysing the challenges standing before the European Union in the years 2020-2030. Foreign Minister Urmas Paet believes it is essential for the so-called group of wise men' to consider probable developments within Europe and outside of Europe, analysing first and foremost how to ensure the stability and development of both the Union and the wider region in the long run.
Irish Prime Minister Brian Cowen gave the Council an initial overview of developments since the failure of the Lisbon Treaty referendum in Ireland in June of this year.
President Ilves Met with Queen Elizabeth II
17 October - President Toomas Hendrik Ilves and Evelin Ilves met with Her Majesty Queen Elizabeth II at Buckingham Palace in London. At the meeting, the visit of Queen Elizabeth II to Estonia in October of 2006 was recalled and the long-term close ties between the United Kingdom and Estonia in the fields of economics and culture as well as defence co-operation were emphasised.
"Estonia has excellent allied and partnership relations with Great Britain in the European Union and NATO," President Ilves said. "Together with British forces, we are participating in the global peace process in Afghanistan and Iraq, and the United Kingdom has made an invaluable contribution to the development of our Defence Forces."
President Ilves was in the United Kingdom to open a business seminar in Wales and meet with the presiding officer of the National Assembly and the first minister.
Baltic and Nordic PMs Discuss Energy with Barroso
15 October - The heads of government from the Baltic states, Finland, Sweden, Denmark, and Poland and the president of the European Commission, Jose Manuel Barroso, had a meeting in Brussels to talk about the Baltic Sea region's energy issues and in particular building new power links with other European Union countries.
"The key issue was how to bring countries on the eastern shore of the Baltic Sea out of energy isolation," said the head of the Estonian government, Andrus Ansip.
Ansip said the initiative for the meeting came from Barroso, as the EU executive headed by him has listened to the Baltic states' concern and started taking action to break the isolation of the Baltic energy systems from the rest of Europe.
The Commission has suggested a plan of action according to which a commission of specialists will be formed to work out by 2010 detailed plans for changing the present situation by building new electricity and natural gas links.
The European Commission has already drawn up a Baltic energy links plan, the Baltic Investment Programme (BIP), which covers a second underwater power cable connecting Estonia and Finland as well as a Polish-Lithuanian electricity bridge and Sweden's electricity links with Latvia and Lithuania. Under consideration as well is a gas pipeline from Denmark to Poland, through which Nordic gas could be supplied to the Baltic region.
Financing for the new projects can be obtained from both EU coffers and the European Investment Bank.
Lithuania's concern about the obligation to close the Ignalina nuclear power plant by the end of next year at the latest was also under discussion, Ansip added. "The question here is about finding a legal solution rather than political support," Ansip said. In his words, there are several countries in the EU which definitely will not agree to altering Lithuania's accession agreement, and therefore some other solution must be found.
Lithuania's commitment to decommission the Ignalina power plant by the end of 2009 at the latest is included in the country's EU accession agreement.
"The EU is based on law and Lithuania must honour the agreement," Ansip said, admitting that a legal solution acceptable to Lithuania has not yet been found.
The Lithuanian government is feverishly trying to find a way to extend the lifespan of Ignalina and has vowed to raise the issue at this week's European Council.
Estonia Interested in Intensifying Economic Co-operation with Kazakhstan
18 October - Foreign Minister Urmas Paet, in Kazakhstan on a visit, met with Kazakhstani President Nursultan Nazarbayev, Prime Minister Karim Massimov, and Foreign Minister Marat Tazhin.
While speaking with President Nazarbayev, Paet stated that Estonia is interested in intensifying economic co-operation with Kazakhstan. I see information technology and transit to and from Estonian harbours as primary areas of economic co-operation, said Paet. There are very good opportunities for Kazakhstani goods in Estonian harbours as well, he said.
Kazakhstani President Nazarbajev said that Estonian entrepreneurs are very welcome in Kazakhstan, and that Kazakhstan would like to develop multi-faceted economic co-operation, including in the transit sector.
Paet stated that Kazakhstan's OSCE presidency in 2010 will give the nation significant responsibilities and opportunities to shape international development. It is also recognition of Kazakhstan's reforms up to this point. Both Nazarbayev and Paet agreed that it is essential to intensify Estonia-Kazakhstan political relations as well.
Nazarbayev and Paet also discussed European energy supplies. Both sides are interested in the creation of the Trans-Caspian Gas Pipeline and a crude oil pipeline connecting the Caspian and Baltic regions, said Paet. Paet stated that alternative energy sources are needed by both Kazakhstan as an exporter and European nations as importers. Economic matters were also the primary topic in Paet's meeting with Kazakhstani Prime Minister Karim Massimov. Paet stated that both nations feel interest towards direct co-operation among entrepreneurs. A good example of co-operation between Estonian and Kazakhstani entrepreneurs is the existent and functioning joint postal company Elektronpost.kz. Kazakhstan is also interested in Estonia's experiences in structuring an e-government, said Urmas Paet following the meeting. At the same time, both Estonia and Kazakhstan are concerned about Russia's increased railroad tariffs towards the Baltic States, Paet noted, adding that in order to further develop economic co-operation, Estonia and its Chamber of Commerce and Industry would like to organise a business seminar next year in Almaty.
In the meeting with his Kazakhstani colleague Foreign Minister Marat Tazhin, Foreign Minister Paet also discussed the nations' contributions to the building up of Afghanistan. Both Estonia and Kazakhstan are participants in reconstructing Afghanistan. Like us, Kazakhstan sees a significant problem in the narcotics trade originating in Afghanistan, Paet stated.
Another topic broached by Paet with his Kazakhstani colleague was the requirement for travellers, including Estonian citizens, to register themselves within five days of arriving in Kazakhstan. Hopefully Kazakhstan is ready to change the registration requirement for Estonian citizens, Paet said at the meeting.
Paet: Compromises Cannot be Made at the Expense of Human Rights
17 October - Foreign Minister Urmas Paet gave a speech about overcoming cultural differences and conflicts in the world during an international conference in Astana, the capital of Kazakhstan. The conference was called The Common World: Progress Through Diversity.
In his speech, he emphasised that the international community shares the responsibility of finding solutions for the world's crisis regions.
The foreign minister stressed that all the compromises made to resolve intercultural conflicts must take into account both local practices and democratic values, as well as observe internationally recognised human rights and basic freedoms. We know already from the times of the Silk Road, which united East and West, that mutually useful co-operation is only possible when we honour one another's traditions. But during the 21st century, this does not mean making compromises at the expense of human rights and freedoms, said Paet.
Paet called upon the nations of the world to increase their contributions for helping Afghanistan, so that the country may reach the point where it is capable of managing on its own. We must share our knowledge to help the people of Afghanistan restore their municipal governments, a trustworthy police force, an education system, and health care services, Paet stated. We also must pay more attention than ever before to aiding in the economic realm-restoring Afghanistan's agriculture, its energy economy, and the entire economic sector and its ability to participate in international co-operation, said Paet, bringing up specific examples of areas in Afghanistan that require further development.
Ilves: The Estonian and Welsh People Have Much in Common
15 October - The Estonians and the Welsh are small peoples only in number, and the two have a long and venerable history in common, Estonian President Toomas Hendrik Ilves said while addressing the Welsh National Assembly on Wednesday.
According the Ilves, Estonia and Wales are first and foremost united by their common contribution to the European common culture.
In Ilves' words, protection of the ecological system of nations and cultures is a key obligation of humankind. This is why the European Union is addressing the topic; this is why Europeans, be they Welsh, Estonian, or French-speaking Czech, are tackling this issue.
He said we live in a global village in which we'd like to be understood by all, but this means spending a considerable part of the mental resource of our culture on translation. A small nation must also spend much time learning languages of larger countries.
"The Estonian language is, by the number of speakers, perhaps among the 200 largest in the world, and perhaps even among 100 largest in terms of written culture. Welsh wouldn't be far behind. The global search engine Google offers the opportunity of holding a dialogue with it in 118 languages, among them Estonian and Welsh, but itself recognises only 43 languages, and I'm proud to say that Estonian is one of them," the head of state said.
A machine recognising a language is only a partial step, Ilves said. "A crucial breakthrough and timesaver will arrive only when computers are able to perform quality translation from and into our languages," he said, adding that we might be closer to this happening than to discovering the secret of how rocks from South Wales ended up in Stonehenge.
The president met on Wednesday in Cardiff with First Minister of Wales Rhodri Morgan. The two discussed the impact of the financial turmoil on Estonia and Wales and ways to alleviate its consequences. Common features of the Estonian and Welsh cultures, questions of language policy, Estonia's progress in information and telecommunications, and possibilities for co-operation were also under discussion. The Estonian president also met with the Presiding Officer of the National Assembly of Wales Lord Dafydd Elis-Thomas.
Ilves opened an Estonian-Welsh business seminar and attended the opening of a joint exhibition by Estonian architect Vilen Künnapu and his son August, a painter, within the framework of the Walestonia Festival.
Paet Met with Qatari Minister of International Co-operation
19 October - Foreign Minister Urmas Paet met with Qatari Minister of State for International Co-operation Khalid bin Mohammed Al-Attiyah in Astana to discuss international co-operation.
Paet stated that both political and economic ties with Qatar need to be strengthened. Estonia's relations with Persian Gulf nations have been modest until now, and it's time to strengthen them, Paet noted.
Paet said that Estonia would like to improve its agreement base with Qatar as well. We are prepared to conclude an agreement on trade, economical and technical co-operation, as well as an agreement for the protection of investments, said Paet. Estonia also hopes that negotiations for a free trade agreement between the European Union and the Persian Gulf Co-operation Council will soon be completed. This will help to intensify co-operation.
At the meeting, Paet gave his Qatari colleague an overview of Estonia's economic environment and investment opportunities. Estonia also values Qatar's experiences in the development co-operation sector. At the end of November an international development co-operation financing conference will be held in Qatar, in which Estonia will be participating.
Foreign Minister Urmas Paet extended an invitation for the international co-operation minister of Qatar to visit Estonia, which the latter accepted.
Estonia Intensifies Co-operation with Flanders
15 October - Director general of the Foreign Ministry's second political department Malle Talvet-Mustonen and Director of the Europe Division of the government of Flanders Freddy Evens signed a co-operation protocol today. The protocol gives both Estonians and the Flemish the opportunity to significantly intensify co-operation between the two countries.
At the signing of the action plan, which spans the years 2009-2011, the leaders of both delegations emphasised that this protocol contains many areas that have previously been ignored, and it is also fairly flexible and open, so that other concrete projects can be added if necessary.
Freddy Evens, the leader of the Flemish delegation, brought attention to both increased co-operation between harbours as well as projects aimed towards Flanders' interest in public administration and e-government.
The leader of the Estonian delegation Malle Talvet-Mustonen stated that prior co-operation and reciprocal contacts with Flanders have been good and productive.
I'm very pleased to acknowledge that co-operation between museums is intensifying, both in the organisation of exhibits and the exchange of experts, as is the exchange of students and instructors between Estonian and Flemish universities, she said. Talvet-Mustonen also emphasised the growing interest both parties have towards environment-related co-operation projects, including environmental education.
The foundation for the 2009-2011action plan is an agreement concluded in March of 1996, on the basis of which every three years the parties agree upon new priority areas and concrete projects for co-operation.
DOMESTIC NEWS
Television Journalist Urmas Ott Dies at Age 53
17 October - Urmas Ott, the television talk show host whose fame extended far beyond Estonia with the shows he made with Russian stars in the final years of the Soviet Union and after, died today at the age of 53 at Tartu University Clinical Hospital.
After working as a news host, Ott launched his popular talk shows on Estonia's Soviet-era state television in 1986. He went on to host the same format in Russian for Moscow-based television, interviewing scores of top Russian and Soviet stars over the years.
In later years Ott worked for private Estonian TV stations and the radio.
Urmas Ott's departure causes a painful feeling of emptiness and a profound silence, President Toomas Hendrik Ilves wrote in a letter of condolence to Ott's family. His interviews and books will continue to show us the sharply direct, outwardly very energetic and inwardly extremely sensitive Urmas Ott, who cared about his people and loved his country.
DEFENCE NEWS
Aaviksoo Gave Overview of National Defence in Estonia
15 October - Minister of Defence Jaak Aaviksoo gave a press conference to introduce the new Estonian Defence Forces Development Plan 2009-2018 and to talk about the meetings of the NATO defence ministers in London and Budapest and the latest public opinion and national defence poll.
Lately there has been a lot of speculation on NATO contingency plans. Our recently commissioned survey indicates paradigm shifts in threat awareness among the Estonian population after the military conflict in Georgia and also higher expectations. Likewise, these events have changed the thinking patterns in the capitals of NATO. The so-called reasonable defence planning for Estonia, the Baltic states, Poland and others - together with NATO as a whole - is an inevitable and consensual process, said the minister.
For others to help us, we must first help ourselves. Excellent co-operation between our Ministry of Defence and the Estonian Defence Forces will result in the completion of the Estonian Defence Forces Development Plan 2009-2018 in the near future; the document must contribute to planning 2% of the GDP, allocated to the military national defence budget, over the next decade.
Aaviksoo continued, The plan, once endorsed by the government, will establish realistic goals for capability development in all the priority spheres, from intelligence and surveillance to air defence, anti-tank defence, armoured vehicles to protect the infantry, and the review of the operational structure. Resources will be allocated to contribute to the achievement of the established goals by 2018.
One thing is also clear - the events in Georgia are proof that the current conceptual trends applicable to the development of national defence in Estonia - for example, combining professional soldiers and reservists produced by conscription - will prevail.
All high-ranking NATO commanders who have recently visited Estonia have confirmed the appropriateness of the chosen model, considering our geo-strategic location, history and resources. Military national defence has been an excessively closed sphere of administration. Military national defence, based on the total defence principle and reserve army, require consistent dialogue and a far more open atmosphere. We must discuss our choices and decisions more than we did before - and this is a true paradigm shift - starting from the new development plan. We are about to launch the upcoming infrastructure projects and air policing projects and the design for the development of the Ämari Air Base.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
Estonia Meets EU Average for Percentage of GDP Allocated to R&D
21 October - Estonia is average among European Union member countries in terms of financing the research and development (R&D) sphere, according to a Eurostat study.
While 1.84 percent of the gross domestic product (GDP) was the average allocated by European Union states for research and development and labour costs of the sector in 2006, in Estonia the percentage was 1.1, the 15th highest in the EU.
The proportion of funding for R&D was the highest in Sweden (3.73 percent of GDP) and Finland (3.45 percent); of new member countries Slovenia (1.59 percent) and the Czech Republic (1.54 percent) were ahead of Estonia. Allocations for research and development were the lowest in Cyprus, Romania, Bulgaria, and Slovakia -- all under 0.5 percent of GDP.
Of the world's biggest economies, Japan (3.20 percent) and the United States (2.62 percent) were considerably ahead of the EU average.
At the same time, Estonia took first place in the European Union in terms of the growth in means allocated for R&D in the years 2001-06, by 25.3 per cent a year. The average growth in the European Union in the same period was 3.2 percent.
The growth in these allocations was also higher than 20 percent in Latvia (24.4 percent), Malta (23.5 percent) and Romania (20.2 percent).
According to the Lisbon Strategy, which is directed at raising the global competitiveness of the European Union's R&D allocations, they should all be brought up to 3 percent of GDP by 2010.
The Lisbon Strategy also recommends that two-thirds of R&D expenses could be financed by the business sector. The actual European Union average concerning this point was 54.6 percent in 2005.
The leading countries in terms of the share of business in the R&D sphere are Luxembourg (79.7 percent), Germany (67,6) and Finland (66.9 percent), with Cyprus (16.8), Latvia (20.8) and Bulgaria (27,8 percent) bringing up the rear. The respective Estonian figure is slightly under 40 percent.
Over Half a Million Tourists Used Estonian Accommodation Establishments this Summer
15 October - Statistics Estonia said 572,000 foreign tourists stayed in Estonian accommodation establishments in the three summer months, 5 percent more than in the same period last year. The number of foreign tourists using accommodation services increased in all three summer months compared to the respective months last year.
The share of foreign tourists among accommodation establishments' clients is still about two thirds of the total. Of the foreign tourists that stayed in the accommodation establishments, 80 percent came to Estonia on holiday; for only 13 percent the stay was connected with work or business. Traditionally, most of the foreign tourists-64 percent-stayed in Tallinn.
Residents of Estonia stayed in accommodation establishments less frequently than last year, with 339,000 Estonian residents staying in them, 16,000 fewer than last year. Of the accommodated Estonians, 64 percent were on holiday and 20 percent stayed in the establishments for work reasons.
Although accommodation establishments provide various different opportunities for an interesting and healthy holiday, the main reasons for the organisation of a domestic trip were the weather and economic opportunities.
In August there were 940 companies providing accommodation services to visitors, with 19,500 rooms and 44,300 beds at their disposal. The occupancy rate of the rooms was characteristically high for August, with more than half the rooms occupied. However, occupancy was three percentage points lower than last August. During August the average cost of an overnight stay was 473 kroons (EUR 30.22), eight kroons higher than in August 2007.
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