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Estonian Review: 1-7 October 2008
12.10.2008
FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS
FOREIGN NEWS
Baltic and Benelux Foreign Ministers: EU Solidarity in Relations with Russia is Essential
2 October - The foreign ministers of the Baltic and Benelux nations recognised at their meeting in Sagadi that the European Union and its member states must have close co-operation in issues within the Union as well as in relations on the global arena, including those with Russia.
Foreign Minister Urmas Paet said that these get-togethers between the foreign ministers of the three Baltic states and Belgium, Holland and Luxembourg are very valuable for international co-operation. Mutual understanding and co-operation can be achieved through close relations. Exchanging viewpoints in smaller groups within the European Union is essential for the solidarity of the whole European Union, Paet said
Foreign Minister Urmas Paet also stated that evidence of the European Union's solidarity can be seen in the joint activity that took place during and after the Georgia crisis. The European Union's efforts succeeded in stopping the military conflict in Georgia, organising humanitarian aid for those who suffered in the conflict, and composing the European Union Monitoring Mission, which began working in Georgia on 1 October, Paet added. The foreign ministers of the Baltic and Benelux countries emphasised that the European Union will be unitary and focused on European values at the upcoming conference in Geneva, where matters of building up Georgia and political aid will be discussed, and also at the conference of donors to Georgia taking place in Brussels in mid-October.
Another topic at the Baltic-Benelux meeting was the European Neighbourhood Policy's Eastern Dimension. Significant emphasis was placed on discussion of the future of the European Union. The ministers agreed that by December's Council, an action plan should be drawn up of possibilities for moving forward with the Treaty of Lisbon.
The ministers also emphasised that the European Union must formulate an outlook for overcoming the financial crisis that is spreading through the world as soon as possible. The topic will be discussed at upcoming meetings of the European Union foreign and finance ministers.
NATO Visibility Important to Member States
1 October - Foreign Minister Urmas Paet met with USA Undersecretary of State for Political Affairs Dan Fried, who was in Estonia on a visit. Undersecretary Fried also met with President Toomas Hendrik Ilves and Prime Minister Andrus Ansip.
Within the context of NATO, the Estonian foreign minister and USA undersecretary of state discussed the changed security situation in the world. Urmas Paet and Dan Fried stated that increasing the visibility of NATO is very important for the inhabitants of NATO member states. We greatly appreciate the USA's participation in Baltic air surveillance, said Foreign Minister Paet. The USA is taking over the tasks of NATO's Baltic air-policing mission from Germany.
Foreign Minister Urmas Paet also confirmed that Estonia continues to support the Euro-Atlantic integration of Georgia and Ukraine, as well as the idea of giving NATO Membership Action Plans (MAPs) to the countries at the first possible opportunity. USA Undersecretary of State Dan Fried stated that the United States continues to support NATO enlargement.
Another topic at the meeting was the continuation of the international missions in Iraq and Afghanistan. Foreign Minister Urmas Paet stated that the presence of an international coalition in Iraq and Afghanistan is still necessary. Estonia should continue contributing to strengthening the security of Iraq and Afghanistan for as long as those nations still want our help, said Foreign Minister Paet. The foreign minister also noted that beside the military contributions, Estonia would like to pay more attention to increasing its civil contributions in both countries.
Estonia is co-ordinating the building up of the health care sector in Helmand province in Afghanistan, said Paet.
While talking about visa freedom with the USA, Foreign Minister Urmas Paet said that Estonia has taken all the necessary steps for achieving visa freedom. At the beginning of the week, Estonia and the United States concluded an agreement to prevent and combat serious crime, which was the final requirement for visa freedom. We hope that as early as the beginning of next year, Estonian citizens will have the opportunity to travel to the USA without visas, said Foreign Minister Paet.
Estonia Supports Visa Liberalisation for Serbia
6 October - Foreign Minister Urmas Paet had meetings with Serbian Prime Minister Mirko Cvetkovići, Foreign Minister Vuk Jeremići, and deputy speaker of the Parliament Gordana Čomići during his visit to Serbia. In all of the meetings, Paet emphasised Estonia's desire to intensify relations between the countries, both as bilateral relations and also in the European Union dimension.
Estonia's position is that visa liberalisation agreements for Serbia and the other Western Balkan countries are a matter to be decided in the near future, Foreign Minister Urmas Paet said in his meeting with Serbian Prime Minister Mirko Cvetkovići. A visa liberalisation agreement is very important for the Serbian community, Paet emphasised.
It is in Estonia's interests for the Western Balkans to be a stable and developing region, and Estonia is prepared to share its own experiences from preparing for EU accession with Serbia. We also think visa freedom for citizens of Serbia and other Western Balkan nations is essential, as is achieving the status of a European Union candidate state, he added.
At the meeting, it was confirmed that the heads of state of both Estonia and Serbia would like for relations between Serbia and Estonia, including economic relations, to develop more rapidly than before. So that relations between the two nations could grow to a new level, we would like to reach the final stretch of the agreement for the avoidance of double taxation as soon as possible, discussed Foreign Minister Paet. The conclusion of the agreement for the avoidance of double taxation will give a positive boost to the growth of Estonia-Serbia trade relations and investments, said Paet. While talking about developing bilateral relations, the possibility of teaching Serbian at Tartu University was discussed.
Paet confirmed that Estonia supports Serbia's rapid development in co-operation directed towards the European Union and NATO. Foreign Minister Paet also extended an invitation for his Serbian colleague to visit Estonia, which the latter accepted.
Secretaries General of NB8 Foreign Ministries Discuss Baltic Co-operation
2 October - A meeting of the secretaries general of the foreign ministries of Nordic and Baltic nations (Nordic-Baltic 8 or NB8) took place in Tallinn from 1-2 October.
While talking about the joint activities of the Baltic Sea states, Foreign Ministry Secretary General Matti Maasikas brought up Estonia's co-operation with Finland and Latvia as a positive example. Finland and Latvia represent Estonia for the issuing of Schengen visas in over ten nations where Estonia lacks its own foreign representation. It is also important for the European Union to co-ordinate the giving of consular aid in crisis regions, said Maasikas. During the Russia-Georgia conflict, Estonia co-operated with Finland, Latvia, Lithuania and Denmark to bring those citizens home.
On the topic of energy security, Secretary General Maasikas stated that in order for it to be guaranteed, a well-functioning common energy market must exist among the member states. Creating a common Nordic-Baltic energy market would help to increase the reliability of supplies, said Secretary General Maasikas.
The secretaries general also addressed matters related to the European Neighbourhood Policy. According to Maasikas, co-operation with the Neighbourhood Policy's Eastern Dimension states should be strengthened. A good basis for this is provided by the proposals made by Sweden and Poland in May.
Co-operation of the Nordic and Baltic nations, or NB8, is a regional co-operation format that includes Sweden, Finland, Norway, Iceland, Denmark, Estonia, Latvia, and Lithuania. Estonia is the co-ordinating nation for NB8 foreign policy co-operation in 2008. This position will be passed on to Iceland in 2009.
Estonian Observers Started Work in Georgia
1 October - The European Union Monitoring Mission, which includes two Estonian observers, started its work in Georgia this week.
The monitors from Estonia are Tamar Tamm, chief of the logistics department of the Southeast border guard district, and Piret Palusoo, adviser at the police college of the Estonian Public Service Academy.
The Estonians are assigned to the Poti field office in western Georgia, near Abkhazia, along with 10 monitors from Spain, eight from Greece, four from Austria, and three from Hungary and Latvia each.
Lithuania has sent five monitors, who operate out of the Zugdidi field office also in western Georgia, along with monitors from Italy, Germany, Czech Republic and Lithuania.
Estonia was ready to send nine people on the monitoring mission, but was asked to send only two under the current arrangement between the 22 countries taking part in the mission.
Under the French-brokered deal, the observers, numbering at least 200, must monitor the so-called buffer zones that emerged following the war in August, from which Russian troops must pull out by 10 October.
The EU expects to co-ordinate the gradual withdrawal of Russian forces and the arrival of Georgian police so as to avoid a security vacuum.
Illegal Immigration a Concern for Entire European Union
3 October - Foreign Minister Urmas Paet met with Maltese Foreign Minister Tonio Borg, who was in Estonia on a visit.
The ministers spoke thoroughly about illegal immigration from Northern Africa, which is a cause for concern in Malta, the other Mediterranean Sea states, and the entire European Union. For Malta, it is a major concern and problem that cannot be dealt with alone. Both ministers emphasised the importance of European Union solidarity in fighting illegal immigration. The solution to the problem lies in European Union co-operation, but especially in European Union co-operation with Northern African nations. We can fight the initial problems that cause illegal immigration from those nations, said Paet.
In talking about the future of the European Union, the Estonian and Maltese foreign ministers agreed that although the Treaty of Lisbon is currently blocked, that should not be a reason to halt further enlargement of the European Union. Negotiations with Croatia should be carried out to completion, and the other candidate states should have enlargement perspectives regardless of developments regarding the Treaty of Lisbon, Paet emphasised.
While talking about European Neighbourhood Policy, the foreign ministers agreed that unified actions towards the Eastern Dimension are essential for the stabilisation of the region and for tighter integration with the European Union, including from an energy security standpoint. In talking about the Southern Dimension of the Neighbourhood Policy, the topic of the Mediterranean Partnership was addressed.
Foreign Minister Paet recognised Malta's active participation in finding solutions to problems in the Mediterranean Sea region, as well as Valletta's desire to become the location of the secretariat of the Mediterranean Union.
Estonia to Join International Development Association
1 October - The government plans to authorise the finance minister to sign the statutes of the International Development Association on behalf of Estonia.
After accession to the IDA, Estonia will be able to support the development of poorer countries through the organisation.
Estonia's one-off mandatory contribution to the IDA is nearly 10 million kroons (EUR 0.64 mln). In addition, a payment in the sum of 2.2 million kroons will have to be made into the IDA's previous financing rounds. Estonia is expected to contribute 34.9 million kroons in funding over the next 3-9 years for less developed countries.
The IDA was established in 1960. It is one of five World Bank units that provide funding for the poorest developing nations. It grants long-term interest-free credit to countries where the annual average income per head of population is below 1,065 US dollars. The IDA has 167 members.
DOMESTIC NEWS
Ministry of Education to Provide Schoolteachers with Laptops
4 October - An estimated 15,000 teachers in Estonia could receive a laptop computer from the Ministry of Education and Research during the next few years.
The goal is to supply all teachers in state-financed general education schools with laptops during the years 2008-2010. A teacher must work at least half-time to qualify for a free computer.
There are 12,845 teaching jobs at Estonia's general education schools this academic year, filled by 15,000 different people.
The first 4,000 laptops are to be handed out before the end of this year.
The first batch comes from Microlink Eesti, which in a public procurement tender held by the Tiger's Leap Foundation offered to supply HP Compaq 6910p business class laptops for 36.1 million kroons (EUR 2.3 mln).
An arrangement for the renewal of the computers is still to be worked out.
DEFENCE NEWS
Government Approves Draft Act for Continuation of Afghani Mission
2 October - The government approved the draft of a resolution regarding Estonia's participation in Afghanistan and has now sent it to the Riigikogu. The resolution concerns extending the Estonian Defence Forces' mission in Afghanistan to the end of 2009 and increasing the maximum number of Defence Forces members serving in Afghanistan to 170.
The current mandate of the Riigikogu, which expires at the end of 2008, provides for deploying up to 150 members of the Defence Forces to Afghanistan. In 2009, Estonia intends to increase the contingent in Afghanistan to include a tactical air control party and an improvised explosive device disposal team (IEDD team). Consequently, the Ministry of Defence wants to raise the upper limit to 170 members of the Defence Forces.
According to Minister of Defence Jaak Aaviksoo, participation in the international peace support operation in Afghanistan is directly related to the security interests of the Estonian state. The situation in Afghanistan is still complicated, and the drug trafficking and terrorism originating from Afghanistan represent a direct threat to Estonia's security, Aaviksoo said.
"The quality of our contribution will also increase with a larger Estonian contingent, as we will provide new and more complicated capabilities, which are required not only for international operations but also to protect our own territory, if necessary, Aaviksoo added.
The draft of the mandate also provides for doubling the upper limit of the members of Defence Forces twice a year during the rotation of the soldiers that participate in the operation, allowing 340 members of Defence Forces to be present in the area. The Estonian infantry company has had its own area of responsibility in Afghanistan, Now Zad, since 2007, and it cannot remain unmanned during the rotation. Therefore, twice a year (in May and November), a temporary simultaneous presence of both the departing and deployed units in the area of operation is required. This contributes to a smooth take-over of the area of responsibility by the deployed units, while the departing unit can transfer its knowledge concerning the area of responsibility and the enemy.
There are currently 140 members of Defence Forces serving in Afghanistan. The largest part of Estonia's contribution to Afghanistan is the Estonian infantry company, which forms a part of the Helmand Task Force, under the command and control of the United Kingdom, and a mortar platoon, deployed to support the infantry company. The Estonian contingent also includes a cross service team at Kabul airfield, a military police close protection team, a number of staff officers, serving at different HQs and a national support element.
The Estonian Defence Forces have been participating in the operation in Afghanistan since 13 March 2003. Estonia participates in the ISAF operation under the UN mandate and has been extended an invitation by the democratically elected parliament and government of Afghanistan.
EU Defence Ministers Discuss Military Capabilities
2 October - Minister of Defence Jaak Aaviksoo participated in an unofficial meeting of the European Union defence ministers in Deauville, France. The development of the military capabilities of the European Union formed the basis of discussions.
The more efficient activities of the European Defence Agency through different capability development projects were discussed. The development of joint military capabilities should be the priority of the European Security and Defence Policy. The joint helicopter initiative of the United Kingdom and France has been launched successfully and Estonia will contribute to this initiative with two pilots, commented Minister of Defence Jaak Aaviksoo.
Other topics of discussion included the need for developing the European defence industry and market, defence co-operation, and the use of the EU Battlegroups.
The European Union defence ministers also discussed the European Union military operations in Bosnia-Herzegovina and Chad and the problems of piracy off the Somalian coast. When discussing the operation in Bosnia-Herzegovina (EUFOR ALTHEA), the ministers were of the opinion that the current security situation is stable; however, the continued presence of the EU is still needed in Bosnia-Herzegovina due to the tense political situation.
The ministers deemed it necessary for the EU to further counter piracy off the Somalia coast in addition to the EU co-ordination initiative launched in September.
Minister of Defence Jaak Aaviksoo and his Dutch counterpart Eimert Van Middelkoop signed a bilateral defence-related co-operation agreement. The previous agreement concluded between Estonia and the Netherlands dates back to 1997.
Deputy Chairman of NATO Military Committee Praised Estonian Contributions
3 October - Minister of Defence Jaak Aaviksoo met with Lieutenant General Karl Eikenberry, the deputy chairman of the NATO Military Committee, to discuss the aftermath of the Russia-Georgia conflict, NATO transformation, and the operation in Afghanistan and its future.
Subjects related to developing NATO's multi-national capabilities were also discussed at the meeting. Estonia participates in a number of initiatives, such as the strategic airlift capability (SAC) project and the British-French helicopter initiative.
The reinforcement of the NATO Response Force (NRF) was also an important topic discussed at the meeting. Estonia will contribute actively to NATO operations, while also continuing to contribute to NRF, Minister Aaviksoo confirmed.
Lieutenant General Eikenberry praised Estonia's capability and willingness to contribute to NATO-led operations in Afghanistan and Kosovo and, above all, the activities of the Estonian Defence Forces in Helmand province, in southern Afghanistan. The deputy chairman of the NATO Military Committee also acknowledged the national defence model chosen by Estonia, which combines professionals, members of the Defence Forces, and reservists.
Lieutenant General Eikenberry, who visited Estonia at the invitation of the commander of the Defence Forces, will also meet Chairman of the National Defence Committee Mati Raidma, as well as visit the NATO Centre of Excellence for Cyber Defence and the Ämari Air Base during his stay in Estonia.
Estonia to Contribute Two Pilots to French-British Helicopter Initiative
2 October - Two military pilots from Estonia are to receive training as part of the Franco-British initiative aimed at plugging a chronic shortage of helicopters able to conduct peacekeeping missions.
Once the pilots have obtained their qualifications they will be employed on NATO or EU missions. Training of the pilots will start in the near future.
Countries are participating in the helicopter initiative according to their capabilities, contributing either helicopters or personnel or providing training.
The shortfall in helicopter capacity is known to have hit EU security plans, forcing it to delay operations. Under the scheme, European armies with the ability to run helicopter missions in regions such as Africa and Afghanistan will share those capabilities with others. These could range from training personnel for such conditions to equipping helicopters with the dust filters needed for flights in desert conditions, a report this spring said.
The Franco-British initiative was launched in March and is due to work in conjunction with NATO's military headquarters in southern Belgium.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
EU Heads of Government Made Joint Statement on Stability of Financial System
6 October - The heads of government of the European Union made a joint statement at the initiative of France, the holder of the presidency of the European Union, in which they confirmed their readiness to apply all means necessary for ensuring the stability of the financial system.
We are ready for additional injections of liquidity from central banks, activities for restructuring individual banks and expanding deposit insurance, reads the common statement made today.
The statement provides that although depositors have not lost money in any EU member sate in the course of the current crisis, all required measures will be applied to protect the financial system as a whole, as well as individual depositors. By applying these measures, we recognise the need to co-operate closely, the statement says.
Shipper Tallink's Passenger Numbers up 12 Percent in September
3 October - Ships of Estonia's Tallink carried in September a total of 562,392 passengers, nearly 12 percent more than in the same month a year ago.
The biggest increase in passenger numbers was recorded on the Latvia-Sweden route, Tallink said, attributing the 32.7 percent growth to putting a bigger vessel into operation on the line.
On the Estonia-Finland route, Tallink carried 239,264 passengers last month, up by 15 percent year on year. Travellers between Finland and Sweden numbered 225,796, almost 8 percent more than in September 2007, and the number of passengers on the Estonia-Sweden route, at 53,930, represents a year-on-year growth of 11.2 percent.
Baltika's Q3 Sales up 9 Percent on Year
2 October - Consolidated sales of the Estonian garment group Baltika totaled 336 million kroons (EUR 21.5 mln) in the third quarter, representing an increase of 9 percent from the same period last year.
Retail sales grew by 10 percent and wholesale by 19 percent year on year. Comparable store sales growth was 7 percent. The growth was strongest in August with total sales surging 23 percent.
CEO Meelis Milder said third-quarter sales show continuation of the turnaround in the company's business cycle that started in summer. "Focusing on raising efficiency on large markets has produced the desired result -- Baltika is at the moment rather bucking the trend in the Estonian economy," he said.
According to Milder, the reason behind the successful third quarter is stable solid sales on the Central and East European markets and strong supply at the start of the fall season.
In Central Europe retail sales soared 82 percent, in East Europe 20 percent, and in the Baltic states 1 percent of growth was recorded in the third quarter.
The nine-month sales revenue came in at 887 million kroons, up by 5 percent from the same period last year.
At the end of September Baltika Group had 125 stores with a total sales area of 24,770 square meters. The company plans to open 9-11 more stores within this year.
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