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Estonian Review: 24-30 September 2008
03.10.2008
UNITED NATIONS 63rd GENERAL ASSEMBLY 22-26 SEPTEMBER 2008
FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS
UNITED NATIONS 63rd GENERAL ASSEMBLY
22-26 SEPTEMBER 2008
President Ilves: We Cannot Allow Provisions of International Law to be Observed Selectively
24 September - Speaking on behalf of Estonia at the 63rd session of the UN General Assembly, President Toomas Hendrik Ilves focused on three topics: the development objectives for the millennium and the possibilities for achieving them; natural catastrophes and catastrophe aid; and the war between Russia and Georgia.
The Estonian head of state asked what the recent Russian-Georgian conflict means to the United Nations. He then stated that it is extremely regrettable that the basic principles of the United Nations enshrined in the Charter of the UN-like the unlawfulness of threatening or using aggression against the territorial sovereignty of another country-have been so brutally violated.
We are totally within our rights to demand and ensure that the UN have the capacity to persuade one member state to withdraw its forces from the territory of another sovereign member state and to end its aggression, the Estonian head of state said. The capacity of the UN to fulfil the expectations placed on it should not depend on whether the given member state decides to base its activities on the good practices of international law or not. According to President Ilves, we cannot allow the provisions of international law to be observed selectively, because in that case there no longer is any international law.
Russia's behaviour in the weeks following the cease-fire shows that unfortunately, even in the first decade of the 21st century, it is possible to refuse to honour international treaties, to interpret them at one's discretion, and only observe international laws when it serves one's purposes. A permanent member of the Security Council in particular should observe the provisions of the UN Charter with conviction, President Ilves said.
We must recognise that in the interests of the international community, it is essential to intensify the capacity of the UN to regulate and resolve conflicts. It has become entirely clear that it is important to continue the reformation of the Security Council.
President Ilves recalled that Georgia has also been hit by cyber attacks, which are a wider international problem and a form of aggression that no country can combat on its own. He called upon the UN member states to view the risks related to cyber security with the utmost seriousness and affirmed that Estonia, which has practical experience in fending off cyber attacks, is ready to make a contribution to the prevention of this new form of warfare.
Speaking of developmental aid, President Ilves stressed, Firstly, each state is responsible for its own development. Thus, in order to guarantee steady development, developing countries must strengthen their administrative capacities and infrastructures, intensify their battle against corruption, and set their economic environments in order. This is the only way to create suitable conditions for the effective receipt of development aid and the more efficient use of received assistance. President Ilves also stated that it is important that donor states and organisations increase their effectiveness by co-ordinating and harmonising their activities.
In the case of humanitarian catastrophes-whether they are disasters caused by nature or people-it is vitally important for help to arrive at the scene of the disaster as soon as possible, and that the access of humanitarian aid experts be guaranteed regardless of their nationality or affiliation, President Ilves said. He added, Unfortunately, recently several incidents have occurred in which countries have only allowed aid from foreign countries onto their territories under severely restricted conditions. It is the weakest and most vulnerable victims that suffer the most if such policies are enforced.
Estonia Has Increased Role in Giving Development Aid
25 September - In his speech at the UN Millennium Goals summit during the UN General Assembly, Foreign Minister Urmas Paet emphasised the importance of education and health care to a nation's development and gave an overview of Estonia's contributions in these areas.
Paet noted in his speech at the education and health care roundtable that Estonia has consistently increased its monetary support for development co-operation through international aid organisations as well as bilateral projects. Estonia has successfully increased its role in international development aid over the past few years, said Paet. He mentioned Estonia's education-related development co-operation projects in Afghanistan, Georgia, Moldova, and Ukraine. Paet also mentioned how scholarships for studying at Estonian educational institutions are given to students of Finno-Ugric descent as well as others.
Foreign Minister Paet stated that improving the accessibility of education is a primary goal of Estonia's development co-operation. Education and research play an invaluable role in strengthening the development of a nation, emphasised Paet in his speech.
Paet also expressed concern over the situation of health care in the world. Unfortunately it must still be recognised that slower progress is being made in the health care sector in those same nations where the spread of the HIV virus and AIDS are the highest, and also in areas rife with conflict, said Paet, asserting that the UN Millennium Development Goals are not attainable without adequate investments in health care systems and hospital development.
FOREIGN NEWS
EU Foreign Ministers Discuss EU-USA Co-operation with Secretary of State Rice
24 September - Estonian Foreign Minister Urmas Paet and his European Union colleagues met with Secretary of State of the United States of America Condoleezza Rice. The meeting took place took place within the framework of the UN General Assembly and the European Union foreign ministers' week. Their discussions focused on developments in Georgia and Russia. Other topics on the agenda were the Middle East peace process and matters related to Iraq's nuclear programme.
Both the European Union foreign ministers and the US secretary of state acknowledged that a new level of quality was reached in EU-USA relations during the Georgia crisis, and that there are few problems in the world that could be solved without EU-USA co-operation.
The European Union and the United States worked and are still working in close co-operation on matters related to Georgia, stated Foreign Minister Urmas Paet. He emphasised that the issue of Georgia's territorial integrity is extremely important to both the European Union and the United States. During the discussions, we agreed on the common position that only nations that recognise Georgia's territorial integrity may participate in the upcoming conference of donors to Georgia in Brussels, he added.
The EU and USA foreign ministers shared information about how the preparations for the European Union Monitoring Mission are going according to plan and the mission will begin its observation work on 1 October. The ministers noted that in addition to the monitoring mission, some kind of planned aid is essential for the rebuilding of Georgia, including co-operation from the UN, World Bank, and IMF.
The European Union has decided to give Georgia 500 millions euros for reconstruction over the next three years, and the first 100 million will be given this year already. Contributions from member states will be given separately, Paet emphasised. This sum is to help refugees, restore and develop infrastructure, build up the energy sector and the national economy, and ensure macroeconomic stability, said Paet.
Ministers Sign Final Prerequisite Agreement for Visa Freedom with USA
29 September - Estonian Interior Minister Jüri Pihl and Justice Minister Rein Lang signed an agreement in Washington that serves as a prerequisite for visa-free travel between Estonia and the United States.
The intergovernmental agreement on the combating and prevention of serious crime was signed on behalf of the US government by Homeland Security Secretary Michael Chertoff and Assistant Attorney General Matthew Friedrich.
"This agreement is extremely important and necessary in today's world full of risks, where international terrorism, cross-border crime, and illegal immigration are jeopardising countries' internal stability and people's daily lives, and are undermining the mainstays of a democratic society," the Estonian interior minister said during the signing of the agreement.
The agreement is the final prerequisite for the accession of Estonia to the US visa waiver program. Before the decision to expand the program is made, the US secretary of state must formally name Estonia a candidate for visa waiver.
Once that has been done, the homeland security secretary must make four more steps -- certify the system of checking departing air passengers and confirm that it is 97% effective, certify the system of electronic travel permits, confirm that Estonia does not pose a threat to the security and immigration arrangements of the United States, and formally notify the Congress that a decision has been made to extend the Visa Waiver Programme to Estonia.
Maasikas Shares Estonian Priorities for Baltic Sea Strategy
30 September - A meeting of the European ministers of the Nordic and Baltic nations (Nordic-Baltic 6 or NB6) took place in Helsinki. The Estonian delegation was led by Foreign Ministry Secretary General Matti Maasikas.
Items discussed at the meeting were opportunities tied to the Baltic Sea Strategy and the Treaty of Lisbon coming into effect.
The Baltic Sea Strategy needs to be as focused, simple, and straightforward as possible. Foreign Ministry Secretary General Matti Maasikas stated that Estonia's goal is to actively participation in the discussions, so that Estonia's priorities would be reflected in the strategy. We hope that the strategy will be approved by the second half of 2009, when Sweden will be the presidency of the EU, said Matti Maasikas.
Maasikas stated that Estonia's priorities in the Baltic Sea Region Strategy are spatial integration and competitiveness. Another important area is the four basic freedoms-goods, services, capital, and labour-which should function effectively without borders. At the meeting, Maasikas also singled out and emphasised the importance of the so-named fifth basic freedom, the free movement of knowledge.
Paet Met with Foreign Minister of Senegal
23 September - Estonian Foreign Minister Urmas Paet met with Senegalese Foreign Minister Cheikh Tidiane Gadio in New York within the framework of the UN 63rd General Assembly.
At the meeting, they discussed the possibility of visa freedom to Senegal and bilateral relations in the economic and development co-operation realm. The foreign ministers agreed that one potential area for co-operation is tourism. Sub-Saharan African nations are becoming an attractive vacation destination for Estonians, and visa freedom would definitely help to develop tourism ties, said Foreign Minister Paet.
The Estonian and Senegalese foreign ministers also discussed advancing reciprocal investments and economic relations, and felt that it would be necessary to conclude an agreement for the avoidance of double taxation.
Tuesday's meeting between the foreign ministers was the first bilateral meeting since Estonia and Senegal established diplomatic ties together, which happened on 17 September 1991.
DOMESTIC NEWS
Ansip: Priority of State Budget Next Year is Education
25 September - When presenting the state budget to the Riigikogu, Prime Minister Andrus Ansip said that the indisputable priority for next year will be education. He stated that pensioners and young families can also feel at ease and secure, as the increase in pensions and the payment of the parental benefit will continue. The obligations of Estonia to increase its defence expenditures will also be fulfilled.
According to Prime Minister Ansip, the growth of investments into education is one of the fastest in the budget for 2009. Our wealth does not lie in great masses or beneath the ground, our wealth lies in our brains, said Ansip, according to whom there must be close co-operation between state authorities, scientific institutions, and entrepreneurs. Young families can be at ease, as the payment of the parental benefit will continue as before. Every new citizen of the world is very much awaited in our country, said the head of the government when speaking to the members of the Riigikogu. Pensioners also do not need to worry. This year, the state will pay more for pensions than is received from the social tax. It involves a large amount of additional funds for which painful cuts had to be made, but I still do not doubt the correctness of this choice, said Ansip.
Next year, Estonia will spend 1.9 per cent of GDP on national defence, which, according to the Prime Minister, is a significant message both domestically and outside Estonia. The increase in the defensive capacity of the Estonian state and co-operation with NATO allies is one of the priorities of this government, said Ansip.
The government managed to keep the budget in balance without using the reserves or increasing taxes, said Prime Minister Andrus Ansip. According to him, the freezing of the wages of higher public officials, a decrease in operating expenses, and the number of state officials are some of the first examples of the cutting of expenses, which the government wishes to implement next year.
The most painful decision of the budget negotiations was definitely the stopping of the income tax reform for one year, said Prime Minister Ansip. According to Ansip, in Estonia the labour force is still extremely highly taxed, which curbs our competitiveness and decreases the motivation of working people to try harder. I do not doubt for a second that we must decisively work towards lowering the income tax from 26 per cent down to 18 per cent, said Ansip.
Union of National Minorities Celebrates 20th Anniversary
27 September - The Union of National Minorities of Estonia (ERU) will mark its 20th anniversary on 28 September.
The association dates back to 24 September 1988, when the first forum of national minorities took place and representatives of various ethnic groups living in Estonia decided to support the Estonians' struggle for independent statehood.
After Estonia regained independence in 1991, the ERU opted for supporting integration as its main line of activity. The primary goal of the alliance is to represent ethnic minorities at the state and local self-government levels, protect their ethnic and cultural identity, and develop co-operation between different nationalities. At the ERU's initiative, the parliament passed a law on cultural autonomy in 1993, and the ethnic minorities' roundtable in the president's office was set up.
Annual forums of Estonian national minorities in September are the most visible part of the union's activity. Each community sends 10 delegates to the forum, which makes it a sort of a representative body of ethnic groups. The 20th forum of the ERU was held at the National Library in Tallinn on Sunday.
The ERU became a member of the Federal Union of European Nationalities in 2001.
The union is funded from the budgets of the Estonian state and the City of Tallinn, as well as through the integration foundation.
The ERU sees development of national minorities' co-operation in information exchanges and culture, seeking support for Sunday schools and active participation in devising global ethnic minority projects as key areas of its future work.
The organisation is currently headed by honorary president Timur Seifullen.
DEFENCE NEWS
Draft Act for Extension of Iraq Mission Sent to Riigikogu
29 September - The Ministry of Defence has sent a draft of a resolution to extend the participation of the Estonian Defence Forces in Iraq operations until the end of 2009 to the Riigikogu for approval.
According to the draft, Estonia would continue to participate next year in the Iraq mission with an infantry platoon and with two to three staff officers in the NATO Training Mission - Iraq.
The government of Iraq will officially address Estonia in the near future to request its continued participation in the Iraqi mission. Discussion concerning the draft resolution for extending the mandate will be continued once the official address from the government of Iraq has been received.
According to Minister of Defence Jaak Aaviksoo, Estonia's continued presence in Iraq would be a sign of our foreign political reliability, and the wish of the government of Iraq to see Estonia in Iraq in the coming year serves to prove the professionalism and reliability of our defence force members.
The security situation in Iraq has improved remarkably over the last year and Estonia looks forward to completing the Iraq mission; however, this will be decided once it is clear when the Estonian Defence Force members can transfer their area of responsibility to the Iraq Security Forces, Mr. Aaviksoo said.
In 2009, the legal bases of the Iraq mission will also change. Unlike previous years, the government of Iraq is not intending to request a mandate for the coalition forces from the UN Security Council under Chapter VII of the UN Charter. Instead, Iraq plans to sign Status of Forces Agreements (SOFA) with the troops of the states that will maintain their presence in the coalition, while the government of Iraq will ask the contributing states to employ their armed forces to ensure security in Iraq. As provided by international law, the request of the government of Iraq also grants the Estonian Defence Forces a legal basis for their presence in Iraq.
Seminar Focuses on High-Tech Solutions for Baltic Defence Forces
26 September - Minister of Defence Jaak Aaviksoo and his Latvian colleague Vinets Veldre participated in an international seminar in Tartu within the framework of the Baltic Defence Technology Exhibition. Representatives from Finland, Sweden, Norway, and Denmark, as well as NATO and the European Defence Agency, introduced their defence technology development traits alongside the Baltic states.
In the opening speech of the seminar, the Minister of Defence stated with appreciation that both companies and universities can offer effective and functional solutions to the challenges that our Defence Forces are facing. High-tech solutions are of great help, especially in international operations. Events like this seminar will provide suitable conditions for developing co-operation in the spheres of defence technology in the future, confirmed Aaviksoo, who also stated that joint ventures that focus on defence technology and bring together scientists, entrepreneurs, and the general public could take place in the Baltic states on a regular basis.
The minister of defence highly praised the goal of the exhibition, which was to introduce defence technology achievements to the general public. The initiative of introducing the complicated yet exciting world of defence technology is really remarkable, as the general public would otherwise remain oblivious to this sphere, Minister of Defence Aaviksoo said. The Baltic Defence Technology Exhibition, which took place this week in Tartu within the framework of the European Science & Technology Week, is the first public event in the Baltic states that has introduced the technological and scientific aspects of the defence sphere to the general public and has had such a large number of participants. The event was organised in co-operation with the Science Centre AHHAA. At the exhibition, more than 30 enterprises and research teams from Estonia, Latvia and Lithuania exhibited recently introduced high-tech applications in the sphere of defence technology that are based on the results of research and development projects.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
Visitors to Estonia Make Up 0.4 Pct of Tourists in Europe
26 September - As many as 1.9 million foreign tourists stayed overnight in Estonia last year, making up 0.4 percent of the overall number of tourists who visited European countries during the 12-month period, Statistics Estonia said.
According to figures available from the UN World Tourism Organisation, 903 million foreign tourists that stayed overnight travelled in the world in 2007, which is 7 percent more than a year ago.
More than half of these tourists visited European countries. Compared to the preceding year, 5 percent more tourists visited European countries, but 2 percent fewer tourists came to Estonia.
In 2007, Estonia received 1.9 million foreign tourists who made an overnight stay, which corresponds to 1.4 foreign tourists per resident. The majority of clients of accommodation establishments came from Finland. Finns accounted for more than half of the foreign tourists who stayed at accommodation establishments in Estonia.
A decrease in the number of tourists from Finland was the main reason for the decline in the total number of foreign tourists visiting Estonia last year.
More than half of the tourists interviewed for the survey said they came to the country on a holiday trip. Seven percent came on a shopping trip, 12 percent were visiting relatives or acquaintances, and the rest had various other reasons for visiting Estonia.
Primarily tourists from more distant countries, such as Italy, the United States, Canada, Germany, and the United Kingdom, described their visit to Estonia as a holiday trip. The biggest cross-border shoppers were visitors from Finland.
A separate survey by Statistics Estonia revealed that in 2007, every other Estonian resident made at least one trip abroad lasting for more than one day. According to the data of the survey, Estonian residents of ages 15-74 made 677,000 overnight trips to foreign countries last year.
With Finland in first place among trip destinations for Estonian residents, the other popular destinations for holiday trips included Egypt, Spain, Turkey, Greece and Italy.
Enterprise Estonia to get Increased EU Support for 2009 Budget
26 September - The budget of Enterprise Estonia next year will be 1.095 billion kroons (EUR 70 mln), according to the state budget bill endorsed by the government.
The share of EU funds in the budget will be 910 million kroons and that of the Estonian state 107 million kroons.
Year on year, the share of EU support is set to grow by 24 percent and that of Estonia's own financing to decrease by 43 percent.
The Kredex fund is set to operate with a budget of 345 million kroons next year, of which EU support will make up 285 million kroons. The share of EU support will also grow in Kredex's case, and the Estonian funding will decrease.
This year, Enterprise Estonia has a budget of 923 million kroons and Kredex of 319 million kroons.
Enterprise Estonia is one of the institutions responsible for the implementation of EU structural funds in Estonia, being the primary provider of support and development programs geared toward businesses.
The Credit and Export Guarantee Fund (KredEx) was established with the aim of improving the financing of small enterprises in Estonia, reducing export-related credit risks, enabling people to build or renovate their homes, and promoting energy efficiency in Estonia.
July Export of Goods Up 12 Pct on Year
25 September - The value of Estonia's exports at current prices amounted to 11.1 billion kroons (EUR 709 mln) in July, which is 12 percent more than in July 2007. The annual growth rate of exports in July was one of the biggest such rates this year, second only to the 18 percent growth posted for April.
Compared to July 2007, nominal exports of goods increased by 1.2 billion kroons, mainly as a result of an increase in the export of fertilisers and electrical equipment.
Since the rate of growth of export has exceeded the growth rate of import in each month so far this year, the foreign trade balance has been improving. The size of the foreign trade deficit was 4 billion kroons, which is nearly as high as in July 2007.
The value of goods imported to Estonia in July was 15.1 billion kroons, exceeding the figure for July last year by 9 percent. An increase in the import of fuels by 1.1 billion kroons was the main factor behind the significant increase in imports.
In July, the share of EU countries in exports was 69 percent and that of CIS countries 16 percent, compared with respectively 68 percent and 11 percent in July 2007.
The main countries of destination for exports were Finland, Russia and Sweden. The biggest increase -- by 0.6 billion kroons -- was recorded in the export of goods to Russia.
In the import of goods, the share of EU countries was 81 percent and that of CIS countries 11 percent, compared with 78 percent and 12 percent in July 2007, respectively. Imports from EU countries increased by 1.4 billion kroons or 13 percent, whereas imports from CIS countries decreased slightly.
A. Le Coq Beverage Group Doubled Profits in 2007
26 September - A. Le Coq Group, the owner of beverage holdings in the all three Baltic states, earned a net profit of roughly 250 million kroons (EUR 16 mln) in 2007, almost double the figure for 2006.
A. Le Coq Group owned the Tartu Õlletehas beverage house in Estonia, Cesu Alus in Latvia, and Ragutis in Lithuania during 2007.
At the beginning of this year, A. Le Coq Group sold the Latvian and Lithuanian subsidiaries to its Finnish parent group Olvi.
A. Le Coq Group is about to merge with A. Le Coq, the Estonian holding, this year. As a result, the holding company will be deleted from the register.
A. Le Coq said in its report that its breweries in all the three Baltic countries expect a boost in both sales and profit in 2008.
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