Estonian Review: 3-9 September, 2008
11.09.2008
Paet: Co-operation between Europe and USA More Important than Ever
5 September - Foreign Minister Urmas Paet participated in the Gymnich informal meeting of European Union foreign ministers in Avignon, France from 5-6 September.
The foreign policy leaders discussed the future of relations between the European Union and the United States. Foreign Minister Paet stated that intensive and effective co-operation between the European Union and the USA is the cornerstone of European and worldwide security. Looking at Russia's aggression against Georgia, it is clear that co-operation between Europe and the USA has become even more important, noted Foreign Minister Paet. He added that together we must find an effective way to influence Russia to act responsibly. Intense co-operation must also be done with the USA to support nations in Eastern Europe, said the Estonian foreign minister.
Co-operation opportunities with the Middle East were also discussed. Foreign Minister Paet stated that in order to build up the police force in Afghanistan, co-operation must happen between the European Union police mission (EUPOL) and the corresponding individuals from the USA. Since the stability of Afghanistan and Pakistan's border areas and the resulting security situation are inevitably tied, the efforts of both of those nations plus the European Union and the United States must be integrated and equal, Paet added.
High Representative for the EU's Common Foreign and Security Policy Javier Solana introduced ideas for improving the EU's security strategy to the foreign ministers. In talking about European security strategy, the foreign ministers agreed that in the light of the events in Georgia, the EU must update its assessments to reflect changed circumstances. The strategy must give answers as to how to avoid potential conflicts, stated Urmas Paet. More attention must be paid to many important matters: unresolved regional conflicts in the neighbourhood around the EU, energy and cyber security, and making Europe-USA co-operation more effective, while also advancing EU-NATO co-operation for resolving security issues.
Russian Forces Vacating Georgia is EU's Goal
6 September - On the second day of the Gymnich meeting the foreign ministers confirmed the European Union's strong political and economic support of Georgia. They emphasised once more that Russia must respect Georgia's territorial integrity and return their soldiers to their pre-7 August positions without delay, as they agreed to do in the 6-point cease-fire agreement. The European Union should not continue with the visa dialogue or negotiations for the new partnership and co-operation agreement with Russia before these requirements are met, said Foreign Minister Urmas Paet.
According to Paet, an EU observation mission should be sent to Georgia as soon as possible.
For a foreign policy plan, the EU urgently needs to think through its future relations with Russia. Russia's behaviour demonstrates a change in the paradigm, and the European Union must adapt its policies accordingly, Paet stated.
Paet also emphasised that the peacekeeping format in Georgia must certainly change. As one party in the conflict, Russia may no longer participate in peacekeeping in Georgia, stressed Foreign Minister Paet, The European Union must discuss opportunities for sending a peacekeeping mission to Georgia.
EU nations must continue to give aid to Georgia, since the need for humanitarian aid is still great. An international conference of donors to Georgia should take place as soon as possible, said Paet. The European Union should also move quickly towards concluding a visa facilitation agreement and a comprehensive free trade agreement with Georgia, he added.
Foreign Minister Urmas Paet also stressed the importance of the upcoming EU-Ukraine summit. It is extremely important that the European Union take the changed situation into account and confirm Ukraine's European Union membership perspective, Paet added. The EU foreign ministers emphasised that at the moment, it is more important than ever before that the EU strengthens its ties with Eastern European nations.
FOREIGN NEWS
Prime Minister Ansip Confirms Estonia's Support of Croatia
9 September - Prime Minister Andrus Ansip confirmed to Ivo Sanader, the Prime Minister of Croatia, that Estonia supports Croatia's integration with the European Union and NATO. According to Prime Minister Ansip during his visit to Zagreb, the progress of Croatia on the way towards NATO and the European Union has been remarkable, and Estonia supports the course of reforms in Croatia. Estonia feels the further expansion of the European Union is possible and necessary, even without the Lisbon Treaty.
Estonia has consistently supported expansion. We think that the promises made to Croatia must be kept and the expansion process continued, Ansip stated. According to him, the stability and development of the Western Balkans is important for Estonia, and continuing Euro-Atlantic co-operation will definitely contribute to ensuring it.
Prime Minister Ansip also stressed the responsibility of accession have in the success of the expansion of these organisations. For meeting European Union accession criteria, the commitment of the country itself and well-done homework are the most important factors, said Ansip. He said that a lot of work must be done thoroughly for accession. The European Union does not make any concessions, Ansip assured.
According to Ansip, the accession process of Croatia affects all the other countries that are already moving towards the European Union or still dreaming about it. The faster and smoother the accession of Croatia, which is at the front of the queue, the faster the accession of other existing and potential accession countries, he added.
In addition, the potential termination of the OSCE mission in Croatia was discussed. Ansip gave assurance that, in Estonia's opinion, the time is right to terminate the OSCE mission in Croatia. Estonia has previous experience in the termination of an OSCE mission, and is ready to share it.
Croatia received an invitation to join NATO at the Bucharest summit held in April 2008; Croatia wishes to conclude accession negotiations with the European Union at the end of 2009.
Foreign Ministers See No Military Threat to Estonia, Norway
9 September - The foreign ministers of Estonia and Norway perceive no military threat to their countries, although they admit that the European security situation has changed since the Georgia crisis.
The Estonian situation differs from Georgia's, Estonian Foreign Minister Urmas Paet said in a joint press conference in Tallinn with Norwegian Foreign Minister Jonas Gahr Støre.
"Estonia is a member of the European Union and NATO, and there are no frozen conflicts in Estonia like those in Georgia. I don't think we should raise the stress level of the Estonian society with talk about military threat," the minister said.
He confirmed that the North Atlantic alliance is as capable today as it's ever been, and that Article 5 of the North Atlantic Treaty, which deals with collective defence, remains in force.
The Norwegian foreign minister said the European security situation has changed since the conflict in Georgia, and the fact that armed forces were used in Europe is extremely negative.
Military threat to Norway has not increased since the Georgian events because compared with many other neighbours of Russia, Norway is in a different geopolitical situation and has a different historical experience, the minister said. Norway and Russia have been living in peace as neighbours for a thousand years, he observed.
However, Støre emphasised that Norway's historical experience does not mean the new security situation should not be analysed and discussed with partners.
Paet stated that Georgia and Ukraine should have been given NATO Membership Action Plans (MAP) already at the Bucharest summit in spring and voiced the hope the two countries will get roadmaps to membership in December.
After their press conference, Paet and Støre headed to the south-western seaside resort of Pärnu for a two-day meeting of the Nordic and Baltic foreign ministers. Developments in Georgia and the changed situation after Russia's aggression will be in the focus of the meeting, Paet said.
Foreign Minister Paet Spoke with Georgian Colleague
7 September - Estonian Foreign Minister Urmas Paet discussed the most recent developments in Georgia with his Georgian colleague Eka Tkešelašvili. The ministers spoke over the phone on 6 September.
Georgian Foreign Minister Eka Tkešelašvili stated that it is extremely important for the Russian forces to vacate Georgia without delay and for Russia to begin fulfilling the cease-fire agreement.
Foreign Minister Urmas Paet gave his Georgian colleague an overview of the European Union's plan to send humanitarian aid to Georgia. Urmas Paet also stated that it is very important that international observers and investigators be granted access to Georgian territory, so that they can have a first-hand look at what has occurred and all the present circumstances.
The Estonian, Latvian and Swedish ambassadors in Tbilisi and the Lithuanian deputy foreign minister attempted to visit an area in the buffer zone under the control of Russian forces in order to evaluate the humanitarian situation, distribute aid, and gain information about the general situation. Russian soldiers hindered the movement of the ambassadors and deputy foreign minister and prevented the sharing of humanitarian aid in the areas of Variani and Karalet.
Estonian Government Allocates 64,000 EUR for Georgian Students and Youths
4 September - The Estonian government is giving one million kroons (EUR 64,000) to support Georgian students, universities, vocational education, and youth work.
The government is giving 174,000 kroons to help finance the studies of six students from the University of Tbilisi at Tartu University for one semester.
Six students from the University of Tbilisi have already started their studies in Tartu. The additional money provided by the government allows the university to admit six more students, meaning 12 Georgian students will be studying in Tartu under the arrangement this semester. The students are provided with free admission to the university, free accommodation in the dormitories, and a monthly allowance of up to 3,000 kroons (EUR 196).
Tartu University and the University of Tbilisi signed an agreement on student and teacher exchanges in 2005.
Tallinn University will get 97,500 kroons to produce publications on post-traumatic behaviour. The university will provide students and specialists from Georgia training in post-traumatic behaviour, so that they can help young people and children who witnessed the calamities of war.
The Georgian Ministry of Education will get 200,000 kroons to help cover expenses related to the University of Gori, which has been destroyed in the war.
A project in advanced training in the management of vocational schools and teaching, under which seven Estonian specialists will travel to Georgia, will get 227,500 kroons, whereas 301,000 kroons will be used to organise a summer camp for Georgian children of ages 12-15 at Kloogarand in northwestern Estonia next summer.
Paet Lauds Serbia for Ratifying SAA Pact with EU
7 September - Foreign Minister Urmas Paet expressed his satisfaction over the Serbian Parliament's decision to ratify the Stabilisation and Association Agreement (SAA) with the European Union.
The ratification of the agreement and multi-faceted co-operation with the International Criminal Tribunal for the Former Yugoslavia are very positive, and an important step for Serbia towards European Union membership, emphasised Foreign Minister Paet. It is a definite sign of Serbia's desire to strengthen relations with the European Union, he added.
The foreign minister added that in order for the SAA to come into effect, it must also be ratified by the EU member states. Serbia and the European Union signed the Stabilisation and Association Agreement this year at the end of April.
President Ilves Encourages Innovation and a Change in Outlook
8 September - President Toomas Hendrik Ilves opened the international Baltic Dynamics Conference in Tartu, which under the slogan Innovation - The Key from Slowdown to Growth, is focusing on the topics of innovation, enterprise, and competitiveness.
In his opening remarks, President Ilves said that today all three Baltic countries stand at the threshold of a change in their economic paradigm, where the engine of rapid growth and competitiveness-cheap labour-has faded, and our economies can only develop further by creating added value for products and services. Innovation, he said, is the natural key for steering the economy from a downturn to the course of new growth.
We must clearly change our attitudes as well as our investment priorities, the Head of State said. The question is not only in our science, information technology or economy. The question is in education and maybe also the mentality of the society generally.
In his presentation, the Estonian head of state highlighted three key phrases which are not often named when speaking about innovation: the freedom of movement, education in the broadest sense, and quality of life. According to the president, Estonia must compete with countries that are better off then we are and countries that have more favourable climates. We must primarily deal with these three topics in order to attract bright people to Estonia, the head of state asserted. And there is one more important nuance related to them-European co-operation, the president added. I mean regional co-operation between countries around the Baltic Sea as well as further afield. I really hope that you will turn your attention to all aspects of co-operation.
Estonian and US Defence Leaders Discuss Progress in Iraq
9 September - Minister of Defence Jaak Aaviksoo spoke with US Secretary of Defence Robert Gates on the phone about the progress made by the coalition forces and Iraqi Security Forces in improving the security situation in Iraq.
Mr. Gates also forwarded the request of the government of Iraq for Estonia to continue participation in the ranks of the diminishing coalition forces in Iraq.
The extraordinary and unofficial meeting of the NATO defence ministers in London in mid-September and possible ways for strengthening NATO collective defence were also discussed. The Minister of Defence stressed the importance of the high-level NATO and Ukraine consultations to take place in Tallinn in November, in the context of the current security situation.
Estonian Mine Experts Depart for Georgia
6 September - Five Estonian explosive ordnance disposal (EOD) specialists departed for Georgia on a humanitarian mission to help locate and disarm unexploded explosive devices in the conflict areas.
The team, which is being led by Margus Kurvits, chief of the EOD Centre at the Estonian Rescue Board, is flying to Georgia via Prague. The exact area where the Estonians will work will become known once they've arrived in Georgia.
"Essentially they will be doing the same thing they do in Estonia, that is, searching for and rendering harmless explosive devices left behind from the war," spokesperson Beata Perens said.
Under current plans the team will stay in Georgia for three weeks. The mission organized in collaboration with the Estonian Foreign Ministry costs about 300,000 kroons (EUR 19,200), which will be taken from the ten million kroons earmarked by the government as aid for Georgia in mid-August.
Estonia so far has used the money to finance two shipments of humanitarian aid to Georgia and has made a transfer in the amount of one million kroons to UNICEF as assistance for South Ossetian children. Estonia is also providing expert assistance to Georgia. An Estonian crisis counselor started working at the UNICEF office in Tbilisi last week, providing advice to social workers, teachers and other people working with children from the conflict area. Three more Estonian experts in the same field will depart for Georgia soon.
EU Battles Groups Important for a Strong and Influential Europe
4 September - The European Union battle groups have a significant role to play in making Europe strong in military terms, says Estonian Defence Minister Jaak Aaviksoo. Aaviksoo and visiting chairman of the EU Military Committee Gen. Henri Bentegeat discussed possible developments in European security and defence policy in connection with the events in Georgia.
Aaviksoo expressed the hope that the EU will be able together with other parties to contribute to a rapid and sensible solution of the conflict. The Estonian minister and the chairman of the EU Military Committee also spoke about the future of the EU battle groups and their possible deployment.
"A militarily strong and influential Europe is in our best interest, and the EU battle groups are a part of that," he said.
The EU battle groups are tactical rapid response units of about 1,500 personnel that must be ready for deployment to crisis areas up to 6,000 kilometers from Brussels within 15 days of a unanimous deployment decision of EU members.
The European Union Military Committee (EUMC) is the highest military body set up within the EU. It is composed of the chiefs of defence of the member states, who are regularly represented by their permanent military representatives. The EUMC provides the EU Political and Security Committee (PSC) with advice and recommendations on all military matters within the EU, and heads the EU's military headquarters.
Minister of Defence: Cyber Threats Are Here to Stay
4 September - Minister of Defence Jaak Aaviksoo emphasised the necessity of comprehensive cyber security at the opening of an international cyber security forum in Tallinn. The forum brought together IT experts, politicians, and entrepreneurs from Estonia, Europe, and the United States of America.
Cyber-threats are here to stay; they are not a temporary phenomenon, commented the Minister of Defence in his keynote address. In the words of Mr. Aaviksoo, cyber security requires constant attention, including international co-operation, as these activities take place in a borderless space. Today, many people spend most of the day in cyber-space; however, the risks resulting from cyber space do not merely create a problem for the single user, but are fundamental wide-spread security issues.
The forum has been organised by the Computing Technology Industry Association (COMPTIA) together with the American Chamber of Commerce in Estonia. Members of the Estonian Ministry of Defence participated in the panel discussion on threats and challenges in cyber space by addressing resultant risks from cyber space in the light of recent cyber attacks.
US to Start Patrolling Baltic Airspace in October
9 September - The United States will take over the Baltic airspace patrolling mission from Germany in October, USAF Commander in Europe Roger Brady said.
Germany began to police the Baltic skies at the end of June. NATO fighters based in the Zokniai air base in Lithuania have been guarding Baltic skies since Estonia, Latvia and Lithuania joined the alliance in 2004 because the three countries do not have aircraft suitable for the patrolling missions.
Since then, missions have been performed by Belgian, British, Danish, Dutch, French, German, Norwegian, Polish, Romanian, Spanish, Turkish, and US airmen.
According to current plans, the alliance will continue patrolling the Baltic airspace until 2011. However, Baltic defence commanders have asked NATO to extend the mission until 2018.
Currency Rates in Kroons (Bank of Estonia)
Estonian Government Makes Taxpaying Simpler
4 September - The Estonian government endorsed a bill on amendments to the Taxation Act, which will simplify the procedure of the payment of taxes and settlements. One of the main amendments is that instead of the present nearly 100 different types of prepayment accounts, one prepayment account will be taken into use per each taxpayer and all that person's settlements will be made from that account.
The new system will make it possible to make only one payment to meet all financial obligations proceeding from the law.
Simultaneously with the Taxation Act, the government also amended the Value-Added Tax Act, the Social Tax Act, the Income Tax Act and the Unemployment Insurance Act.
According to plans, the bill will come into effect at the beginning of next year.
Estonians Work Two Hours More Per Week than Western Europeans
4 September - The average agreed weekly working time in Estonia is about two hours longer than in the so-called old EU member states, it appears from a study by the European Foundation for the Improvement of Living and Working Conditions (Eurofound).
The average in the 15 old member states was 37.9 hours in 2007, unchanged from 2006, compared with 39.6 hours in the 12 more recent member states. The gap between the two is 1.7 hours or 4.5 percent. The agreed length of the working week in Estonia is 40 hours. The average collectively agreed weekly working time in the European Union in 2007 stood at 38.6 hours, according to the annual update of the working time development from Eurofound's European Industrial Relations Observatory (EIRO).
The average collectively agreed normal working time covers some three-quarters of the labour force in Europe.
From 1999-2007, the average agreed normal weekly hours in the former EU15 countries and Norway fell only slightly from 38.6 to 37.8, a reduction of 2.1 percent. Reductions of an hour or more have occurred in Luxembourg (1.0 hours), the UK (1.1 hours), Portugal (1.2 hours), Sweden (2.5 hours) and, most notably (driven by legislation), France (4.0 hours).
In addition to the agreed working time, the study revealed that the actual number of hours worked per week in the final quarter of 2007 was biggest in Romania (41.7 hours), Bulgaria (41.7 hours) and the UK (41.4 hours).
Working the least were employees in France (37.7 hours), Italy (38.4 hours) and Denmark (38.6 hours).
Employees in Estonia worked an average of 40.7 hours a week.
Liviko to Bring Latvian, Lithuanian Subsidiaries Under its Name
4 September - The Estonian alcohol producer and importer AS Liviko will bring the Lithuanian and Latvian alcohol wholesale companies it acquired last October under the Liviko trademark.
Lithuania's UAB Lion Gerimai will be renamed Liviko later this month and the third largest Latvian alcohol wholesale company, L.I.O.N. & Ko, has already become Lion Liviko.
Liviko CEO Janek Kalvi said the company was planning to significantly increase its alcohol export to Latvia and Lithuania.
The sales turnover of Liviko's subsidiaries in H1 grew by 27 percent in Latvia and 40 percent in Lithuania compared with the same period last year. In all the company employs 224 people in Estonia, 130 in Latvia and 78 in Lithuania.
In 2007 Liviko's audited and consolidated sales proceeds amounted to nearly 1.4 billion kroons (EUR89.5) and the net profit 50 million kroons, increasing by respectively 42 and 6 percent on year.
Over a Million People Use Estonian Online Banking Services
8 September - Commercial banks in Estonia had 1,568,897 users of their internet banking services at the end of August, which is 6,532 users more than at the end of July.
The number of customers of telephone banking grew by 9,374 to 628,337 during the month.
Hansapank's internet bank had 806,206 registered users at the end of August, marking an increase of 2,064 month on month.
SEB Pank's internet bank U-Net had 481,032 users and its corporate online bank U-Net Business had 47,173 users. In comparison with July, the figures increased by 1,793 and 498, respectively.
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