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Estonian Review: 28 May - 3 June, 2008

06.06.2008

FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS



FOREIGN NEWS

Ansip: Views of Estonia and France on Main Issues of European Union Similar

May 30
- At the meeting on between Prime Minister Andrus Ansip and Prime Minister of the Republic of France François Fillon, topics related to the French Presidency of the European Union were discussed. The central issue was energy policy, and it was noted that the views of the two countries were similar in this aspect.
According to Prime Minister Ansip, Estonia supports the energy and climate policy goals of the European Union, but the decisions on the subject are closely related to energy security for Estonia.
In his words, in relation to the fulfilment of the environmental requirements, the need to set limits on electricity imports from third countries needs serious discussion.
The Prime Minister explained that the enforcement of carbon dioxide quotas is one of the solutions for fulfilling the environmental requirements in the European Union. On the other hand, Estonia is currently still too dependent on oil shale energy and oil shale will remain the guarantee of independence in electricity production for a while. The requirements of the European Union regarding the environment affect the competitiveness of oil shale energy if the Union allows the importing of cheap electricity from third countries, which has not been produced in conformity with the environmental requirements.
Prime Minister Fillon confirmed similar views. “The European Union must make exact plans for diversifying energy sources and establishing links between Member States,” he said. According to him, a serious discussion is being held in the Union over whether energy related competition should be guaranteed by separating production and distribution. According to the Prime Ministers, the discussions on these topics will continue, and they are sure that the European Union can form a common viewpoint by 2009. Prime Minister Ansip wished France luck with the Presidency and stated that both Estonia and France hope for a strong and active Union. “The success of the French Presidency is the success of the European Union, it is our common success” Ansip said.
France will hold the European Union Presidency for the next half-year.


Estonia Aids Iraqi Refugees with 1 Million Kroons

May 29
- Estonian Foreign Minister Urmas Paet participated in the Iraq Compact Annual Review Conference taking place in Stockholm. The goal of the conference is to co-ordinate the aid given to Iraq and also to determine areas that will require aid in the future.
Foreign Minister Urmas Paet confirmed at the conference that Estonia will be donating one million kroons (about 63,900 EUR) though the United Nations High Commissioner for Refugees (UNHCR) to improve the situation for Iraqi refugees and displaced persons within the country.
“The poor security situation has forced over two million people to leave their homes,” Paet emphasised. The foreign minister added that “if we can help alleviate the situation for Iraqi refugees, then it will also improve their chances of returning to a normal way of life.”
In talking about the continuation of programmes for building up Iraq, Paet noted that increasing the contribution of the European Union is important for democratising the social system and supporting economic reforms. “International support must ensure the success of Iraq's peace and rebuilding process and prevent a regional catastrophe,” Paet emphasised.
Estonia has previously supported the alleviation of Iraq's humanitarian crisis through the International Committee of the Red Cross (ICRC), the UN Office for the Co-ordination of Human Affairs (OCHA), and the UN Children's Fun (UNICEF).
In May 2007, the International Compact for Iraq was signed in Sharm el-Sheikh. The goal of the co-operation between the Iraqi government, the UN, and the EU is to support national programmes to build up Iraq as well as the implementation of necessary reforms.
The organisers of the conference are the UN in co-operation with the governments of Sweden and Iraq.


Paet: Estonia Wants Effective Foreign Service for European Union

Jun 3
- Estonian Foreign Minister Urmas Paet met with French Minister of Foreign and European Affairs Bernard Kouchner in Paris.
The primary topics of discussion were the status of the ratification of the Lisbon Treaty and the future foreign service of the European Union.
According to Foreign Minister Urmas Paet, the Lisbon Treaty coming into effect will make many functions of the European Union more clear and effective. For example, Paet stated that modernising the economy and spreading new technology will help achieve the goals of a common European Union energy policy. “At the same time, we cannot forget energy security and the possible risks of transferring the industry to third countries,” the foreign minister said. Paet said that it is essential to make sure there is fair competition in the European Union internal market and that all environmental standards are followed.
In talking about the European Union foreign service, Paet stated that it is important that the departments of the European Commission as well as all member states contribute to the European Union's reformed foreign service.
The foreign ministers also dedicated some time to talking about the Lisbon Treaty, which is currently in the ratification process. They expressed hope that all the nations in which the process is not yet complete will approve the treaty so that it may come into effect on 1 January 2009. The Irish foreign minister gave an overview of the pre-referendum discussions that have taken place in Ireland.
The foreign ministers of Italy, Ireland, Portugal, Denmark, Hungary, Lithuania, Romania, Bulgaria, and Cyprus were also present in the meeting.


Estonian President Thanks Canada for Years-Long Assistance and Support

Jun 3
- At a joint dinner of representatives of Baltic communities, of the Canadian government and the parliament in the Canadian Parliament House, Estonian President Toomas Hendrik Ilves thanked Canada for its years-long assistance, support and understanding.
"I thank the Canadian state, which never recognized the annexation and occupation of the Baltic States before and after World War II," the president said. "This consistent stance added strength to our small nations to stand for our rights and to once again achieve freedom for our countries in the last decade of the 20th century."
Ilves thanked Canada for the hospitality with which tens of thousands of Estonian, Latvian and Lithuanian war fugitives could start new lives in Canada and preserve their language and culture in that country.
As the guest of honour at the dinner the president spoke at length about common values that had made Canada and Estonia allies in bringing peace and stability to areas of crisis of the world.
"As member countries on NATO we will together help achieve stability and development in faraway Afghanistan," the Estonian president said. "We have lost some of our best men and women as dead and wounded there. We are doing it because we appreciate above all the main values -- liberty, freedom of expression, the law-governed state and respect of human rights."
Ilves said giving up these values and their protection in case of other people needing help would mean turning our backs to our past and the former aspirations of our own peoples.
The president's working visit to Canada ended by the laying of a wreath at the Unknown Soldier's Grave in central Ottawa upon which the president met with speakers of both the houses of the Canadian parliament.


Ansip Discusses Estonian Investment Climate with British-Indian Businessmen

May 28
- Prime Minister Andrus Ansip met with British-Indian businessmen and investors, with whom the Estonian investment environment and the cost-effectiveness of long-term investments were discussed. The British-Indian entrepreneurs found that Estonia is attractive for foreign investments in the long run as well.
Andrus Ansip mainly introduced to the British-Indian businessmen the liberal economic model that has brought success to Estonia, as well as the simple tax system and IT solutions. The Prime Minister confirmed that Estonia will continue with the balanced budget policy and the fiscal policy principles that have been beneficial for the development of the country. The Prime Minister also noted that the Estonian economy needs structural changes. He introduced the Estonian investments into research and development to the businessmen as well.
The British-Indian businessmen acknowledged that Estonia has turned from a country that earns fast profits into a country to which investments are made with long-term considerations. Taking the liberal economic environment of Estonia, the tax system, and the speed of adapting to changes and development into consideration, the businessmen plan to take steps to turn Tallinn into the financial centre of the Nordic and the Baltic countries. They stated that in the long term, the intellectual abilities of people are ever more appreciated when investing.
The Prime Minister said that Estonia will apply all means to have the stability and trustworthiness of the local business environment guaranteed in the future as well with transparent regulations, clear ownership relations and a simple tax system. Ansip also noted that Estonia is making the labour market regulations more flexible, which is also important in attracting foreign investments.


Famous Historian Antony Beevor Receives Estonian State Decoration

Jun 2
- Estonian Ambassador to the United Kingdom Margus Laidre presented historian and professor Antony James Beevor with the Order of the Cross of St. Mary's Land 3rd Class at the Estonian Embassy in London.
The high Estonian state decoration was bestowed on the famous historian on the eve of Estonia's 90th Anniversary in February by Estonian President Toomas Hendrik Ilves.
Ambassador Laidre said that this honorary award recognises Antony Beevor's great work and comprehensive research on the Second World War and the 20th century in general. “Antony Beevor has shown with his objective approach that even winners' history has dark spots, that not nearly all want to see publicised,” he noted.
Accepting the award, Antony Beevor said that he is deeply touched and also very grateful to the President and people of Estonia for such a great honour.
His most well-known books and popular histories on the Second World War, Stalingrad and Berlin - The Downfall 1945, have also been translated into Estonian. The Mystery of Olga Chekhova is the last book by Beevor translated into Estonian.


Albania Plans to Set up Embassy in Estonia

May 30
- The Albanian government has said it intends to open embassies in Estonia, Norway and Portugal soon.
The Balkan country at present has 46 diplomatic missions in states and international organizations around the world. There are no Albanian embassies in Estonia's neighbouring countries Finland, Latvia and Lithuania.
The Albanian ambassador to Estonia currently resides in the Polish capital Warsaw. Florent Celiuk presented his credentials to the Estonian president in February. The head of state, Toomas Hendrik Ilves, then said the opening of the Albanian diplomatic mission in Tallinn would significantly help strengthen bilateral ties.
Estonia and Albania established diplomatic relations on Jan. 1, 1992.


Conclusion of 5th Conference for Honorary Consuls

May 31
- 73 honorary consuls from 44 nations all over the world attended the 5th Conference of the Honorary Consuls of the Republic of Estonia.
When summing up the conference, the honorary consuls emphasised the necessity of holding such events. They felt that the conference offered them a chance to gather information necessary for their work and meet both Foreign Ministry employees as well as their colleagues from around the world, and to share the joys and concerns of the job.
Estonian Honorary Consul in Brazil Jüri Saukas emphasised that it was good to see Estonia's progress with his own eyes and experience its developments himself. “I'm an optimist about the future of Estonia, and the things I have seen and experienced here give me the strength and desire to remain in this position,” said Saukas.
Igor Goncearov, Estonia's honorary consul in Moldova, said, “Estonia is a beautiful and dear country, and it is a great honour to represent it. It's important to have these conferences for us honorary consuls. It's good to get information for our everyday work straight from the source.”
At a reception held by Prime Minister Andrus Ansip on Friday, May 30 Estonia Honorary Consul in the USA Jüri Treiman presented a donation from the honorary consuls for the support of disabled children.
Estonia currently has 104 honorary consuls in 50 countries. Thanks to honorary consuls, Estonian citizens all over the world have easier access to consular aid and services. Consuls are also noteworthy in their contributions to such areas as politics, economics, culture, and education.


Estonia to Join Group of Earth Observations

May 29
- The Estonian government approved accession to the Group on Earth Observations (GEO), which makes it possible for Estonia to have more extensive environmental cooperation with other countries than until the present.
Members of the group cooperate in issues pertaining to mineral resources, the environment and issues alleviating natural disasters.
Reet Talkop, monitoring adviser with the Environment Ministry's development department, said participation in the Group of Earth Observations was useful for Estonian scientists to be involved in international research and for Estonian politicians to make long-term decisions.
"GEO membership will open for our scientists' access to many important sources and systems of information, while the monitoring and remote monitoring results collected in Estonia give a significant contribution to the solution of global projects," Talkop said.
"A very important subject for Estonia, for example, is management of energy resources and cleanness of the Baltic Sea and solution of these problems is not possible without international cooperation," she added.
Already since 2005 Estonia have been taking part in the GEO European Commission working group, in which experts of the Tartu University Marine Institute and of the Environment Ministry are members.
At the present, the GEO has 72 member countries, including most member countries of the European Union and 52 international organizations.


Fight Against Nuclear Terrorism Discussed at Tallinn Meeting

Jun 2
- An international meeting in the framework of the Global Initiative to Combat Nuclear Terrorism was held in the Estonian capital Tallinn.
The working meeting brought together representatives from Estonia, the United States, Ukraine, Romania, Bulgaria, Britain, Spain, Hungary, Russia and the International Atomic Energy Agency (IAEA).
The meeting was the first such meeting held in Estonia under the international initiative and it can be viewed as a preparatory working meeting for a meeting scheduled to take place in Madrid on June 16-18.
The global initiative was announced by US President George W. Bush and then Russian President Vladimir Putin on July 15, 2006.
The initiative has been joined by 71 countries by now, including by all members of the EU. Estonia joined it on Nov. 30 last year.
Margus Kolga, director of the 1st political department at the Estonian Foreign Ministry said the question no longer is whether terrorists will get their hands on nuclear weapons but where and how they will use them.
During the meeting the groundwork was laid for a web portal where the 71 countries participating in the initiative will be able to exchange information about threats and events related to nuclear terrorism.



DEFENCE NEWS

Chamber of Cooperation in Defence Policy Meets For First Time

Jun 3
- The Estonian chamber of cooperation in defence policy, created at the initiative of Defence Minister Jaak Aaviksoo, discussed the organization of its work and future activities at its first meeting in Tallinn.
The chamber of cooperation will analyze different aspects of defence and security policy and give recommendations as regards the advancement of national defence.
Aaviksoo said the main purpose of the new body is to promote substantive and balanced discussion on security policy in the society. He added that ministries and government agencies should have more advisory bodies of this kind.
At its next meeting in the second half of September the chamber of cooperation will discuss the defence forces' development plan for the next ten-year period and long-term objectives of the Kaitseliit (Defence League) volunteer corps.
The chamber of cooperation will meet three or four times every year.
The chamber brings together experts from different backgrounds and walks of life, well-known authors and journalists dealing with topics of national security. The commander of the defence forces, Lt. Gen. Ants Laaneots, and the secretary general of the Ministry of Defence, Lauri Almann are included in its line-up by virtue of office


Soldiers from New Estonian Rotation Start Patrolling in Southern Afghanistan

May 31
- Members of the infantry company ESTCOY-6 that left Estonia on May 8 were deployed in the company's area of responsibility in Now Zad, southern Afghanistan, and started patrolling the area.
Maj. Ain Tiidrus, commander of ESTCOY-6, said the company started patrols to ensure its own security and get familiar with the situation on the ground.
"The situation in the area of responsibility is stable at the present moment, the team's readiness and morale are high," Tiidrus said.
He said the biggest challenge for the Estonian military was to readjust to the new environment and the heat characteristic of southern Afghanistan.
In addition to the Estonian infantry company, British and United States marines are also serving in Now Zad.
The aim of ESTCOY-6 is to dominate in the surroundings of Now Zad and demonstrate the presence of international peace enforcement forces. The unit's assignment is to inhibit operations of the Taliban insurgents who use the Now Zad area for north-south transit to Sangin Valley and to Musa Qala in the east.
The Estonian defence forces are taking part in the NATO-led operation in Afghanistan since 2003. Some 140 Estonian personnel are deployed in Afghanistan on what is the largest operation abroad for the Estonian military.


Estonian Armed Forces Chief Discusses Cooperation in Azerbaijan

May 30
- The commander of the Estonian defence forces, Lt. Gen. Ants Laaneots, discussed cooperation in military education and training at meetings in Azerbaijan.
The army chief visited Azerbaijan's higher military education establishments and spoke about the possibilities for working together in the fields of education and training, the General Staff here said.
To date two Azerbaijani officers have studied at the Baltic Defence College based in Estonia's second-largest city Tartu.
Laaneots also visited the Peacekeeping Battalion and was given an overview of Azerbaijan's participation in international operations in Afghanistan and Iraq.
On May 29 the general met with Defence Minister Safar Abiyev and Prime Minister Artur Rasizade.
Laaneots headed to Azerbaijan from Georgia where he attended an Independence Day military parade and a reception given by Prime Minister Vladimer Gurgenidze in Tbilisi. He also met with Defence Minister David Kezerashvili and the chief of joint staff, Col. Zaza Gogava.



DOMESTIC NEWS

State to Teach Estonian to Three-Years-Olds

May 29
- The Estonian government discussed changes in pre-school institutions' syllabi which will introduce the teaching of Estonian to non-Estonian children starting from age three.
In the current system, Estonian is taught to children from the age of five or six.
The draft regulation also lays down teachers' and parents' cooperation in supporting the children's development. Consultation about the child's development with the parent must take place at least once a year.
Implementation of the regulation requires 76.2 million kroons (EUR 4.87 mln) in the years 2008-2012. The expenses are connected with the methodical materials, study aids and teacher training.
The regulation will enter into force from September 1.



ECONOMIC NEWS

Currency Rates in Kroons
(Bank of Estonia)


Estonian Firms to Carry Out Initial Feasibility Study for Estonian-Finnish Undersea Tunnel

May 29
- A joint work group of the Tallinn and Helsinki city governments picked two Estonian companies to carry out a feasibility study for an undersea railway tunnel between Estonia and Finland.
The study will be made by ASI Consult OÜ and the NGO Estonian Institute for Futures Studies, Deputy Mayor of Tallinn Jaanus Mutli said.
"The period of time planned for the preliminary study is five weeks, thus, if we sign a contract with the joint bidders next week it should be ready in the first half of July," Mutli said.
The work group wants the preliminary study to show the impact of the undersea tunnel on regional development -- the economic structure, trade, population, general socioeconomic development and housing construction related to the movement of labour, and regional distribution of work.
The study should also identify the impact on the existing transport systems and companies, connections with the Rail Baltica link, and present passenger and cargo flows.
Mutli said the work group also wants an initial estimate of the cost of the project.
The mayors of the two Baltic capitals, Tallinn's Edgar Savisaar and Helsinki's Jussi Pajunen, signed on March 28 a protocol saying the cities attached great importance to investigating the feasibility of an undersea rail link.
Depending on the choice of the sites for the beginning and the end of the tunnel, it would be 70-85 kilometres long, of these 50-70 kilometres under the Baltic Sea.
Depending on the final decision, it would take 10-15 years for the tunnel to be completed.


Number of Persons Earning More than 1,000,000 Kroons Up by One Third

May 30
- The Estonian Tax Board said that 2,300 taxpayers declared incomes of more than one million kroons (EUR 64,000) for 2007, nearly one third more than the year before.
The Tax Board said the number of persons who earned an income of more than one million kroons grew by 565.
Incomes of more than 10 million kroons were declared by 46 and more than 100 million kroons by two persons.
Most of the people who declared incomes of more than 10 million kroons mainly earned it from the sale of property, said Hannes Udde, head of the Tax and Customs Board tax return project.
The oldest person who declared an income of more than 10 million kroons was 71 and the youngest 27 years old. The average age in this group of taxpayers was 49.
The biggest wage income and the biggest income earned abroad also crossed the ten million kroon line. Two persons declared incomes of more than 100 million kroons. In previous years the biggest income was under the 100 million kroon line.


Eesti Ehitus Wins Networks Contract in Riga

May 30
- SIA Abagars, a subsidiary of AS Aspi, which is a company in the Estonian Eesti Ehitus building group, together with other bidders won a contract for the extension of water mains and sewerage networks in the Sampeteris borough of the Latvian capital Riga.
The extension work includes laying pipes of a total of 42 kilometres and tarmacking of more than 75,000 square meters.
The total cost of the works according to the contract is 12.4 million euros. The amount of work carried out by SIA Abagars is nearly 11.9 million euros plus value-added tax. The deadline of the works is December 2009.


Number of Tax Returns Submitted Electronically Up also this Year

May 30
- Of the tax returns for 2007 filed to the Estonian Tax and Customs Board 88 percent arrived via the e-Tax Board, the number of returns filed via the Internet increasing by 7.8 percent against last year.
The total number of tax returns filed to the Tax and Customs Board was 555,484, and 491,257 of them were filed via the Internet, the Tax Board said on Friday. The number of tax returns filed via the Internet has been growing from year to year.
Nearly one fifth of the e-tax returns arrived in the Tax and Customs Board on the first day, Enriko Aav, director-general of the Tax and Customs Board said. To 96 percent of clients who filed their tax returns via the e-Tax Board and were entitled to tax returns the payments were made within five working days.





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