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Estonian Review: 2-8 April, 2008
11.04.2008
THE BUCHAREST SUMMIT
FOREIGN NEWS
DEFENCE NEWS
ECONOMIC NEWS
THE BUCHAREST SUMMIT
Expansion of the Alliance was Decided upon at NATO Summit
Apr 4 - At the NATO summit in Bucharest, a clear signal was given to Georgia and Ukraine to join the Alliance.
NATO welcomes Ukraine's and Georgia's Euro Atlantic aspirations for membership in NATO. We agreed today that these countries will become members of NATO. Both nations have made valuable contributions to Alliance operations, states the Bucharest Summit Declaration.
This means that NATO will intensively work at a high political level towards providing a membership action plan for Georgia and Ukraine. The progress of the two countries will first be evaluated in December at the meeting of the Ministers of Foreign Affairs, who were also granted the right to make the final decision.
According to Prime Minister Andrus Ansip, it is positive that a forward-looking compromise was achieved with respect to the expansion of NATO. According to Ansip, the perspective to join NATO has become a great source of motivation for many countries in Eastern Europe and the Balkans for developing statehood, conducting defence reforms and providing general security. What was decided today is a clear signal that the doors of NATO are, and will continue to be, open, said Ansip. In his words, the expansion of NATO helps to increase security, stability and democracy.
According to Urmas Paet, Minister of Foreign Affairs, Estonia welcomes inviting Croatia and Albania to join. All technical and political criteria have been fulfilled in these two countries. With respect to the joining of Macedonia, a decision in principle was taken to invite the country to join the Alliance as soon as the issue of the name of the country is solved. Membership will be palpable after the resolution of this issue of dispute, and hopefully an agreement will be reached soon, said Paet.
For the first time, the topic of cyber defence was raised at the head of state level. The recently adopted cyber defence policy determines the principles for the protection of the information systems of the Alliance, the establishment of cyber security related standards for NATO and the helping of allies in case of cyber attacks.
President Ilves: Article 5 of the NATO Charter will Remain in Force when New Risks Arise
Apr 4 - President Toomas Hendrik Ilves participated in the panel of The Bucharest Conference organised by the German Marshall Fund along with Turkish Foreign Minister Ali Babacani, former SACEUR General Joseph Ralston, and Polish Foreign Minister Radek Sikorski, to discuss the current role of Article 5 of the NATO Charter.
President Ilves stressed that the historical and traditional role of Article 5 will remain even when new security risks arise in the form of energy and cybersecurity. We should avoid the assessment of military risks changing into politically correct texts, since this prevents one from reacting to actual dangers.
Polish Foreign Minister Radek Sikorski, who participated in the conference panel a long with the Estonian Head of State, stressed that if the alliance does not carry out sufficient military exercises, fears may arise in the countries subject to risk, primarily the Eastern European countries, about the actual strength of Article 5.
President Ilves also spoke at a conference of Young Atlanticists, a youth organisation that deals with NATO topics. The President spoke about Estonia's experiences in joining NATO, the future and enlargement of the alliance, and new security threats in the energy and cybersecurity field.
Afghanistan Strategy Accepted at NATO Summit
Apr 3 - The NATO alliance met with the president of Afghanistan within the framework of the summit in Bucharest.
The NATO heads of state and government emphasised that the alliance has a long-term commitment to ensuring stability and improving the standard of living in Afghanistan. They also assured that the allies are prepared to continue the operation in Afghanistan for as long as necessary.
Prime Minister Andrus Ansip believes that the Afghanistan strategy approved in Bucharest will help the alliance better handle future challenges. Hopefully the NATO strategy will serve as an example for other international organisations as well, Ansip said.
Another topic that received a lot of attention was the importance of international co-operation in guaranteeing the success of the Afghanistan mission. Co-ordination and co-operation between international organisations, particularly the EU and NATO, must be more effective, the Estonian prime minister emphasised. The prime minister expressed hope that Kai Eide becoming UN Special Envoy to Afghanistan provides a good opportunity to intensify co-operation between many organisations.
Foreign Minister Urmas Paet added that Estonia feels that the UN should become the primary co-ordinator of international aid in Afghanistan. We think it's necessary to clearly define the role of UN envoy Kai Eide, so that different nations and organisations will all see his role the same way, said Paet.
According to Defence Minister Jaak Aaviksoo, Estonia's contributions in Afghanistan are already remarkable. Despite this fact, we plan to send a mine thrower unit to Afghanistan this spring, said Aaviksoo. The defence minister added that even if we increase our contribution, we will stay within the guidelines of Estonia's current mandate, which allows for 150 soldiers.
Foreign Minister Paet Spoke with his Canadian and Georgian Colleagues about NATO Enlargement
Apr 3 - Estonian Foreign Minister Urmas Paet met with Canadian Foreign Minister Maxime Bernier and Georgian Foreign Minister David Bakradze, within the framework of the NATO summit in Bucharest.
In the meeting with the Canadian foreign minister, topics of discussion included the two nations' contributions in Afghanistan, the cyber defence centre being set up in Estonia, and the possibility of concluding a youth exchange agreement in the near future.
The ministers emphasised that Estonia and Canada have similarly positive positions when it comes to NATO enlargement and issuing Membership Acton Plans (MAP) to Georgia and Ukraine. Estonia and Canada both contribute to the most complicated regions in the southern part of Afghanistan. The ministers also recognised that Estonia and Canada are united by their long-term presence in Afghanistan. Collective efforts in a complicated security region are a strong unifying force, said Paet. The Estonian foreign minister also gave an overview of the Estonian units' activities in Helmand province and introduced the work of the civil expert who was sent there in early March.
In talking about the NATO cyber security centre that is being established in Estonia, Urmas Paet asked Canada to consider joining the centre.
At the meeting with Georgian Foreign Minister David Bakradze, Georgia's NATO MAP perspective was discussed. Foreign Minister Paet confirmed that Estonia has always supported issuing a MAP to Georgia. He also emphasised that the Georgian government must guarantee that reforms will continue. According to the foreign minister, a strong signal must be sent to Georgia during the Bucharest summit. We should inspire them to try even harder to implement the necessary reforms.
FOREIGN NEWS
Estonia Welcomes France's Planned Reunification with NATO's Military Structure
Apr 7 - President Toomas Hendrik Ilves, who is on a working visit to France, met with French Foreign Minister Bernard Kouchner. President Ilves affirmed that Estonia welcomes France's plans to rejoin NATO's military structure.
Speaking about the results of the NATO Summit in Bucharest, the Estonian Head of State noted that although Georgia and Ukraine did not receive MAP, these two countries actually received an even better result - confirmation of their future accession. Georgia and Ukraine are states that have chosen the path of democracy. Our task is to ask ourselves - what can we do to help them? President Ilves said.
In addition to questions related to NATO's future and military co-operation, other topics under discussion were the main objectives of the French EU presidency, including developments in energy and climate policies.
In the discussions about the future of the European Union, President Ilves said that Estonia's views are very similar to those of France. We must understand that no country can stand alone on behalf its principles, and in the global context all the European Union member states are actually small, President Ilves said, and stressed that the European Union needs common policies regarding many issues.
President Ilves to the French Head of State: Estonia wants a Strong and Active European Union
Apr 7 - President Toomas Hendrik Ilves met with President Nicolas Sarkozy in France to discuss the priorities of the French presidency of the European Union, the results of the NATO Summit, as well as issues related to the European Union's common energy policy and Neighbourhood Policy.
President Ilves wished Nicolas Sarkozy success during the French presidency of the European Union and offered Estonia's multifaceted support for the achievement of the objectives for the French EU presidency. Estonia wants a strong and active European Union, which is not possible without the participation of France. The success of the French presidency is the joint success of all the member states, President Ilves said.
The heads of state recognised that in the world context, Europe is a strong partner as an integrated union, not as individual member states with special interests. Therefore it is important to commit oneself with renewed vigour to the challenges facing the Union, such as the global competitiveness of the community, climate change, energy security, and a stronger voice in the international arena. This is self-evident to small nations, but the interests of large countries are also better protected by acting together, President Ilves said.
Speaking about the priorities for the French EU presidency, both presidents asserted that there is a need for strengthening co-operation in the development of the European Union's common energy policy.
Energy policy is directly connected to security issues and the use of energy resources as foreign policy tools by certain countries is a reality that is apparent to everyone, said President Ilves. According to the head of state, agreement on uniform rules, the liberalisation of energy markets, and implementation of renewable energy sources are important for the protection of the energy markets of large as well as small and insulated states from the adverse impact of third countries. The possibilities of nuclear energy were also discussed at the meeting.
Paet: Investing in the Development of Democracy Helps Guarantee Security
Apr 7 - Foreign Minister Urmas Paet presented a speech entitled The EU and Its Neighbours: Common Values Unite Us All at the Zürich University of Technology.
In his speech, the foreign minister considered Europe's common values and convictions, and the importance of opportunities we have to protect and advance them. He said that throughout the ages, attempts have been made to define Europe on the basis of religious and philosophical principles, or according to geographical borders, but that its values and convictions transcend these definitions.
Our strength does not just come from within ourselves, but is derived from the purity and unity of our values. The victorious development of democratic values, or mankind's basic values - freedom and the rule of law - can be regarded as one of the most valuable achievements of the contemporary era, or perhaps of all history, said Paet.
Paet dedicated much of his speech to global security risks, acknowledging that global warming, deterioration of the environment, the increasing gap between developed and poorer nations and the increase of inequality and immigration force the European Union and all its member nations to think about how they will meet these challenges. In addition to uniting forces and sharing our capabilities, we also need solidarity. We cannot allow ourselves to become peripheral, said Paet.
The foreign minister feels that we need to systematically promote an innovative and knowledge-based economy and open up the electricity and energy market, so that in addition to the free movement of persons, goods, and capital, the free movement of services would also be ensured. He added that we also need to strengthen the European Union's common foreign and security policy, support international justice, and promote the endeavours of international organisations. We must be careful that the treaties preventing the proliferation of nuclear weapons, or the Treaty on Conventional Forces of Europe, not be threatened in any way, said Paet.
Foreign Minister Paet also touched upon the European Neighbourhood Policy, development co-operation, and the situation in the Balkans in his speech.
The full text of the foreign minister's speech can be read on the Foreign Ministry website at http://www.vm.ee/eng/kat_140/9545.html
Foreign Minister Invites Swiss Experts to Participate in Cyber Defence Centre in Tallinn
Apr 8 - Foreign Minister Urmas Paet, in Switzerland on a 2-day visit, met with Swiss Foreign Minister Micheline Calmy-Rey in Bern.
The Estonian and Swiss foreign ministers acknowledged that relations between the two nations are in an upswing. Both defence and cultural co-operation have been active, though economic relations need to be intensified.
The foreign ministers agreed that Estonia and Switzerland have many common viewpoints regarding possible developments in the Western Balkans, the Middle East and Afghanistan, as well about UN reform.
In talking about the Western Balkans, both of the ministers expressed hope that the group of countries recognising Kosovo with expand quickly and successfully. They feel that the young nation needs to be shown political and economic support. Ensuring stability in the region is extremely important, and Foreign Minister Paet emphasised that Kosovo must follow all of the proposals in Martti Ahtisaari's plan in its further development. They must also support minorities and their historical and cultural legacy.
Foreign Minister Calmy-Rey gave an overview of Swiss-European Union co-operation, focusing on various agreements and their implementation. She also spoke about Switzerland's accession to the Schengen area towards the end of this year. According to the Estonian foreign minister, co-operation and information exchange between nations is very important for the future of Schengen. Paet feels that the Schengen Information System has helped to find fugitives and people who are forbidden to enter the Schengen area. Estonia has only been a part of the Schengen zone for three months, but we have already seen the effectiveness and importance of the system for Estonia, Paet said.
Paet and Calmy-Rey also talked more about the Middle East and Afghanistan, the recent NATO summit, relations with Russia, and the cyber defence centre being established in Tallinn. Foreign Minister Urmas Paet invited the Swiss to participate in the defence centre's work.
Estonian Lawmakers Form Group for Ties with Belgium
Apr 8 - Seven members of the Estonian Parliament formed an interparliamentary group for ties with Belgium headed by Pro Patria and Res Publica Union (IRL) MP Andres Herkel.
"We are used to seeing the European Union in Brussels, but we should take more notice of Belgium, a good partner of ours," said Herkel, recalling that King Albert II is expected to visit Estonia in June.
Other members of the group are Centrists Aadu Must and Aivar Riisalu, Reformist Ivi Eenmaa, Margus Tsahkna from IRL, Social Democrat Mark Soosaar, and Maret Merisaar of the Greens of Estonia, who was elected vice-chair.
There are 56 groups in the parliament whose aim is to promote ties with other countries' legislatures. The groups focus on implementing Estonia's foreign policy goals and raising awareness of their country abroad.
Azerbaijan's Leaders Stress Importance of Co-operation with Estonia
Apr 2 - Azerbaijan's leaders emphasised the importance of co-operation with Estonia in meetings with Deputy Speaker of the Estonian Parliament Kristiina Ojuland.
The chairman of the Azerbaijani Parliament, Ogtai Assadov, said he considers development of relations with Estonia very important.
He noted that interparliamentary co-operation is expanding and the development of economic and political ties promotes cultural co-operation, citing Azerbaijani culture days in Estonia as an example.
The minister for economic development, Heidar Babayev, likewise underlined co-operation in Wednesday's meeting with Ojuland. The two talked about collaboration in the field of information technology and Estonian entrepreneurs' opportunities for investing in Azerbaijan.
Ojuland, in turn, affirmed Estonia's readiness to forge closer ties and named an agreement on avoiding double taxation as a significant step toward closer economic and trade co-operation.
DEFENCE NEWS
1st Infantry Brigade to be Affiliated with the Danish Division
Apr 4 - Estonian Minister of Defence Jaak Aaviksoo gave orders to commence negotiations for affiliating the 1st Infantry Brigade of the Estonian Defence Forces with the Danish Division.
The purpose of the order is to enter into a framework contract with Denmark this year to regulate training. Also, co-operation and the posting of senior officers to Multinational Corps North East HQ in Poland will be continued. The Danish Division also represents one of the four divisions of the Multinational Corps North East.
Affiliating the Estonian Infantry Brigade with the Danish Division will ensure a closer-than-ever connection with higher levels of command. Such units organise training that meets NATO standards and issue guidelines for the development of the Brigade HQ and sub-units. The Estonian staff officers will also gain experience in operational planning at the level of units higher than the brigade. Under Estonian conditions, the provision of such experiences would be rather complicated.
The 1st Infantry Brigade represents the main manoeuvre unit of the Estonian Defence Forces, which includes the majority of the units trained during the compulsory military service period. Scoutsbattalion, which consists of professional defence force members, is also a part of the 1. Inf Bde.
The Danish Division (Danske Division') represents the largest contingent of the Danish Army, and is also one of the four divisions of the Multinational Corps North East.
MoD Publishes Tendering Procedure for Traffic Area of Ämari Airbase
Apr 3 - The Ministry of Defence published the first and the most extensive 810 million EEK construction procurement for the renovation of the traffic area of Ämari Airbase. This is the most extensive construction procurement of the Ministry of Defence to date.
The scope of the procurement includes the renovation and construction of a runway and taxiways for the airfield, lighting systems, aprons and arrestor gears. The estimated value of the construction procurement is 810 million EEK, which amounts to 70% of the scope of the works to be conducted at the airbase through joint funding from NATO and the Republic of Estonia.
The renovation of Ämari Airbase should be completed by 2011 at which point the airbase should be capable of receiving transport aircrafts and operate as the base for air policing fighters. The development of the airbase is also important for Host Nation Support (HNS) purposes.
The total value of the renovation works to be conducted at the airbase, through joint funding from NATO and the Republic of Estonia, shall amount to a maximum of 1.5 billion EEK. Half a billion of this amount shall be contributed by NATO.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
March CPI Growth Indicates Slowdown of Price Rise - Bank of Estonia
Apr 7 - The March inflation in Estonia indicates that the price rise is slowing down, the Bank of Estonia said.
Once again, inflation was driven mainly by the increase in the price of motor fuel, the central bank noted. Without it, the month-on-month inflation would have stopped at 0.5 percent instead of 0.8 percent.
The March price rise in Estonia suggests that many merchants adjusted prices at the beginning of the year, which is why inflation has been considerably more modest in the last two months, the central bank said.
Inflation abroad has on the contrary continued accelerating.
There were no major changes in domestic inflationary pressures last month, the central bank said. The price rise is slowing, but wage growth, which remains high, prevents fast containment of inflation.
"The next few months will show whether the fast growth in outlays on essential consumer goods will diminish purchasing power with regards to other goods and how for instance the prices of services will respond to this," Bank of Estonia economist Martin Lindpere said.
Although several more excise duties will go up in the coming months, the inflation rate will slow considerably by the end of the year, the Bank of Estonia predicted. The Bank of Estonia will release its new spring forecast on April 16.
Q1 Sales by Rimi's Estonian Stores Grow 7 Percent on Year
Apr 8 - Sales by stores of the Rimi retail group in Estonia in the first quarter of 2008 totaled 88.3 million euros, an improvement of 7 percent on the same period a year ago.
Sales by Estonian stores in March came to 30.7 million euros, marking an annual increase of 6 percent, Rimi said.
Sales by Rimi's stores in all the Baltic states in the first three months of the year amounted to 300.8 million euros, up 16 percent year on year. Sales in March reached 106.1 million euros, signaling an increase of 12 percent over March 2007.
Quarterly sales in Latvia grew 21 percent year on year to 147.2 million euros while quarterly sales in Lithuania were up 19 percent at 65.3 million euros.
Sales in Latvia in March climbed 17 percent annually to 52.4 million euros and sales in Lithuania in March were 11 percent higher at 23 million euros.
Rimi operates 217 stores in the Baltic states, 66 of them in Estonia.
Estonian Bekker Port's Q1 Freight Turnover up 35 Percent on Year
Apr 7 - The freight turnover of the Bekker and Meeruse ports based in northern Tallinn increased by 35 percent year-on-year to 105,316 tons in the first quarter of this year.
According to the data provided by the ports, the import of goods declined by almost 19 percent to 28,538 tons while export surged 95 percent to 76,616 tons.
The export of wood granules soared 89 percent to 16,495 tons but the export of sawn timber shrank 39 percent to 13,890 tons.
The export of grains, a new development this year, came to 26,648 tons. The import of crushed stone decreased by almost 19 percent to 13,510 tons. No plasterboard was imported through the port in the first quarter.
Estonian Oil Shale Company Extracts Record Amount of Oil Shale
Apr 7 - Eesti Põlevkivi (Estonian Oil Shale), the mining arm of the state-owned power company Eesti Energia, extracted a total of 16.3 million tons of oil shale in the business year ended in March, the biggest amount in the last 15 years.
Eesti Põlevkivi sold 17.2 million tons of oil shale in the 2007-2008 business year, the company said.
In the previous business year the company extracted 12.9 million tons and sold 13.5 million tons of oil shale.
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