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Estonian Review: 5-11 March, 2008
14.03.2008
FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS
FOREIGN NEWS
Estonian President Urges EU to Think about Competitiveness
Mar 11 - Addressing a plenary session of the European Parliament, Estonian President Toomas Hendrik Ilves urged the European Union to give more thought to competitiveness and innovation and look more boldly ahead.
The president said that current thinking in the EU is not a cause for optimism, as the alliance has not been able to fulfil its own program for developing innovation and competitiveness.
"The emphasis my country placed on information technology paid off, allowed it to be more competitive. But this is not enough. More generally, Estonia as well as the rest of Europe is falling behind in innovation, research and development," Ilves said in Strasbourg.
In his words, innovations currently come first and foremost from the United States, which itself depends on drawing brains from Europe as well as from India and China to maintain its high level of competitiveness.
"We are averse to immigration, our children increasingly choose not to study math, science and engineering, and we are choosing to close ourselves off from competition within the EU in one of the most competitive sectors of the world economy: services," Ilves said.
Speaking about the lagging competitiveness of Europe, Ilves observed that Koreans and Japanese enjoy rates of internetisation far greater than most of Europe, and Asia and the United States are producing far more engineers and scientists.
"All of this will lead to a gradual decline of Europe and European competitiveness in a global economy unless, of course, we do something about it," he said. "But this is not enough. We need more courage; we need more of a vision and an understanding of where we and the world will be in 20 or 25 years, when even the economic powerhouse that is Germany today will be dwarfed by India and China."
NATO Foreign Ministers Discussed Enlargement of the Alliance
Mar 6 - Estonian Foreign Minister Urmas Paet participated in an informal meeting of the NATO foreign ministers in Brussels. The foreign ministers spent part of the time discussing preparations for the NATO summit in Bucharest from 2-4 April.
The main topics of the meeting were further expansion of the alliance, partnership relations with Georgia and Ukraine, NATO operations, and co-operation with the European Union in operations in Afghanistan and Kosovo.
The foreign ministers expressed their opinions regarding the possibility of presenting accession invitations to Croatia, Albania and Macedonia during the Bucharest summit.
Foreign Minister Paet noted that drawing the Western Balkan nations closer to NATO is essential for ensuring the security of the region. Estonia supports giving all three countries membership action plans in Bucharest, assuming that the candidate nations will continue making the necessary reforms and preparations at the same pace, said Paet.
When talking about NATO operations, Foreign Minister Urmas Paet emphasised that effective international co-operation and the co-ordination of the efforts of different organisations play a vital role in the building up of Afghanistan. The foreign minister expressed hope that the European Union's contribution will increase and that we will get a clearer sense of Afghanistan's needs.
Estonia Supports Immediate Initiation of Visa Facilitation and Trade Negotiations between EU and Georgia
Mar 10 - Estonian Foreign Minister Urmas Paet participated in a session of the European Union General Affairs and External Relations Council (GAERC) in Brussels.
The main topic of the external relations session was the situation in Georgia prior to the parliamentary elections. The main item of discussion in the general affairs portion was preparations for the spring European Council.
The foreign policy leaders of the European Union agreed that it is necessary to provide multi-faceted aid to help Georgia strengthen its democratic institutions. "Georgia's central electoral commission needs support so that the parliamentary elections in May will be free and fair," said Foreign Minister Paet.
According to the Estonian foreign minister, the European Union and Georgia must begin a dialogue regarding migration and visa facilitation very soon. "It is essential to move forward as fast as possible with both visa facilitation and free trade agreement negotiations," Paet said. Foreign Minister Urmas Paet stated that Estonia believes it is extremely important to increase the European Union's influence in regulating the conflict between Abkhazia and South Ossetia. "The proposals by EU Special Envoy Peter Semneby for creating trust between the two sides must be put into practice more strongly, in order to encourage dialogue between the conflicting areas and the rest of Georgia," Paet elaborated. The foreign ministers agreed that the latest developments in Azerbaijan and Armenia and the overall situation in South Caucasus demand more attention from the European Union.
All EU Citizens should have Visa-free Access to USA
Mar 11 - All citizens of the European Union should have the opportunity of visa-free travel to the United States, Estonian President Toomas Hendrik Ilves told European Commission President Jose Manuel Barroso.
"We consider it necessary and inevitable for citizens of all European Union member states or, to put it more briefly, all EU citizens, to have the opportunity of visa-free travel to the United States, because this means equal treatment of all member countries," the president said.
Ilves recalled that many EU states have been enjoying visa-free treatment in the United States already for decades.
"We understand that this is a complex technical process, a great deal of work in which member states of the alliance, the European Commission and the United States are involved," the head of state said.
On 12 March the Estonian government signed a memorandum of understanding with the United States as a prerequisite for joining the US visa waiver program.
Latvia is also signing an agreement and Hungary is soon to follow suit.
An analogous deal concluded between the Czech Republic and the United States earlier angered the executive Commission and some of the so-called old EU countries.
EU Environmental Council Backs Estonian Proposals
Mar 5 - A meeting of EU environmental ministers at the beginning of this week approved of most of Estonia's positions regarding climate and energy.
The environmental council will present its conclusions to the EU Council, which will gather on 13-14 March.
As one agenda item, the council had a political discussion on the proposed package of measures dealing with climate and renewable energy. The council found that the package meets the conditions agreed upon by the EU Council in spring 2007.
Most of the substantive proposals by Estonia were approved.
For instance, a proposal was included in the draft to emphasise the need to take into account, in the case of different member states, the potential vulnerability of their energy security and competitiveness arising from international competition.
"This also means that the environmental council will go to the EU Council with a proposal to analyse the situation of countries with vulnerable energy sectors before deciding how to apply carbon dioxide quotas and [regulate] trade in them in the future," Environmental Minister Jaanus Tamkivi said.
Estonian Parliament Delegation on Official Visit to Australia
Mar 8 - Speaker of the Estonian Parliament Ene Ergma and several lawmakers paid an official visit to Australia.
In Sydney, the capital of New South Wales, the delegation met with Governor Marie Bashir and representatives of the legislative assembly of the state. A reception in honour of the 90th anniversary of the Republic of Estonia was held, and guests included representatives of the Estonian community, figures in Australia's political and public life, and the consular corps.
In the Estonian House in Sydney, Ergma handed over a national flag that has flown at the top of the Pikk Hermann Tower in Tallinn to the keepers of the Estonian spirit in Austrialia.
In Canberra, the capital of Australia, the parliament delegation will meet with President of the Australian Parliament Alan Ferguson, Chairman of the House of Representatives Harry Jenkings, Chairman of the Parliament's foreign, defence and trade commission Michael Forshaw, Chairman of the Parliament's Baltic parliamentary group James Bidgood, and the Ambassador of the European Commission to Australia Bruno Julien.
Maasikas Met with Deputy Foreign Minister of Israel
Mar 5 - Secretary General of the Foreign Ministry Matti Maasikas and Estonian Ambassador to Israel Aino Lepik von Wirén, in Israel on a visit, met with Deputy Foreign Minister of Israel Majalli Whbee.
Bilateral relations, accession negotiations with the OECD, the Middle East peace process, and Israel's relations with the European Union were all under discussion at the meeting.
Deputy Foreign Minister Majalli Whbee gave a thorough overview of the situation in the Middle East and confirmed that Israel would like to move forward with peace negotiations, as well as for Mahmoud Abbas to return to the negotiating table. Secretary General Maasikas agreed that the negotiation process must continue, and that in order for it to advance an effort must be made not only by the negotiating parties, but the international community as a whole-the European Union, the USA, and others.
In talking about bilateral relations, it was agreed that there are still many untapped opportunities for advancing economic relations. The deputy foreign minister stated that Israel awaits an Estonian business delegation which could become familiar with business opportunities in Israel. Whbee also gave an overview of the rapid developments in Israel's information technology sector. Matti Maasikas confirmed that Estonia still wishes to open an embassy in Tel Aviv by 2009 at the latest.
Estonia Supports Development of Georgia's Political System
Mar 10 - Georgian opposition leaders Levan Gatšetšiladze, Salome Zurabišvili, David Usupašvili and Kakha Kukava paid a visit to Estonia.
The opposition leaders were here within the framework of the Open Estonia Foundation, which the Foreign Ministry supported with 43,420 kroons from its development co-operation budget.
A strong opposition is a requirement for the free and balanced development of a society, noted Foreign Minister Urmas Paet. For the quick development of a transitional society, it is necessary to co-operate with all parties, he added.
The goal of the visit is to offer the key figures in Georgia's opposition party the chance to get acquainted with the structure of Estonia's state institutions and to meet the President of the Republic, members of the Parliament, high state officials, journalists, and representatives from citizens' associations. The meetings will give our guests an overview of the work of Estonia's state institutions, media, and citizens' associations, as well as the necessary role they play in the development of a democratic state.
Estonian President Hands Decoration to Latvian Premier
Mar 6 - Estonian President Toomas Hendrik Ilves gave Prime Minister of Latvia Ivars Godmanis the Order of the Cross of Terra Mariana, 1st Class.
The president conferred the decoration on Godmanis in February on the occasion of the 90th anniversary of the Republic of Estonia for his role in promoting Latvian-Estonian relations.
Ilves said that the order also symbolised gratitude for and recognition of Godmanis as one of the initiators of Baltic co-operation in the days when the countries were restoring their independence, and for the support Estonia has always received from him.
Finland to Issue Estonian Visas in 10 Countries
Mar 6 - Estonia and Finland have come to an agreement under which the latter country will represent Estonia in the issuance of visas in 10 countries starting from March 17.
These 10 countries are Indonesia, Namibia, Peru, Philippines, Serbia, Syria, Thailand, Tanzania, Tunisia, and the United Arab Emirates.
Matti Maasikas, deputy secretary general of the ministry, said that the signing of representation agreements makes application for a visa easier for residents in countries where there is no Estonian mission.
The arrangement is made possible by the Schengen Treaty and it covers only the issuance of visas, not other consular services.
DEFENCE NEWS
Estonian Armed Forces Chief Goes Patrolling in Iraq
Mar 11 - The chief of the Estonian armed forces, Lt. Gen. Ants Laaneots, visited the infantry platoon ESTPLA-16 serving in Iraq.
Laaneots joined the soldiers in a motorised and foot patrol of villages outside Sab al Bor, the unit's area of responsibility.
"The platoon acted professionally and cool-headedly out in the terrain," the general said. "The personnel of the Kuperjanov Battalion have made obvious progress in the three months of the mission. They have gained self-confidence and the experience one can only get in real operations."
Laaneots said the former reservists have become professional soldiers who are in no way inferior to allied troops.
In the evening Laaneots met with the leaders of the NATO training mission in Iraq who briefed him about the present state of the Iraqi forces.
The Defence Forces commander is to meet also with the commander of Multinational Force Iraq, Gen. David Petraeus, and commander of Multinational Corps Lt. Gen. Lloyd Austin.
ESTPLA-16, formed mostly of reserve soldiers from the Kuperjanov Battalion, has been serving in Iraq since December 2007.
Estonian military have been participating in Operation Iraqi Freedom since June 2003. During that time two soldiers have been killed and a score wounded.
Latvian Defence Forces Chief of Staff Paid Visit to Estonia
Mar 7 - Col. Dilans met with Col. Neeme Väli, chief of staff of the Estonian Defence Forces, in order to discuss issues connected with overseas operations and possibilities for co-operation in the organisation of procurements.
Col. Dilans has long been connected with the Baltic Battalion project and the Baltic Defence College. Among other things, he has served as chief of the senior officers' course at the Baltic Defence College in Tartu.
In his capacity as chief of staff, Col. Neeme Väli visited the Latvian Defence Forces general staff last December.
Norwegian Home Guard Chief Came to Estonia
Mar 11 - The chief of the Norwegian Home Guard, Maj. Gen. Bernt Ivar Ferdinand Brovold, met with the head of Estonia's Kaitseliit (Defence League), Lt. Col. Raivo Lumiste, and visited the Männiku shooting range of the Tallinn Company of voluntary corps.
"The Home Guard of Norway has been a good partner to Kaitseliit for years. Right now our interest is above all in the Norwegian Home Guard's experience of streamlining the organisation," Lumiste said.
The Home Guard (Heimevernet) has been training winter warfare instructors for Kaitseliit for a number of years.
The two organisations also have co-operated in youth work. In June 10 members of Kaitseliit's youth branches are going to take part in a military competition in Norway.
Brovold, 53, has served in the Norwegian armed forces since 1975.
DOMESTIC NEWS
Honorary Consuls in Estonia Form Association
Mar 10 - Honorary consuls working in Estonia formed an association of their own, the Honorary Consul Corps, and elected Aku Sorainen, honorary consul for Malta, its chairman.
"The purpose of the Honorary Consul Corps is to maintain and develop relations and ties with Estonian institutions, organisations and business community," Sorainen explained.
There are 27 honorary consuls in Estonia, mostly representing countries that do not have diplomatic representations here.
Elected to the board of the corps were Ain Lindre representing Indonesia, Costa Rica's honorary consul Gunnar Kraft, Slovakia's honorary consul Even Tudeberg, and the longest serving honorary consul in Estonia, Enn Vels, who represents Austria.
Estonia's New Justice Chancellor Sworn In
Mar 10 - Estonia's new chancellor of justice Indrek Teder was sworn in before parliament and took office.
The parliament appointed Teder chancellor of justice at the president's proposal on Feb. 12 with votes 80-3 and one abstention. His term of office runs for seven years.
Teder, 50, is a graduate of the law faculty of Tartu University. At the end of February he alienated his interest in the Teder, Glikman & Partnerid law office which is continuing under a new business name, Glikman & Partnerid, and resigned from its board. As required by law, his membership in the Estonian Bar Association was also suspended.
Teder's predecessor Allar Jõks, who quit the position, will after a brief vacation take up a post in Georgia as adviser to the local ombudsman.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
Estonia to Invest Billions into Transport
Mar 6 - The Estonian government confirmed a plan of investments to develop the transport infrastructure.
According to the plan, about 6.5 billion kroons of mostly European structural fund money will be channelled into the development of transport hubs, railways, local airfields, and ports. The state plans to invest 1.8 billion kroons in infrastructure development in the capital Tallinn as a key transport hub in Estonia, the Ministry of Economy and Communications said.
The plan outlines an investment of 2.6 billion kroons in railways. In the next few years, all passenger trains will be replaced.
A further 274 million kroons was earmarked for the airfields of Kärdla, Kuressaare, Ruhnu and Tartu. Slightly more than one billion kroons will be channelled into ports in the coming years.
Port of Tallinn Expects to Conclude Deal with the Chinese in Fall
Mar 7 - The chief executive of Tallinna Sadam told a transit commission meeting at the Ministry of Economy and Communications that the state-owned port company hopes to sign investment agreements with China in the fall.
The Baltic Sea is one of the fastest-developing regions in which China is considering investing, CEO Ain Kaljurand said.
Plans are being made for a container terminal at Estonia's main merchant port of Muuga, east of Tallinn. For handling containers, two kilometres of wharves need to be built. A terminal with an area of 100 hectares could receive ships carrying up to 8,000 containers, the ministry said in a statement.
Estonian Air to Get Three New Planes
Mar 10 - Estonian Air is scheduled to get three new-generation Bombardier CRJ900s as an addition to its existing fleet of aircraft in spring 2009.
Estonian Air's current fleet is made up of two 142-seat Boeing 737-300 planes and four 118-seat Boeing 737-500 planes, the company said.
The Bombardier CRJ900 is designed to hold 86-90 passengers with two lavatories and a galley as standard equipment. The plane is 36.2 metres long with a wing span of 24.9 metres.
Estonian Furniture Maker Standard Boosts Sales 28 Percent on Year
Mar 5 - The unaudited consolidated sales revenue of the Estonian office and hotel furniture maker Standard was 273 million kroons in 2007, an increase of 28 percent from 2006.
Pre-tax profit, at 17 million kroons, soared 52 percent year-on-year, the company said.
Export accounted for 74 million kroons of Standard's sales in 2007, growing by 23 percent against the previous year. The largest markets were Latvia and Finland with exports worth 32 million and 25 million kroons, respectively. Beside Latvia and Finland, Germany, Sweden, Holland, Russia and Lithuania were also important export markets in 2007.
"Standard's stable growth is largely based on hotel furniture projects on foreign markets and office and school furniture on the domestic market," board member and marketing director Priit Tamm observed.
Bank of Estonia Predicts Slowing of Inflation in Second Half of 2008
Mar 7 - The Bank of Estonia predicts that price growth will slow considerably in the second half of 2008, and the Finance Ministry judges that the peak of inflation is over by now.
The monthly rise in prices was significantly slower in February in comparison with January's 2.2 percent, economist of the central bank Martin Lindpere said. Consumer prices rose last month by 0.4 percent month-on-month and by 11.3 percent compared to February 2007.
Inflationary pressures were reduced by the cooling of the economy, which is expressed in the rapid slowdown of growth in retail trade and industrial production. Wage growth is no longer as fast as at the end of last year, but the government should support further slowing more strongly through budget policies, the economist said.
The monthly price rise was the slowest in the last six months and the ministry sees gradual deceleration of inflation ahead.
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