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Estonian Review: 20-26 February, 2008

29.02.2008

90th ANNIVERSARY OF THE REPUBLIC OF ESTONIA
FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS



90th ANNIVERSARY OF THE REPUBLIC OF ESTONIA

President: Time for Estonians to Focus on Lasting Values

Feb 24
- In his speech at the festive concert dedicated to the 90th anniversary of the declaration of the Republic of Estonia, President Toomas Hendrik Ilves stressed that it is time for Estonians to focus on lasting values, such as family, tolerance and effective use of one's knowledge.
"A 90-year-old country is a young country, but a mature adult, not a teenager any longer. Therefore it is natural that the citizens' relationship with their country also assumes a different nature," the president said in his speech at the Estonia Theatre.
"The foundations of the future we built 20 years ago are stronger than ever before. Perhaps, then, we ought to look at it with a different eye?" the president asked. An adult - a person or a country - starts to think about lasting values. Concentrating on lasting values will let us see and differentiate between the important and the not-so-important, the president said. President Ilves stressed the importance of life and its continuation: family and children. "This is our greatest concern: to have families, to have enough children," Ilves said, adding that in the last few years more children have been born to Estonian families than ten years ago and the number of children born in Estonia is above the European average. "This gives us hope. But no more than that," he said.
The demanding world around us will put a number of important questions to Estonia in the coming decade, the president said, adding that the first and most vital of those is energy.
"Or rather, the question of whether we shall have the energy to become an economy of wise people, and take our own decisions about what to do and how to do it. We know today what our energy demand will be in ten years' time. We know what Estonia's choices are. We do not yet know which of those choices is best for Estonia," he said.
The full text is available at the President's web-page:
http://www.president.ee/en/duties/speeches.php?gid=109397



FOREIGN NEWS

Foreign Minister Speaks to Parliament about most Important Foreign and Security Policy Topics

Feb 21
- Estonian Foreign Minister Urmas Paet appeared before Parliament with a speech about the nation's foreign policy.
The foreign minister talked about the most important topics in current foreign and security policy, such as Kosovo's independence, and the situations in Afghanistan, Iraq, the Middle East, and Africa.
"Estonia has recognised Kosovo's independence," the foreign minister stated. "Also, we are supporting the European Security and Defence Policy (ESDP) civilian mission in Kosovo, to which we are contributing with our experts," he added. Paet noted that Serbia should also participate in the region's long-term development solutions. "There is no doubt that Serbia needs Europe's, and thus also Estonia's, attention," the foreign minister said.
The foreign minister confirmed that Estonia will continue to work with its partners to improve the security situation in Afghanistan, as a part of NATO's most important operation there. "Our development aid has increased manifold, with most of our donations going to the medical sector. This year, we will also deploy a police expert to Kabul and a health care expert to Helmand," said Paet.
The foreign minister also touched on NATO enlargement, relations with Russia, energy issues, the European Union's Baltic Sea Region Strategy, relations with Neighbourhood Policy partner countries, and development co-operation.
"To ensure world-wide and regional security, it is necessary to bring new democracies and the Western Balkan states closer to NATO," said the foreign minister. "Assuming that the candidate countries of Croatia, Macedonia, and Albania continue to implement the necessary reforms and preparations for accession at their present pace, Estonia supports the issuing of invitations to accede to all three of these states at the Bucharest summit," said Paet. "We also support the further Euro-Atlantic integration of Georgia and Ukraine, and feel that both partners could be given a Membership Action Plan (MAP) in the course of 2008."
The foreign minister believes it is vital for active dialogue to continue between the European Union and Russia. "For Estonia, however, I believe it is essential to continue a pragmatic dialogue with Russia. We are moving ahead one small step at a time, keeping open various channels of communication and developing agreements that will bring practical benefits to the residents of both countries," said Paet.
Foreign Minister Paet spoke extensively about energy security issues. "It is infinitely essential to diversify energy sources and supply channels," Paet emphasised. "This calls for the connecting of the Estonian and Finnish, Lithuanian and Swedish, as well as Polish and Lithuanian electricity and gas supply systems," he said. He also feels it is important for the European Union to have a clear and concrete foreign policy concerning energy.
The minister spoke also on cyber security issues, saying that the development of international laws in this field still stands ahead of us. "European Union's cyber co-operation must be coherent and wide-ranging. It must include all areas that could be affected by cybercrime, including competitiveness." Paet emphasised.
The speech is available at the Ministry of Foreign Affairs web-page:
http://www.vm.ee/eng/kat_140/9352.html


Paet: Estonian-Japanese Relations are Important and Worth Developing

Feb 27
- Estonian Foreign Minister Urmas Paet said Estonia's political and economic relations with Japan are of great importance and deserve to be developed.
"There is room for development in economic relations with Japan, so we consider it important to develop the treaty basis,” Paet said.
The foreign minister began an official visit to Japan on 27 February. The situation in Afghanistan, Pakistan and Sudan, as well a Japan's relations with the European Union and NATO was discussed in addition to the two countries' relations.
Emperor of Japan Akihito and Empress Michiko paid a visit to Estonia in May 2007.


Estonia Helps Georgia Reform its Public Radio-TV Company

Feb 21
- The Estonian Foreign Ministry is supporting consultations for Georgia's national public radio-TV company (GTVR - Georgian TV and Radio) with 195,300 kroons.
According to Foreign Minister Urmas Paet, a democratic society with a market economy cannot function without free and balanced journalism. “Georgia has made remarkable steps towards reforming its civil society. Now it is important to continue implementing these changes, which include making their uneven media landscape more contemporary and European,” said Foreign Minister Paet.
Estonian Public Broadcasting (Eesti Rahvusringhääling - ERR) will consult on the reforms of Georgia's public radio-TV company. The goals of the project are to evaluate GTVR's risks, support the formation of a balanced media organisation appropriate to a democratic nation, and advise GTVR's management and employees on implementing the reforms that have been initiated.


Estonia to be Active Participant in Anti-Nuclear Terrorism Efforts

Feb 21
- Estonia wishes to be an active participant in the US-Russian initiative to combat nuclear terrorism, Foreign Minister Urmas Paet said.
The global initiative to combat nuclear terrorism launched by the presidents of the United States and Russia, which Estonia joined last year, was under discussion at Paet's meeting with US Ambassador Stanley Phillips and the Russian envoy Nikolai Uspensky.
The ambassadors thanked Estonia for joining the initiative. All three agreed that the initiative has been a success as the number of acceding countries has steadily increased.
In Paet's words, Estonia wants to be an active participant in the movement to fight nuclear terrorism. In Estonia's view, it is essential for the international community to take steps to prevent nuclear weapons and radioactive substances from falling into the hands of terrorists, or nuclear facilities becoming the target of terrorist attacks.
George W. Bush and Vladimir Putin announced the initiative to combat nuclear terrorism in 2006 to improve control and physical protection of nuclear material and radioactive substances as well as the security of nuclear facilities and avert illicit trafficking in such material. To date 64 countries have joined the initiative.


Estonia Proposes to Discuss Cyber Security at OSCE Assembly

Feb 21
- The Estonian delegation to the Parliamentary Assembly of the Organisation for Security and Co-operation in Europe has distributed a formal proposal to put the topic of cyber security on the agenda of this year's session of the assembly.
"We have begun drafting a respective resolution and raising support for it among assembly member delegations," the head of the Estonian group, Paul-Eerik Rummo, said. The OSCE cannot avoid dealing with cyber attacks as a growing threat to global security, he said.
In Rummo's words, only 22 countries have to date joined the only binding international agreement on this issue, the Council of Europe Convention on Cyber Crime.
"As the convention is also open to countries not belonging to the Council of Europe, the first step the OSCE Parliamentary Assembly should take is to invite all countries to accede to it," Rummo said in a statement on behalf of the Estonian delegation.
The annual session of the OSCE Parliamentary Assembly will be held in the Kazakh capital Astana from June 29 to July 3.


The Albanian Ambassador Presented his Credentials to the President of the Republic

Feb 21
- President Toomas Hendrik Ilves received Florent Çeliku, the Ambassador of Albania, who presented his credentials to the head of state.
President Ilves affirmed that Estonia supports further enlargement of the European Union and accession of the Western Balkan countries upon their fulfilment of the necessary criteria. Estonia also places importance on the aspirations of Albania to join NATO.
"NATO membership assumes that a country is strong, sustainable, and democratic. I am glad to recognise that Albania is moving forward with reforms and I affirm to you that Estonia is ready to share its experiences in respect to accession to the European Union and NATO,” said the head of state at the meeting with the ambassador.
Ambassador Florent Çeliku resides in Warsaw.


The President of the Republic Accepted Credentials from the Ambassador of San Marino

Feb 21
- President Toomas Hendrik Ilves received Silvia Berti, the Ambassador of the Republic of San Marino, who presented her credentials to the head of state.
President Ilves expressed his delight that San Marino has decided to accredit an ambassador to Estonia. He said that this will certainly promote the development of relations between the two countries and help to intensify co-operation in the area of tourism, which is an important economic sector for both countries. “Estonia also wishes to assign an ambassador to San Marino,” the head of state affirmed.
At the meeting between President Ilves and Ambassador Berti, the common interests of Estonia and San Marino were also discussed, as well as opportunities for co-operation in international organisations.
Estonia concluded diplomatic relations with San Marino in July 2003. San Marino, with a population of slightly over 30,000, has one of the highest GDPs in Europe. Ambassador Berti resides in San Marino.


The new Spanish Ambassador to Estonia Presented his Credentials to the President of the Republic

Feb 21
- President Toomas Hendrik Ilves received Eduardo Ibánes López-Dóri, the Ambassador of the Kingdom of Spain, who presented his credentials.
“The focus of the relations between Estonia and Spain has increasingly shifted from bilateral issues to European and international questions, and we have worked together to develop several policies. Since Estonia and Spain agree in many areas - in co-operation related to the European Union - a strong and undivided Europe is the goal for both countries,” President Ilves said.
At the meeting with the ambassador, the head of state highlighted cultural relations that have gained new momentum after a cultural and educational co-operation agreement came into force in November 2007. According to President Ilves, there is definitely room for improving economic relations between Estonia and Spain.
The Estonian head of state made a state visit to Spain last July, where he met with King Juan Carlos and Queen Sofia, Manuel Marín González, the President of the Congress of Deputies, as well as Prime Minister José Luis Rodríguez Zapatero. At the meeting, the head of state reminded the ambassador that it would be a great honour if the Spanish royal couple would make a visit to Estonia at the first opportunity convenient for them.


All-party Estonian Group Set Up in Ukrainian Parliament

Feb 21
- Thirteen members of the Ukrainian Parliament established an all-party Estonian group.
The chairman of the group is Andrei Shevchenko from Yulia Tymoshenko's group, but there are also representatives from the Party of the Regions and from the Our Ukraine bloc.
Before running for parliament, Shevchenko was head of the Channel 5 television channel. He is one of the advocates of media freedom and a close adviser to Prime Minister Tymoshenko.
Silver Meikar, chairman of the Ukrainian group in the Estonian parliament, said that establishment of the group would make co-operation with the Ukrainian parliament official.



DEFENCE NEWS

Army Commander: Key to Estonia's Security Lies in Strong Reserve Force

Feb 23
- Commander of the Defence Forces Lt. Gen. Ants Laaneots said in his speech at the military parade that Estonia must not become careless in matters of security.
"Estonia managed to restore its statehood in 1991 in a bloodless way. Maybe that victory without victims has made us careless, even haughty with regards to ensuring our security," Laaneots said in his speech at the parade marking the 90th anniversary of the proclamation of the Republic of Estonia in Pärnu.
The army chief described freedom as a fragile treasure that must be protected vigorously and consistently.
"The international security situation is changing, and unfortunately not for the better,” Laaneots said.
Estonia does have the means to defend itself. It is a member of the world's most powerful defence organisation NATO and the European Union, a body that is rapidly developing its military capabilities, he said.
"Estonian soldiers and officers must learn to fight and organise combat in an excellent manner, be it in defence of our native land here or to act together with our allies abroad," Laaneots said.
Estonia's small population and limited resources do not allow it to maintain a professional military of sufficient size and capabilities.
"The Estonian defence force is a military force in reserve. The preservation of our combat ability requires regular participation in reserve training," Laaneots said.
Turning to present and future reservists, the chief of the armed forces said that in the near future, the Defence Forces will be sending out invitations more often to reserve training.


Commander of the Defence Forces Appoints Laneman Operations Chief

Feb 22
- Commander of the Estonian defence forces Lt. Gen. Ants Laaneots appointed Brig. Gen. Alar Laneman as chief of operations of the Defence Forces and acting commander of the Army.
Laneman has recently finished his studies at the Royal College of Defence Studies in London, being the first Estonian officer to graduate from that college.
He served as chief of staff of the Army from 2001-2002 and as chief of staff of the Defence Forces from 2002-2007.
From 1998 to 2001 Laneman studied at the Swedish Royal Military Academy. Originally, he graduated from a Tallinn-based military college for officers of Soviet Army construction units. He was commander of the joint Baltic professional battalion BALTBAT from 1995-1998.
His appointment takes effect on 3 March.



DOMESTIC NEWS

Estonian Parliament Appoints State Auditor

Feb 26
- Parliament backed President Toomas Hendrik Ilves's proposal to appoint Mihkel Oviir for a second term of office as the State Auditor.
Oviir was born on October 11, 1942 in Marjamaa. He acquired secondary education in Tallinn and graduated cum laude from the Tartu University Faculty of Law in 1975. In 2002 he was appointed adviser and deputy justice chancellor.
On February 25, 2003, the Parliament appointed Oviir State Auditor, a few months after then-State Auditor Juhan Parts went into politics. Oviir then collected the votes of 69 members of Parliament in favour and 16 against, while one abstained.
Oviir's present credentials as State Auditor will expire on March 31.


Tax and Customs Board to Get new Radiation Monitors

Feb 25
- A joint protocol of intent signed by the Estonian Tax and Customs Board (MTA) and the US Department of Energy will contribute to the acquisition of new radiation monitors and their application on Estonia's eastern border.
Enriko Aav, Director-General of MTA, and the United States Ambassador to Estonia Stanley Phillips signed an agreement to promote co-operation with the aim to prevent the smuggling of nuclear and radioactive substances.
The US Department of Energy will help customs by means of new technology for the detection of radioactive substances and for communication. After Estonia receives the monitors, co-operation will also include training for customs officials and assistance in maintaining the monitors.
Modern technology makes it possible to defend Estonian society and the European Union better, Aav said. "It is in the interests of all of us that radioactive materials carried across the Estonian border should be identified and their illegal shipment be prevented," he underlined.
Phillips said it was extremely important for the United States to co-operate with different countries and institutions in the fight against illegal shipments of radioactive substances in order to obstruct terrorism and save human lives.
The radioactivity monitors work at passage gates and react both to gamma and neutron radiation. The monitors make it possible to find hidden or screened radioactive substances. The internet-based system is compatible with the information systems already in use.
The new monitors should start working at Estonia's borders and ports in the second half of 2008. MTA's co-operation with US agencies goes back more than ten years. The first radiation monitors were established on the eastern border with US assistance in 1996.



ECONOMIC NEWS

Currency Rates in Kroons
(Bank of Estonia)


Estonian Air Sees Number of Passengers Increase by 17 Percent

Feb 20
- A total of 47,754 passengers travelled by Estonian Air in January 2008, 17 percent more than in January 2007.
The company carried 41,940 passengers on its regular flights, 15 percent more on year. There were 924 flights in January, 313 more than January 2007. The regular flights' market share of Estonian Air was 42 percent at the Tallinn Airport in January, 4 percentage points higher than in the same period last year. The general market share of Estonian Air at Tallinn Airport was 28 percent.
In January, flights to Oslo, Milan and Moscow had the highest number of passengers.


Average Wages up 20.1 Percent on Year in Estonia

Feb 22
- The Estonian Statistical Office said the gross average monthly wages in Q4 2007 stood at 12,270 kroons, 20.1 percent higher than in the last quarter of 2006.
The gross average wages in October were 11,564 kroons, in November 12,120 kroons and in December 13,174 kroons.
In Q1 2007 the gross average wages were 10,322 kroons, in Q2 11,549 kroons and in Q3 10,899 kroons. The average for 2006 was 9,407 kroons.
In the last quarter of 2007, the employer's average cost per employee was 16,518 kroons monthly. On year, the average cost of labour per month increased by 20.2 percent.


Media Advertising Market Expanded 29 Percent in 2007

Feb 25
- Estonia's media advertising market grew by 29 percent year-on-year in 2007, reaching a size of 1.788 billion kroons.
On the basis of information provided by TNS Emor, it can be said that the Estonian growth rate is one of the fastest in the world. The advertising market grew by more than 20 percent in all sectors of the media. Just like in 2006, the internet was the most rapidly expanding medium for advertising, boasting an annual growth rate of 69 percent.
The largest advertiser in Estonia last year was Procter & Gamble, followed by EMT, Tele2 Eesti, L'Oreal, Rimi Baltic, Saku Brewery, Hansapank, A-Selver, Elisa Eesti, and Elion.
In a comparison of the 10 leading business categories for which advertisements were published, real state showed the biggest growth.


Profit of Tallinna Kaubamaja Grows by almost Half in 2007

Feb 25
- The net profit of the Estonian retail group Tallinna Kaubamaja grew by nearly 50 percent year-on-year in 2007, reaching 411.4 million kroons.
Sales revenue for the period was 5.874 billion kroons, marking an increase of 39 percent over 2006. The sales and profit indicators for 2006 do not include the results of the car trade business segment.
As of 31 December 2007, the balance sheet total of the Tallinna Kaubamaja group amounted to 3.04 billion kroons, having increased by 0.5 billion kroons since the end of 2006. The rate of increase in assets and owners' equity was 20 percent and 30 percent, respectively.





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