Estonian Review: July 19-25, 2006

28.07.2006

FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS
SURVEYS
CULTURE AND EDUCATION
IN MEMORIAM

FOREIGN NEWS

Estonian President Sent Condolences to Indonesian Counterpart

Jul 19 - President Arnold Rüütel sent a message of condolences to the President of Indonesia, Susilo Bambang Yudhoyono, on the occasion of the earthquake and tsunami that hit the island of Java.

"It was with deep sorrow that I learned of the earthquake and the subsequent tsunami that brought destruction and loss of lives to the southern part of Java island in Indonesia," the letter said.

"I wish you and your people strength in recovering from this tragedy," Rüütel said.

On his own behalf and on behalf of the Estonian people, the president expressed his condolences to the families and close ones of the victims.

Estonian Rescue Board Official Helping Lebanon Refugees in Cyprus

Jul 25 - The Head of the Foreign Relations Office of the Estonian Rescue Board, Jevgeni Jutkevitsh, has headed for Cyprus to join the European Commission operation to help people fleeing hostilities in Lebanon.

Jutkevitsh's task is to help nationals of other countries who have fled the war zone make their way home.

According to Jutkevitsh, the coordinating team of the European Union has in four days helped already 39,000 people evacuated from Lebanon leave Cyprus.

Estonian Woman Evacuated from Lebanon Arrived in Stockholm

Jul 20 - An Estonian woman evacuated from Lebanon arrived in the Swedish capital Stockholm via Syria.

The young woman arrived in Stockholm from Damascus on board of the Swedish evacuation flight that brought also Finnish nationals from the area of conflict.

The woman, whose location was to the north of Beirut, said she is in good health but tired.

The Foreign Ministry has also contacted another Estonian citizen in Lebanon, who is living there on a permanent basis and does not wish to evacuate. That woman and her child have fled the conflict area to the mountains and are feeling safe enough.

In connection with the tensions that have flared up in the region the Estonian Foreign Ministry advises residents not to travel to Lebanon, the West Bank and the Gaza strip and urged people to be very careful when traveling to Syria and Jordan.

To ensure rapid consular protection, the ministry is urging residents to register on the ministry's web page at http://www.vm.ee/registreerumine/ before traveling abroad.

Also staying in the region of the conflict that erupted last week are Estonian members of the UN peacekeeping mission Capt. Madis Morel and Maj. Ove Voore.

Estonian President Appointed Two Ambassadors

Jul 21 - Estonian President Arnold Rüütel appointed two ambassadors representing the country in Malta, and in the Netherlands and the Organization for the Prohibition of Chemical Weapons, respectively.

Andres Tomasberg was appointed Estonia's ambassador extraordinary and plenipotentiary to Malta residing in Rome, while Gita Kalmet was appointed ambassador extraordinary and plenipotentiary to the Netherlands residing in the Hague.

Besides, the president appointed Kalmet Estonia's envoy to the Organization for the Prohibition of Chemical Weapons in the Hague.

The president also recalled the present Estonian ambassadors in the respective posts.

Barroso Backed Tallinn's Initiative to Introduce the Title of Green Capital of Europe

Jul 21 - European Commission President Jose Manuel Barroso has expressed support in a letter to Mayor of Tallinn Jüri Ratas for the idea to introduce the title of Green Capital of Europe.

Barroso said this excellent initiative should encourage local governments even more to improve the environment of towns and cities and aspire toward healthier and more sustainable cities.

The Commission president said the proposal converged with the EU's Thematic Strategy on the Urban Environment.

Barroso called ensuring broad resonance for the idea in European cities especially important, saying this would make the Tallinn initiative an efficient measure in the strive to develop cities.

Ratas, the mayor of Tallinn, called the letter from Barroso a big recognition for Tallinn and the whole of Estonia.

Ratas made a proposal to the Commission early this year to introduce the title of Green Capital of Europe or a respective prize, which would be awarded annually to the European city that has excelled the most in protection of the environment.

Forty cities have joined the call by now.

DEFENCE NEWS

Estonian Troops Started Looking after Security in Southern Afghanistan

Jun 20 - Estonian infantry unit ESTCOY-2 arrived in Lashkargah, capital of Afghanistan's Helmand province, in order to take part in missions to ensure security in the town and its environs.

The commander of the Estonian unit, Ltn. Ain Tiidrus, said the tasks were manageable for the Estonian personnel and the men's mood was positive.

The unit, which had previously been based in Gereshk town 30 kilometers to the northeast of Lashkargah, was engaged aside from patrols also in ensuring the base's security and contributed personnel to a rapid reaction unit.

The Estonian contingent uses four Finnish-made Pasi wheeled armored personnel carriers during operations and is performing its duties in Lashkargah alongside British and Afghanistani soldiers.

"The town is the key hub of the province and ensuring security here is very important for the government of Afghanistan," Ltn. Col. Raivo Tamm, Head of the Estonian contingent in Afghanistan, said.

Tamm said the provincial government had been very satisfied with how quickly the coalition troops reacted when reports came in about Taliban activity to the south of the provincial capital.

"But the balance of forces in Lashkargah is still firmly in favour of the Afghanistani government and coalition troops, and the Estonians patrolling on Pasi vehicles are making a big contribution to it," Tamm said.

Also an Estonian observation and patrol team and an EOD unit have been deployed in Lashkargah.

In six southern provinces of Afghanistan the coalition troops operate under the command of a multi-national brigade. Subordinated to the same brigade is the British battle group serving in Helmand province that the Estonian contingent is a part of.

The strength of the Estonian contingent is set to increase to 120 men by the end of the year.

Last year the parliament extended participation of Estonian soldiers in the operation in Afghanistan by two years, with up to 150 soldiers to be sent to that country at any one time.

The Estonian defence forces have taken part in the operation in Afghanistan since 2003.

Estonia to Contribute 40 Troops to NATO Reaction Force

Jul 21 - The Estonian Defence Ministry has prepared a draft according to which an Estonian unit of up to 40 personnel would be part of the NATO Reaction Force (NRF) next year.

Taimar Peterkop, Deputy Head of the Department for Operations and Crisis Management at the Defence Ministry, said the mandate was being asked on unspecific terms because with NRF it was never clear where the force could be used.

"Usually the parliament would grant a mandate for some specific operation, but in the case of NRF we do not know where and how it would be used," Peterkop said.

The nature of the operations may vary from peacekeeping to helping earthquake victims, for instance.

The decision about deployment of the NRF has to be made by the North Atlantic Council.

Until the beginning of next year the Estonian contingent in NRF is an EOD team based in the North Estonian town of Tapa. Earlier the navy's flagship, the Admiral Pitka, has performed a similar mission, whereas starting from the new year an Estonian military police unit will be part of NRF.

DOMESTIC NEWS

Parties Leave Ergma, Ilves on Shortlist of Presidential Candidates

Jul 19 - Five parties searching for a common candidate for electing the next Estonian president in parliament left deputy speaker of the Riigikogu Ene Ergma, of the Res Publica party, and Socialist MEP Toomas Hendrik Ilves on their list.

The parties' previous shortlist had consisted of four candidates, of whom Tartu University Rector Jaak Aaviksoo and businessman Jaan Manitski were dropped.

Ilves Would Seek to Rally New EU Members when Becoming the Head of State

Jul 19 - Estonia’s presidential hopeful Toomas Hendrik Ilves has said that if elected as the Head of State, he would work toward better cooperation between the new members of the EU.

"Personally, it seems to me that there is no common vision among the new EU members right now on how to go ahead, and there's a clear feeling that the new members ought to do something together," Ilves said.

Ilves said that even though the Estonian president doesn't have far-ranging powers, he has discovered that the ability to convince people is not less important.

"That is also the role that I've been playing in the European Parliament, to rally these forces, to cope a little better within the European Union, so that we weren't so fragmented there. That's where the ability to convince people counts," Ilves, vice chairman of the European Parliament's Foreign Affairs Committee, said.

Commenting on opinion surveys which show him as one of the two top candidates for the next Estonian president alongside incumbent Arnold Rüütel, Ilves said that apparently the things that he has written or said matter to the people.

Ilves said he is prepared to stay on as candidate in the electoral college vote should the parliamentary vote on the president produce no result. If the parliament chooses someone else as Head of State, it will be good too because it means that a compromise is found and the Constitution abided by, said Ilves.

Number of Recorded Crimes Down in Estonia in H1

Jul 19 - A total of 24,252 criminal offences were recorded in Estonia during the first half of 2006, 3,000 fewer than in the same period a year ago, according to the criminal procedure register.

Alongside a ten percent reduction in the overall number of crimes also the number of grave crimes against individuals saw a sharp decline, with the number of murders dropping 25 percent and that of robberies 27 percent.

Justice Minister Rein Lang said economic growth and lower unemployment were one of the reasons behind the lower crime rate, specifically the decline in the number of thefts.

Ethnic Estonians Number Almost 923,000 in 2005

Jul 24 - There were 922,989 ethnic Estonians among the Estonian population at the beginning of last year, down by about 40,300 from 1989 when 963,282 Estonians lived in their native country; it appears from the yearbook the Statistical Office has brought out.

Estonians' share of the population has meanwhile risen.

If according to the 1989 census ethnic Estonians made up 6,153 of 10,000 population, then last year the corresponding figure was 6,850.

Russian residents of Estonia numbered 346,339 at the beginning of 2005 compared to 474,834 in 1989. They made up 3,033 of 10,000 population 16 years ago and 2,570 last year.

The third-largest ethnic group of the Estonian population, Ukrainians, numbered 48,271 in 1989 and 28,456 in 2005. Their share per 10,000 population was 308 and 211, respectively.

Sixteen years ago there were 27,711 and last year

16,487 Belarusians in Estonia, who made up respectively 177 and 122 of 10,000 population.

The fifth-largest ethnic group is Finns, who numbered 16,622 in 1989 and 11,080 at the beginning of last year.

There were 106 Finns per 10,000 population in Estonia in 1989 and 82 in 2005.

The Estonian population, which totalled 1,565,662 in 1989, had shrunk to 1,347,510 by the beginning of 2005.

ECONOMIC NEWS

Currency Rates in Kroons
(Bank of Estonia) 

Moody's Views Estonia's Outlook as Positive

Jul 20 - Estonia's A1 rating and the government's long-term bonds have a positive outlook, the international ratings agency Moody's Investors Service said in its annual report.

The A1 rating and positive outlook on the government's long-term bonds reflect the nation's unparalleled success in economic stabilization and impressive structural transformation, especially among its fellow EU transition countries, the report says.

At the time of adoption of the common euro currency, which would mean elimination of currency transfer risk, Estonia's country ceilings would be raised to the euro zone's Aaa, Moody's said.

The agency observed that the real gross domestic product has been growing faster than expected, reaching almost 10 percent in 2005. "Rapid credit expansion, booming asset prices, and the stubbornly large external current account deficit have combined to signal growing economic imbalances that could threaten macroeconomic stability if not properly contained," the author of the report, Vice President Nina Ramondelli, said.

"Moody's do not view possible delay of Estonia's euro adoption as a problem, from the point of view of rating upgrading or lowering they attach importance to our continued conservative budget policy and reduction of risks relating to rapid growth," Head of the Bank of Estonia economic policy subdepartment Ülo Kaasik said.

Hansabank Raised Estonian, Latvian Economic Growth Forecasts

Jul 20 - Hansabank has raised Estonia's economic growth forecast for this year to 9.4 percent from 8.7 percent and the Latvian forecast, by one percentage point to 10 percent, leaving the Lithuanian forecast unchanged at 7.3 percent.

In view of strong domestic demand, the bank raised inflation expectations by 0.3 percentage points to 4 percent for Estonia and to 3.6 percent for Lithuania. The Latvian inflation rate forecast of 6-6.3 percent was not changed.

Estonia's CPI up 4.4 pct on Year in Q2

Jul 20 - Goods and services were on the average 4.4 percent more expensive in Estonia in the second quarter of this year than at the same time last year, the Statistical Office reported.

The consumer price index was up by 1.5 percent against Q1. Food prices rose 1.4 percent, manufactured goods 1.5 percent and services 1.4 percent quarter on quarter.

The change in the CPI in the second quarter compared to the first quarter was mainly the result of increases in motor fuel prices, housing expenses and vegetable prices.

Estonia's Industrial Producer Price Index up 4.6 pct on Year in June

Jul 20 - The Estonian producer price index in June was up by 4.6 percent compared to June 2005, the Statistical Office said.

Compared with May, the producer price index increased by 0.5 percent.

In power supply, the annual increase in producer prices was 1.4 percent, while in comparison with May prices were unchanged. In mining a year-on-year increase of 6.3 percent and a month-on-month increase of 0.5 percent was recorded.

In manufacturing production grew 4.8 percent more expensive in annual comparison and 0.5 percent in comparison with May.

The export price index in June 2006 compared to June

2005 was 3.9 percent higher, and the import price index grew 4.4 percent year-on-year.

Estonia's Mobile Penetration Rate 108-109 pct

Jul 20 - The mobile penetration rate in Estonia was 108-109 percent at the end of June, according to the country's largest mobile communications company, EMT of the Eesti Telekom group.

The penetration rate crossed the 100 percent mark in 2005.

EMT puts its market share at 47 percent, going by the number of active SIM cards. Besides EMT, Elisa and Tele2 have their own mobile communications networks in Estonia.

Estonian Shipper Tallink Completed Silja Acquisition

Jul 19 - Tallink Scandinavian, a subsidiary of the Estonian shipping concern Tallink Grupp, completed the acquisition of 100 percent of shares in the Finnish shipper Silja Oy AB agreed upon last month.

The agreement was earlier endorsed by shareholders in Tallink Grupp and approved by the Estonian, Finnish and Swedish competition watchdogs.

In connection with the deal, Silja Holdings Ltd. today subscribed five million Tallink Grupp shares through a non-monetary contribution. The non-monetary contribution to the stock capital was 7.87 million shares in Silja Oy Ab at a value of 18.85 million euros.

Tallink Grupp CEO Elected Chairman of Silja Board of Directors

Jul 19 - The Tallink Grupp subsidiary Tallink Scandinavian as the sole shareholder in the Finnish shipper Silja has elected the group's chief executive Enn Pant chairman of the Silja board of directors.

Antti Pankakoski will carry on as the CEO of Silja, the group said.

The board of directors includes besides Pant Ain Hanschmidt, Keijo Erkki Mehtonen, Andres Hunt, Lauri Kustaa Aima and Ashwin Roy.

Tallink Scandinavian today concluded the acquisition of 100 percent of shares in Silja Oy AB agreed upon in June.

E-bills Make up 9 pct of Bills Sent in Estonia

Jul 21 - Roughly a quarter of a million bills or 9 percent of the 2.7 million bills sent monthly to private individuals in Estonia are electronic.

As lately as last October e-bills made up 6 percent of all bills.

Mait Sooaru, managing director of the Itella company that operates the electronic settlement environment www.arved.ee, said Itella currently sends approximately 140,000 e-bills a month which in June accounted for 9.1 percent of all bills sent out by the company. Itella handles about 40 percent of all bills in Estonia.

According to Sooaru, Estonia is one of the leaders in Europe in terms of electronic billing. "Also Norway, Germany, Iceland, Finland and Sweden boast above-average penetration," he said.

Euromoney Named Hansabank Best Baltic Bank

Jul 17 - The leading journal of the world's capital and money markets Euromoney has named Hansabank the best bank in the Baltic region as well as in Estonia and Latvia separately.

Euromoney Awards of Excellence 2006 published in the July issue of the magazine rates the world's best providers of financial products and services on the basis of interviews with experts and analysts. The survey covered 110 financial institutions across the world.

The investment bank Suprema Securities was picked as Best Investment Bank and Best Equity House in the Baltic region.

German Retailer Lidl Dropped Plan to Enter Estonian Market

Jul 19 - The German retailer Lidl which for the last few years has been actively buying real estate in Estonia has dropped the plan to enter the Estonian market and is going to sell the properties.

"Lidl has reviewed its strategy because the Estonian market is too small," the head of the retailer's Finnish operation, Antti Tiitola, said. In his words, competitors are in no way connected with the decision. Tiitola gave no reasons for why Lidl decided at all to expand to Estonia.

Most of Lidl's Estonian employees have quit by mutual agreement, but some still remain on the payroll, Tiitola noted.

Hotels in Pärnu Accept More Guests This Summer than in 2005

Jul 24 - Major hotels in the popular southwest Estonian sea resort Pärnu have seen an increased number of bookings in the current exceptionally hot and sunny summer, with the average hotel occupancy rates rising specifically in June and August.

July is the month when hotels in Pärnu are accepting the largest number of visitors every year.

Scandic Rannahotell expects to post an average occupancy rate of 96 percent for July, and Best Western Hotel Parnu between 97 and 98 percent. Strand SPA & Konverentsihotell is forecasting a rate of 95 percent, or 7,000-8,000 visitors, which is on a par with July 2005.

SURVEYS

Survey: Estonian Residents See Ilves, Rüütel as Having Equal Chances in Presidential Race

Jul 19 - According to a recent survey by the Emor agency, people believe almost equally in the chances of MEP Toomas Hendrik Ilves and incumbent President Arnold Rüütel to become the next Estonian president.

Those believing that Ilves is about to win made up 38 percent and those seeing Rüütel as the favorite made up 35 percent of the respondents in the survey.

Ethnic Estonian respondents are clearly in favor of Ilves, with 52 percent of that voter group believing in his victory versus Rüütel's 27 percent in the Emor survey, while 53 percent of non-Estonians expect Rüütel to continue and only 9 percent believe that Ilves will win. Ilves is more popular among 15 to 34 year-olds (46 percent), while Rüütel is enjoying the greatest popularity among the age group 51-72 (42 percent).

The final candidate for the parliamentary round of voting is scheduled to be selected by the parties on August 3.

Riigikogu will hold the first round of election on August 28, while the Electoral College would convene some time in late September.

Survey: EUR 640 Monthly Pay Would Secure "Normal Life" in Estonia

Jul 24 - Despite gross monthly pay averaging almost 9,000 kroons (EUR 575), more than a fourth of Estonians find one should net at least 10,000 kroons a month for a "normal life".

The survey commissioned by the daily “Postimees” was carried out by TNS Emor pollsters with the aim of finding out Estonians' opinion on how big one's monthly net wages should be to be able to lead a "normal life." It was up to each respondent to decide what "normal life" constituted, the paper observes.

Some 28 percent of the more than 500 respondents aged 15-74 found one needs a net monthly income of 10,000 kroons.

In the opinion of 24 percent of the polled, it is sufficient to pocket between 5,001 and 9,999 kroons a month, and 16 percent think one cannot manage well with an income below 15,000 kroons.

Data by the Statistical Office show that average gross monthly pay in the first quarter of 2006 was 8,591 kroons and only a few percent of wage earners received 10,000 kroons a month in 2004. Last year the average gross monthly pay was the highest in Tallinn at 9,462 kroons and the lowest in the northeastern Ida-Virumaa region at 6,057 kroons, the daily notes.

CULTURE AND EDUCATION

Hiiumaa Homecoming Festival

Jul 19 - 23 takes place Hiiumaa Homecoming Festival that is dedicated to classical music. Different concerts are held in the Castle of Suuremõisa, in Kärdla Church, in the Käina School of Fine Arts and in the Hiiumaa Museum in Kärdla. The works of Mozart, Beethoven, Dohnanyi, Beethoven, Schumann, Faure, Poulenc, Debussy, Pärt, Brahms, Enescu, Martinu, Jaicob, Tobias, Telemann are performed by musicians from all over the world.

Record Number of People Visited XIV Viljandi Folk Music Festival

XIV Viljandi Folk Music Festival took place from 20 - 23 July in the town and County of Viljandi. This year’s festival theme enfolded all accordion-type instruments like diatonic accordions, harmonicas, boxes, concertinas, karmoshkas etc. Viljandi Festival’s traditions of focusing on different instruments each year was continued this summer through workshops and exhibitions dealing with different accordions and their history. Most of the best Estonian players gathered to play together in concerts and spontaneous jam-sessions. Performers from other countries were also chosen partly by the “accordion-criteria” in order to introduce as many different traditions as possible. Four days and nights a record number of visitors could enjoy the best traditional music, atmosphere and happiest bunch of people in the world. More than 300 performers, a quarter from outside Estonia were participating in this festival, who gave more than a hundred concerts in Viljandi and in Viljandi County. There were five inside concert venues and five open-air stages in the town, traditional workshops, handicraft yard, fairy-tale chamber and instrument fair.

August DanceFestival

International contemporary dance festival August DanceFestival” is held from 2 July till 12 August in Tallinn. This year the festival presents first and foremost the works by young and promising European choreographers. The festival takes place in the Hall of St Canute’s Guild and participants are coming from Estonia, Portugal, Denmark, France, and UK.

Flower Garden Games

The traditional birthday party of the Kadriorg Palace in known as the Flower Garden Games and this year it took place on July 22. This event was aimed at children between the ages of five and eleven and their parents. This year's festivities were dedicated on antique culture, from where the founders of the palace drew inspiration from.

IN MEMORIAM

Mati Jostov

CEO of Estonia's Natal Oil Shale Mining Co

Jul 25 - Mati Jostov, chairman of the board of Eesti Põlevkivi (Estonian Oil Shale), was killed when a car driven by him veered off the road.

Police said that the driver's seat belt was not fastened and he was in the car alone. The accident happened on a straight, slightly rising stretch of the road. There was no evidence of a collision with some animal and the reason of the crash is not clear yet.

For the time being, Eesti Põlevkivi will be run by two members of the board, Enn Loko and Lembit Kaljuvee.

Jostov was a forestry graduate from the Estonian Academy of Agriculture. He had worked at several banks and as administrative director of the national power company Eesti Energia. In 1999 he became chairman of the board of Eesti Polevkivi. He also served as president of the Estonian Cyclists Union.

Jostov joined the Center Party in 2002. He ran in the 2003 parliamentary elections and secured a seat but gave up his mandate. He quit the party in autumn 2003.