Estonian Review: July 12-18

18.07.2006

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

FOREIGN NEWS

Vice Chair of Parliament Committee: Estonia Needs Stronger Presence in Middle East

Jul 18 - Against the backdrop of growing tensions in the Middle East, it is clear that Estonia needs stronger presence in the region, Marko Mihkelson, vice chairman of the parliament's foreign affairs committee, said.

"The Middle East is one of the strategically most important regions of the world and it has to be regretted that Estonia has been unable to open its diplomatic representations there," Mihkelson said. "An embassy of our own would definitely allow us to get to know more about what is going on and in this way to be a more reliable partner in shaping the EU's policy vis-à-vis the Middle East," Mihkelson added.

"And if we wish that the foreign policy topics which are important for Estonia, such as relations with Russia and the neighbourhood policy, were dealt with in the EU, we must ourselves take an active part in dealing also with those matters of foreign policy which at first sight are remote to us but which play an important role for both the EU and the whole world," he said.

Estonian FM Attends Launch of Turkish Oil Pipeline

Jul 13 - Estonian Foreign Minister Urmas Paet attended the inauguration of the Baku-Tbilisi-Ceyhan oil pipeline in Turkey.

The minister hailed the successful launch of the pipeline, noting that it is a strategic transport channel for tapping into Caspian energy resources and ensuring their export. "Estonia attaches importance to projects which contribute to increasing the energy supply reliability of the European Union, including diversification of transport corridors," he said.

According to Paet, Caspian countries are becoming significant energy consumers and Turkey is a key country of transit in this process. "We find it necessary for the EU to hold dialogue and cooperate with all the major energy supply and transit countries," the Estonian minister said.

Turkish, Azeri and Georgian heads of state were joined by foreign and economy ministers from around the world and representatives of international organizations for the inauguration ceremony.

Estonian Politicians Stress Need for Common Energy Policy

Jul 17 - Estonian politicians find that the European Union badly needs a common energy policy to ward off Russia's obvious attempts to use energy supplies for political pressure.

Vice chairman of the parliamentary Foreign Affairs Committee Marko Mihkelson, who is drafting an energy security report for the Parliamentary Assembly of the Council of Europe, is convinced that Russia is seeking to influence neighbouring countries both economically and politically by manipulating energy supplies. "In the course of making the report I've visited Poland and Georgia, and these trips just confirm this," he said.

According to Mihkelson, Estonia and the other Baltic countries too face the threat of Russia putting pressure on their economies through energy supplies, as their natural gas supplies and distribution networks are controlled by the Gazprom monopoly. Mihkelson said he hopes his report will help launch a debate on European energy security at least on the Council of Europe level.

The standing Foreign Affairs Committee too has addressed the issue of Estonian energy security and a detailed analysis of the risks posed by dependence on Russia energy-wise should be ready by the fall, the lawmaker said. The committee will then submit concrete recommendations to the government.

Toomas Hendrik Ilves, vice chairman of the European Parliament's Foreign Affairs Committee, agrees that developing a common energy policy is a key issue for the EU in the coming years. In Ilves' opinion, it is high time for Estonia and the EU to think about what can be done to hedge energy dependence-related risks. "At the very least, I would like to see the EU establish the same practice in gas supply as is used in trade negotiations: one negotiator representing the entire union. Russia's 'divide and rule' principle wouldn't then work any more," he said.

Estonia Giving EUR 50,000 to South Ossetia

Jul 18 - The Estonian Foreign Ministry has decided to support with 782,330 kroons (EUR 50,000) a development cooperation project to help the rehabilitation of South Ossetia and neighbouring areas.

Under orders signed by Foreign Minister Urmas Paet, the sum would be provided via the Organization for Security and Cooperation in Europe (OSCE) in two equal parts of 391,165 kroons each respectively in 2006 and 2007.

Estonia wishes to support projects carried out under the supervision of the OSCE's Georgia mission in the area of economic development in South Ossetia and adjacent areas. The projects would be specifically about the creation and renovation of infrastructure in the supply of drinking water and energy, but also of schools and medical establishments. The projects are also aimed to create favourable conditions for the development of business and thus improve the well being of the local population. Socio-economic development of the region will be conducive to finding a solution to the conflict on the political level and promoting the peace process, the ministry said.

An OSCE donors conference in Brussels on June 14 last year presented to the public projects directed toward South Ossetia and neighbouring areas and called on governments and organizations to contribute to the common goal.

The conflict in South Ossetia has lasted since the break-up of the Soviet Union in 1991.

Jul 12 - Member of the European Parliament's Foreign Affairs Committee Tunne Kelam from Estonia urged the EU's Finnish presidency to tie economic interests to human rights and European values in the bloc's relations with Russia.

The Estonian lawmaker called on Finland to strive in relations with Russia for balance between economic interests, on the one hand, and human rights and European values, on the other, as in his opinion human rights must not be used as change for energy supplies.

According to Kelam, Russia makes a problematic partner in view of numerous current negative developments and in such a situation it is not enough if representatives of the EU periodically express concern about human rights and civic freedoms in that country.

In his opinion, the foreign policy of the EU needs to establish a clear connection between realpolitik and protection of common European values, and the bloc should not intensify cooperation in business ties or visa policy in case the Russian authorities continue ignoring serious backsliding in the sphere of human rights.

Estonian Representations Abroad Issue Over 50,000 Visas in H1

Jul 15 - The number of visas issued by Estonian representations abroad jumped in the first half of this year to 54,061 compared to 46,468 at the same time last year. In June the number of visas issued increased by one-third, from 10,534 in 2005 to 13,236. The representations in St. Petersburg, Moscow and Kiev issued the most visas, followed by Pskov, Helsinki and Ankara.

The head of the Foreign Ministry's consular department, Jaanus Kirikmäe, said the large number of visas issued suggests a growing interest in Estonia. "We are delighted to see the number of people travelling to Estonia grows from year to year, and we are doing everything we can for people to be able to hand in their visa applications and get a reply as speedily and easily as possible," Kirikmäe said.

Applicants themselves can do much to avoid trouble, he pointed out: they just should find out in advance which documents they are required to submit and carefully check that their application forms are filled correctly, papers in order and passports valid. This way, unnecessary misunderstandings and delays, which more often than not lead to consuls being accused of lacking human kindness, can be avoided, he said. "A consul can not and must not breach the law and rules. A consul's humaneness consists not in doing whatever a visa applicant wishes but in giving instructions what can be done and how it should be done for the visa application to be processed speedily and favourably," Kirikmäe said.

Estonian President Sends Condolences over India Bombings

Jul 12 - President Arnold Rüütel today sent a message to his Indian counterpart Abdul Kalam expressing condolences on behalf of Estonian people and on his own behalf over the deadly bombings in Mumbai.

"It was with deep sorrow that I learned about the horrendous bomb blasts," Rüütel said. There is no justification to terrorist attacks, such acts are impermissible and incomprehensible to the human mind, the president added.

Estonia Looking For Ways to Bring Home Citizen from Lebanon

Jul 18 - The Estonian Foreign Ministry is in collaboration with other EU member states looking for possibilities to bring home a young Estonian woman staying in conflict-hit Lebanon.

A spokesperson for the ministry said the young woman staying in a place north of Beirut, outside the immediate danger zone, had expressed the wish to leave the country engulfed in a conflict with Israel. "Right now we're working closely with Finland, Germany and Greece to find the best and fastest possibility to bring the woman out," the spokesperson said.

DEFENCE NEWS

Estonian Troops Detain Suspects, Seize Weapons in Iraq

Jul 14 - Estonian light infantry platoon ESTPLA-13 deployed in Iraq detained in the early hours of July 13 seven suspected terrorists and seized weapons during an operation near the town of Sab-al-Boor north of Baghdad.

Estonian soldiers confiscated from the suspects nine automatic rifles and four machine guns, as well as ammunition and hand grenades. The aim of the operation was to prevent attacks against Sab-al-Boor and international coalition forces. Estonian unit was supported by US helicopters.

"The operation was a success thanks to precise planning and expert use of available information. ESTPLA-13 showed itself in the last operation as a professional unit, despite having been in Iraq for only slightly longer than one month," the head of the Estonian contingent in Iraq, Maj. Aron Kalmus, said.

The 34-strong infantry platoon under the command of Lt. Meelis Jõemaa is trained to carry out foot and motorized patrols, searches, and escorting and guarding duties.

The unit is serving near Baghdad as part of the 1st Brigade Combat Team of the US Army's 4th Infantry Division.

DOMESTIC NEWS

Frattini Positive on Estonia's Efforts to Join Schengen

Jul 18 - European Commission Vice President Franco Frattini said Estonia has sufficient administrative capacity to join the Schengen legal space and that so far the results of the evaluation of Estonia's readiness for accession to the Schengen agreement have been positive.

Speaking in Tallinn, Frattini, the EU commissioner for justice, freedom and security, said the Schengen evaluation reports on Estonia have been positive.

He said Estonia has shown good capabilities to use the EU funds provided for accession to the Schengen agreement, as at this point expenditure plans cover already 54 percent of the funds.

As Interior Minister Kalle Laanet has said, Estonia is already prepared to arrange the procurement of essential technology, which means that six or seven more percent of the funds would be used, Frattini said.

Another indication of Estonia's capability to use funds is the fact that Estonia has asked the Commission's permission to use some of the funds earmarked for 2007 already this year. "The first evaluation mission (to Estonia) was very positive, but we need to evaluate eight new member states. "At the same time, I'm not concerned about Estonia," the commissioner said.

Frattini expressed hope the Commission will be able to meet the established goal and complete the second generation of the Schengen information system (SIS II) by the end of next year at the latest. He said he is confident that the European Council of Ministers and the European Parliament will agree about the legal basis for SIS II in October and then intensive work to implement the SIS II can start.

Estonian Rural Life to Be Allocated EUR 895 Mln in 2007-13

Jul 13 - The Estonian government has endorsed the Estonian rural life development strategy for the years 2007-2013, on the basis of which rural life will get a total subsidy of nearly 14 billion kroons (EUR 895 mln) during the seven years, according to preliminary data.

Agriculture Minister Ester Tuiksoo said it was a document that established the trends in Estonian rural life for the next seven years. "A major aim of the strategy is to contribute to the sense of security of people connected with agriculture and rural life," Tuiksoo added. The minister said that the experience of how European Union subsidies have been used so far showed that people living in the countryside were capable of improving the local living standards with the subsidies.

The strategy is directed at raising competitiveness of Estonian agriculture and forestry, maintenance of agricultural lands and protection of the environment, raising the quality of life in rural areas and diversification of rural enterprise, bearing in mind the respective aims of the European Union.

In the years 2007-2013 member countries of the European Union will receive subsidies via the European Agricultural Fund for Rural Development - EAFRD.

The strategy endorsed by the government will in the near future be presented to the European Commission upon which a rural life development plan will be drawn up in cooperation with social partners.

Estonian Govt Endorses Merger of Public TV, Radio

Jul 13 - The Estonian government approved a national broadcasting bill, which means merger of the public service television and radio.

The national broadcasting corporation will be established as legal successor of Eesti Televisioon (Estonian Public Television) and Eesti Raadio (Estonian Public Radio) without discontinuing the existing legal entities.

According to the bill, the highest steering body of the national broadcasting corporation will be a council, which will plan its activity, make management arrangements and supervise the work of the board. The council will consist of 12 members of parliament representing party factions proportionately. The line-up of the council for a term of five years as proposed by the standing Cultural Committee is to be confirmed by the parliament.

Editor-In-Chief of Estonia's Largest Weekly to Quit

Jul 17 - Tiina Kaalep is about to leave her post as editor-in-chief of Eesti Ekspress, the largest weekly newspaper in Estonia, as she will take up residence in the Portuguese capital Lisbon where her husband has been appointed ambassador.

Kaalep has been working as editor-in-chief of Eesti Ekspress since 2002. The popular weekly had an average print run of 45,600 copies per issue in June, according to the Estonian Newspaper Association.

Forest Fire Rages on 1,000 Hectares in NE Estonia

Jul 17 - Efforts are continuing for the sixth day running to put out a major forest fire that spread over an area of some 1,000 hectares in the territory of the Illuka rural municipality in northeastern Estonia over the weekend.

In addition to Estonian rescue and defence forces personnel also 30 members of Finland's international rescue team have arrived to help Estonia tackle the blaze.

The chief of the rescue works, Mati Raidma, said the cool and quiet night between Sunday and Monday allowed to secure the perimeter of the blaze area and that by now hose lines have been laid out on an estimated 60 percent of the perimeter's length.

ECONOMIC NEWS

Currency Rates in Kroons
(Bank of Estonia)

Almunia: Interpretation of Inflation Criterion Possible

Jul 14 - Speaking at an euro zone enlargement seminar at the Estonian Finance Ministry Finance Commissioner of the European Union Joaquin Almunia underlined the need of sticking to the letter of the criterion, but on the other hand admitted there was room for interpretation in applying the criterion.

"The inflation criterion has to be taken literally, and in this point the agreement speaks about European Union countries, not of countries of the euro zone," Almunia said at the seminar.

At the following press conference Almunia said that there was room for interpretation of the criterion if at least one of three inflation criterion reference countries had negative inflation. So far the European Commission has been firm in there being no room for interpretation of the criterion.

For Estonia, the most critical precondition in accession to the euro zone is meeting of the inflation criterion. As of this May the inflation criterion was 2.6 percent. In June the inflation rate in Estonia was 4.3 percent.

Estonia meets all the other requirements of accession to the euro zone.

S&P Cuts Estonia's Rating Outlook to Stable

Jul 17 - The international ratings agency Standard & Poor's has cut the outlook on Estonia's sovereign rating citing a delay of the country's euro adoption plans.

While the agency affirmed the long-term and short-term credit ratings of respectively A and A-1, the rating outlook was changed to stable from positive.

The agency said the near-term prospects for Estonia's accession to the European Monetary Union had receded due to the higher inflationary trend rooted in buoyant domestic demand as well as in higher-than-expected global energy prices. "The ratings themselves are however supported by Estonia's strong track record on fiscal control, competitive economy, and the prospect of adopting the euro by 2010," S&P credit analyst Eileen Zhang said.

Despite Estonia's unstable governments, the country's successful budget policy has kept its foreign debt extraordinarily low, the agency observed. High current account deficits are also a weak point for Estonia, S&P said. "As euro adoption is likely to be delayed, risks posed by significant external imbalances would be a major rating factor," the agency said.

S&P revised Estonia's rating outlook to positive in July 2005, naming better-than-expected macroeconomic performance and what at the time were good prospects for speedy entry into the euro zone as the reasons for the outlook upgrade.

Estonian State Budget Revenue EUR 128 Million Higher Than Expenditures

Jul 13 - The Estonian Finance Ministry said 30.8 billion kroons (EUR 197 mln) revenue was paid into the state budget in January-June this year, accounting for 50.2 percent of the revenue target of this year's state budget.

As of the end of June, revenue paid into the state budget was nearly two billion kroons higher than expenditure.

Compared with the first six months of 2005 intake of the state budget increased by 19.2 percent with 25.0 billion kroons of revenue paid into the state budget by the end of June.

Expenditure to the tune of 28.9 billion kroons, or 47 percent of the target for 2006, was made in January-June.

The sum total of tax revenue in H1 totalled 24.2 billion kroons, 49.4 percent of the target, of these 4.7 billion kroons in June. Compared with last year intake of tax revenue grew by nearly 3.5 billion kroons or 17.1 percent.

During the six months 3.7 billion kroons was allocated to local governments, 23 percent more than in the same period last year.

Intake of value-added tax totalled 8.4 billion kroons in the first half of the year, 56 percent of the target.

As of the end of June inflow of external resources to the Estonian state budget was nearly 2.3 billion kroons, of this 665.7 million kroons from structural funds of the European Union.

Estonian Stabilization Reserve Grows By EUR 10 Mln in Q2

Jul 18 - Estonia's state stabilization reserve increased by 156.8 million kroons (EUR 10 mln) in the second quarter of this year to total 5.77 billion kroons at acquisition cost at the end of June. At market value, the funds reached 5.79 billion kroons at the end of last month, the Finance Ministry said.

Since the beginning of the year 259.6 million kroons have flowed into the stabilization reserve, raising its volume by 4.7 percent. Under the State Budget Act, 92 million kroons was placed in the reserve fund in the first quarter and 128 million kroons in the second quarter.

The stabilization reserve was set up in 1997 with an initial deposit of 701.6 million kroons with the aim of reducing overall economic risks and ensuring the stability of investments generating long-term public gain and the financing of structural reorganizations.

Estonian Govt Sector Debt Contracts in Q1

Jul 13 - The consolidated debt of the Estonian government sector contracted by 440 million kroons (EUR 28 mln) to 7.2 billion kroons in Q1 against the same period last year.

According to the Statistical Office obligations of the government sector declined by 824 million kroons to 3.1 billion kroons. During the same period liabilities of the local governments increased by 379 million kroons to 4.2 billion kroons.

Most of the government sector debts, five million kroons, were long-term debts. The government sector had a total 2.2 billion kroons worth of long-term securities obligations.

Finns Start Environmental Study for Planned Gas Pipeline

Jul 18 - The Finnish company Gasum together with an international research commission has started an environmental survey in preparation for a gas pipeline planned to be laid on the bottom of the Baltic Sea. Gasum project manager Seppo Nurminen said that the commission is seeking to establish the geological properties of the sea bottom for the planned pipeline.

The Finnish-Estonian pipeline to be completed in 2010 at the earliest should rule out the possibility that Estonia's national gas company Eesti Gaas is unable to supply the necessary amount of natural gas to all consumers.

If the results of the survey are positive a decision on the pipeline will be made in 2007 and the construction should start in 2008. The 100 million euro project should be completed by 2010 at the earliest. Along with the environmental survey, a feasibility study will be carried out to determine from which spot on the Finnish coast it will be best to build the pipeline to Paldiski in north-western Estonia.

The initiators and principal backers of the project are the Finns. The Finnish side intends to use the pipeline in peak hours for tapping into storage facilities in Latvia where they keep their gas reserve.

A two-way pipeline would enable Estonia also to buy gas from Finland if necessary and thus increase the reliability of supply for consumers, deputy director of Eesti Gaas'

Baltic Nuclear Power Plant Steering Committee Picks Consortium to Make Geological Analysis

Jul 13 - Leaders of the three Baltic countries' energy companies today picked a consortium of Hidroprojektas, Grota and Artva to make the geological analysis in the framework of the nuclear power plant feasibility study.

The steering committee of leaders of the Baltic energy companies heard a presentation by consultants of the Swiss company Colenco Power Engineering Ltd on improved nuclear technologies, which could be used in the new power plant. Solutions were offered at the meeting for the management of radioactive waste and depleted nuclear fuel. The working group dealing with electric power transmission issues gave an assessment of future mutual links and potential reserve capacities.

Eesti Energia (Estonian Energy) board chairman Sandor Liive said the feasibility study had gotten into full swing and all the work was being done in accordance with the agreed-on activity volumes and the approved schedule.

It was the seventh time for the nuclear power plant steering committee to meet. The next meeting will take place in August in Tallinn.

Leaders of Eesti Energia, Latvenergo and Lietuvos Energija signed a protocol of intent on studying the possibility of building a new nuclear power plant in Lithuania on March 8.

Finnish Competition Authority Grants Permission to Estonia's Tallink to Buy Silja

Jul 12 - The Finnish competition authority granted an unconditional agreement to the Estonian shipping line Tallink to buy the Finnish shipping company Silja Oy Ab. The Estonian Competition Board issued the respective permit on June 30. To finalize the deal it is also necessary to receive a permit from the Swedish competition authority.

Tallink Supervisory Council Decides Terms of New Stock Issue

Jul 14 - Supervisory board of the Estonian Tallink Group re-elected Enn Pant as member of the board, appointed him chairman of the board and decided the terms of a new stock issue.

The council decided to call an extra shareholders' meeting for August 2 when extension of Tallink Group's stock capital will be discussed in order to meet the terms resulting from the deal of acquisition of shares in Silja Oy Ab.

For this purpose the company will issue 28.3 million new shares at 10 kroons (EUR 0.64) par value each. As a result of the stock capital extension the new stock capital will be 1,698 million kroons (EUR 108.5 mln). All shareholders will be entitled to subscribe to the shares in the company equal to the sum total of the par value of their shares.

Subscription to the new shares will take place in Tallinn from August 7 to 21, whereas the board will be granted the right to extend the term of subscription or to annul shares not subscribed to during the subscription period.

The new shares will be issued at 55 kroons a share, of which the par value is 10 kroons and the above par 45 kroons per share.

Tallinn cabs required to have price lists in English

Jul 15 - New rules of the taxi service are in force in Tallinn, which require cabs to display fare lists in both Estonian and English as well as information necessary to passengers including the city's assistance telephone number 1345 which can be accessed round the clock.

Under the new rules, all cabs must have a certified taximeter together with a compatible printer. If the taximeter or printer is out of order the passenger is within his rights to refuse to pay the fare.

New Software Restores Deleted E-Mails

Jul 14 - Estonian Tartu-based Trillian Infosüsteemid (Trillian Information Systems) has worked out new e-mail archival software, Eepos, which archives and systematically saves all e-mails arriving in or sent out from a company.

The software can also be used to save e-mails moving within the company. Trillian Infosüsteemid says the program ensures that all e-mails are saved and that it is possible to find even deleted e-mails.

The Eepos e-mail archival software is intended for small and medium size companies as well as institutions of the public sector.

Trillian Infosüsteemid, a company fully owned by Estonian capital, provides software solutions both for the public as well as the public sector. The company posted a turnover of 3.4 million kroons (EUR 217,000) last year and it has a staff of ten.

Estonian Company Offers Mobile Calls Recording Service

Jul 13 - Mobi Solutions, an Estonian mobile services provider, has brought to the market a new package of services including recording of mobile calls and sending them to an e-mail address.

In addition to the recording of mobile calls the services provided under the "Etsi perekond" (Ets's Family) name make it possible to record your ideas and send the resulting audio file automatically either to your mailbox or your blog, the company said. Accession to the service is free, with the user paying per minute for the service.

Mobi Solutions mainly provides SMS-gateway and m-marketing services. The sales or the company employing 15 was 8.7 million kroons (EUR 556,000) last year.

Elion Has 11,400 Digi-TV Clients

Jul 13 - The Estonian Elion telecommunication firm has 11,400 clients of its digi-TV package. The number of those having acceded to the new service is he highest in Tallinn and its neighbourhood.

Elion started to offer the digi-TV service in mid-April. For the time being digi-TV is available only in Tallinn and its vicinity, Tartu, Pärnu, Kohtla-Järve and Narva, but by the end of the year the reception area will be extended to nearly 100 larger settlements.

Estonian Investors Buy Stake in Lithuanian Telemetry Company

Jul 18 - Ambient Sound Investments, an investment group set up by the Estonian cofounders of Skype, and the investment company InnoCap have acquired a holding in the Lithuanian technology company Connecty. From now on ASI owns 30 percent and InnoCap 25 percent of the Lithuanian company manufacturing data transmission and control terminals. The remaining shares in Connecty belong to the two Lithuanian cofounders of the company and a private investor.

Connecty is the fourth investment by ASI into the IT sector. InnoCap is a Baltic investment company that finances new technology companies with a global potential in the Baltic States, Scandinavia and the Balkans.

Finnish Electronics Co Efore To Move Part Of Production to Estonia

Jul 18 - The Finnish electronics concern Efore which already owns a plant in Estonia's Pärnu is planning to close its Saarijärvi factory and move production to Estonia and China. "We are unable to maintain profitable production in Finland. The costs are too high and furthermore, our customers are in China so we need to be closer to them," CEO Reijo Maihaniemi said.

In January the electronics manufacturer opened in Pärnu a new, 7,200 square meter production facility, which initially gave work to 170 people. The company's aim is to raise the number of employees to 250 by the end of the year.

Efore has plants also in Finland, the United States and China. Production is planned so that each individual facility can manufacture any of Efore's products and systems. The power supplies, DC power systems and inverters designed and manufactured by Efore, and systems incorporating them are used in many different applications.

Efore reported sales of 81.8 million euros for the financial year that ended in October 2005.

Estonian Ports' Freight Flows up Almost 12 Pct on Year In June

Jul 18 - Estonian ports handled in June 4.38 million tons of goods, which is 11.5 percent more than at the same time last year, data by the Statistical Office show.

The ports loaded last month 3.82 million tons of cargoes compared to 3.58 million tons in June 2005. The loading volume grew almost 9 percent month-on-month.

Estonian Muuga Coal Terminal to Extend Rail Branch

Jul 17 - The coal terminal at Estonia's main merchant port of Muuga east of Tallinn is set to invest in the near future 40 million kroons (EUR 2.6 mln) in extending its rail branch. The purpose of the investment is to increase the facility's loading capacity to up to 5.5 million tons a year, the company said.

Budget Airline Ryanair Wants to Start Flying to Tallinn

Jul 18 - Europe's leading no-frills airline Ryanair has turned to the Estonian Ministry of Economy and Communications suggesting a three-way agreement on flights to Tallinn. The three parties to the agreement would be the ministry, the Tallinn airport and Ryanair. The airline is counting on the ministry's help to achieve suitable terms for flying to Tallinn. Estonia is at present the only member state of the European Union where Ryanair does not fly.

Representatives of the ministry and Ryanair will meet at the end of this month to discuss possible cooperation.

Conference Tourism Steps Up In May in Estonia

Jul 14 - Of the total nearly 194.000 tourists that stayed at Estonian accommodation institutions in May 7 percent were conference tourists and 55 percent of them arrived from foreign countries, the Statistical Offices said.

Most of the conference tourists stayed at accommodation institutions in Tallinn (54 percent) and Tartu (10 percent), but organization of conferences outside major cities has also gained in popularity.

Estonia's First Legal Expenses Insurer Granted Operating License

Jul 13 - D.A.S Õigusabikulude Kindlustus (D.A.S. Legal Expenses Insurance), a company in the ERGO insurance group, was issued an operating license by the Financial Supervisory Authority; so far there has been no company specializing in legal expenses insurance in Estonia.

The D.A.S. trademark is represented in 14 European countries.

Estonia's Garment Maker Baltika Signs Contract On Acquiring Ivo Nikkolo's Trademark

Jul 12 - The Estonian garment maker Baltika signed an agreement for the acquisition of rights to fashion designer Ivo Nikkolo's trademark and will as of September 28 take over operation of Nikkolo's three stores in Estonia.

Baltika said Nikkolo would continue consulting development of the trademark.

In the next few years, the Baltika Group is planning to expand the network of Ivo Nikkolo stores also to countries currently covered with other Baltika trademarks, using existing infrastructure and market organizations.

Ivo Nikkolo is a premium class trademark, created in 1994, of a well-known Estonian fashion designer. In addition to three stores in Estonia and several resellers the products are sold also in Finland, Sweden and Denmark. The turnover of Zik-Zak, the company marketing Ivo Nikkolo, totalled 23 million kroons (EUR 1.47 mln) in 2005.

Estonian Garment Maker Klementi Sets Up Subsidiary in Lithuania to Drive Expansion

Jul 17 - The supervisory council of the Tallinn-based garment maker Klementi decided to establish a subsidiary in Lithuania to foster expansion.

The business name of the subsidiary will be UAB PTA Prekyba and it will focus on retail and wholesale of women's apparel and accessories. The subsidiary was established with the aim of expanding the retail chain under the PTA trademark to the Lithuanian market and by that increasing retail turnover from the PTA brand.

The first PTA stores in Lithuania are to open at the end of this year.

SURVEYS

Half of Estonians Reckon They Know How EU Works - Survey

Jul 13 - Almost half of Estonian citizens believe they understand how the European Union works; such a belief is strongest among the highly educated.

In the spring survey by Eurobarometer, 48 percent of the polled claimed they understand the functioning of the EU, 42 percent said they do not understand it and 10 percent were unable to give an opinion.

The Eurobarometer survey showed that Estonians' awareness of EU institutions is fairly high and on the whole citizens' knowledgeability matches the bloc's average. Estonians whose subjective opinion is that they are fairly well informed about the EU and its policies and institutions made up the biggest group, or 62 percent of respondents. Some 31 percent said they know little and 6 percent, that they are well informed.

Estonians' Trust in Govt Above EU Average - Survey

Jul 13 - The Estonian government's credibility stands substantially above the European Union average with 54 percent of citizens having faith in their government whereas political parties' reliability is low in Estonia like elsewhere in Europe.

Forty percent of respondents in Estonia tend not to trust the government and 6 percent had no opinion.

The government's credibility is practically equal with Estonian nationals' trust in the United Nations and the European Union, both of which are trusted by 56 percent of the polled.

The Estonian judicial system is trusted by 49 percent and not trusted by 41 percent of citizens, compared to the EU averages of 48 and 47 percent, respectively.

The parliament and political parties on the other hand are institutions which enjoy little trust in Estonia: the parliament is not trusted by 51 percent and parties, by 71 percent of the polled in contrast to 41 percent and 21 percent, respectively, who trust them.

Most Estonians Satisfied With Their Life - Survey

Jul 13 - More than two-thirds, or 69 percent of Estonians are satisfied with the life they lead and nearly half expect their personal situation to improve over the next 12 months.

According to the latest Eurobarometer survey, 8 percent of Estonian citizens are very satisfied and 61 percent fairly satisfied with their life, whereas 26 percent or more than a fourth are not very satisfied and 4 percent are not at all satisfied with the life they lead.

Although a clear majority find their life satisfactory, overall life satisfaction in Estonia is below the EU average, placing the country 19th among the 25 member states. On the other hand, Estonians' future expectations are higher than elsewhere in Europe. Forty-three percent expect their life to change for the better, 46 percent do not expect any major change and only 8 percent expect their situation to worsen over the next 12 months.

Looking at developments in Estonia in the near future, 42 percent expect the economic situation to remain unchanged and as many are optimistic that things will change for the better. Nine percent fear the country's economic situation will worsen over the next 12 months.

Estonia Ranking High In Europe by Male Suicides

Jul 18 - With 54.9 suicides per 100,000 male residents aged from 20-44, Estonia comes second after Lithuania in terms of male suicides among the 25 member states of the EU, a survey by Eurostat shows. Latvia is a close third after Estonia with 54.0 suicides per 100,000 men, followed by Finland with 43.

CULTURE AND EDUCATION

Estonia Picks Lecturer to Teach Estonian in Glasgow

Jul 14 - The Estonian Ministry of Education and Science has chosen the lecturer who will start teaching Estonian at the University of Glasgow in autumn. Lea Kreinin, 38, was picked out of a field of five.

Sending a lecturer to Glasgow has been on the agenda for about a year and the initiative came from the university, which has a strong centre of Baltic studies.

Kreinin studied Estonian and Finno-Ugric languages at Tartu University. She holds a master's degree and is studying for her doctorate.

Estonian language has not been taught in Glasgow before.

Opera "Carmen" in Tartu

The all time biggest open-air opera production in Estonia "Carmen" WAS performed in Tartu, in Toomemägi from 7 - 16 July.

Toomemägi and its historical and romantic atmosphere creates a perfect environment and preconditions for a wonderful evening with opera. The famous, timeless and passionate opera by Bizet was performed in the ruins of the Dome Church in Toomemägi. Director of the opera was Ago-Endrik Kerge, conductor was Lilyan Kaiv, lead character was Merle Silmato or Maia Kallaste, Don Jose was Mati Kõrts, Micaela was Hanna Kronqvist (Finland) and Escamillo was Rene Soom. In addition to the famous soloists the KaivConsort symphony orchestra, opera choir and children's choir were also participating in this performance.

Glasperelenspiel Music Festival

Glasperelenspiel Music Festival takes place in the cities of Tallinn and Pärnu from 8 July to 14 August.

The festival Glasperelenspiel ('The Glass Bead Game') is directed by Peeter Vähi. The event has got its inspiration from the novel by Hermann Hesse. It is certainly a leading musical event in Estonian summer where music lovers can enjoy performers like Australian Chamber Orchestra, Chamber Orchestra of the Royal Opera House Covent Garden, Tokyo Philharmonic Chorus, Gidon Kremer, Vadim Repin, Piotr Anderszewski, Olli Mustonen, Paavo Järvi, Christoph Eschenbach.

Tartu Hanseatic Days 2006

Tartu Hanseatic Days 2006 took place from 13 - 16 July.

The theme of this year's Hanseatic Days was "exotic" and the aim of the festival was to introduce Estonian traditional culture and get acquainted with other traditional cultures.

Tartu Hanseatic days is a fest for artists, handicraftsmen, singers, actors, musicians, jokers, fairytale characters and carnival guests.

Sonorous Sounds of the Organs of Saaremaa 2006

The organ festival the Sonorous Sounds of the Organs of Saaremaa 2006 took place from 13 - 15 July.

Estonian musicians performed in three medieval churches of Saaremaa: in Mustjala, Karja and Valjala Church. They played the beautiful music of Bach, Händel, Stradella, Papini, Tosti, Biber, Mascagni, Gounod, Hanau, Franck, Bruckner, Stolz, Malotte, Sibelius, Süda, Kapp, Härma, Pärt, Sink, Siimer.

Music from Seven Towns 2006

Music festival Music from Seven Towns 2006 takes place in Ida-Virumaa from 15 - 21 July. This is the eighth time when this festival is organized.

The original idea of the event was to perform seven concerts in seven towns during seven evenings. But during the years the idea has developed and this year the festival pleases the audience already with eleven concerts in ten different locations, which are the churches and manors of Ida-Virumaa and the Jõhvi Concert Hall, during seven evenings.