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Estonian Review: April 26 - May 2, 2006
04.05.2006
FOREIGN NEWS
DOMESTIC NEWS
DEFENCE NEWS
ECONOMIC NEWS
MISC
New Economic Statistics for 2005: Economy at a Glance
FOREIGN NEWS
Estonia Wishes to Host Next Meeting of US-Adriatic Charter
Apr 26 - Estonia is seeking to host the next meeting of foreign and defence ministers of members of the US-Adriatic Partnership Charter and the Baltic states that is due at the beginning of next year, Foreign Minister Urmas Paet said.
Paet and Estonian Defence Minister Jürgen Ligi took part in the first meeting in that format that was held in Brijun, Croatia. The meeting mostly focused on NATO enlargement, new challenges for NATO, and Euroatlantic integration of countries of south-eastern Europe.
Paet said in his remarks that Estonia backs further enlargement of the European Union and NATO. "Only the prospect of Europe will provide countries of western Balkans with enough motivation to continue carrying out necessary reforms," the minister said. Paet said that to reaffirm its continued support, Estonia wishes to host the next meeting to be held in that format. "By hosting the meeting in Tallinn early next year we wish to show our support to the integration of Albania, Croatia and Macedonia into NATO and be useful sharing our experience," he said. The partnership charter signed between the United States on the one side and Albania, Croatia and Macedonia on the other is intended to support the reforms being carried out in the defence structures of these countries as well as domestic democratic reforms, promote security, stability and Euro-Atlantic integration.
FM: EU and NATO Must Intensify Co-operation
Apr 28 - NATO and the European Union must work more closely together because promoting security requires both military as well as civilian capabilities, Foreign Minister Urmas Paet said in Sofia.
Paet made the remarks during an informal meeting of NATO foreign ministers in Sofia which dealt with preparations for the alliance's Riga summit due at the end of November, along with matters related to the NATO partnerships and enlargement, NATO operations and missions.
Paet stressed the need for closer co-operation between NATO and the EU. "Promoting security and stability in post-conflict situation is a complex undertaking. It requires both military as well as civilian capabilities. NATO is stronger in one and the EU in the other field," he said. The need for more intense co-operation between the two is evident, for instance, in Afghanistan, because in the long run it would be difficult for NATO to ensure stability in Afghanistan without the EU's civilian expertise, he said. Security and political development in Afghanistan is in everyone's interest because it will directly influence both regional and global stability. Therefore, Estonia is about to increase its contribution to the NATO-led forces fivefold and will send its civilian experts to Afghanistan's Helmand province, the minister said. Paet said a clear message needs to be given to countries aspiring for NATO membership that the door of the alliance is open. He added that further decisions regarding those countries depend on the actions taken by the countries. Paet also spoke in favour of NATO's intensifying its relations with Ukraine and Georgia.
Estonia in Favour of Ukraine's Getting NATO Membership Action Plan
Apr 28 - Estonia supports handing NATO's Membership Action Plan (MAP) to Ukraine and finds that the alliance should take a positive view on Ukraine's aspiration, Foreign Minister Urmas Paet said.
Paet, who attended a meeting of the NATO-Ukraine Commission that was held as part of an informal meeting of NATO foreign ministers in Sofia described the democratic elections held in Ukraine as a very important step in the country's development.
Ukraine has made remarkable progress in democratization and Estonia hopes that the new Ukrainian government will continue to proceed on the path of reforms, Paet said.
"In view of the progress made by Ukraine, NATO should look positively on Ukraine's aspiration to accede to the NATO Membership Action Plan," Paet said.
The aspiration to become a member of NATO requires extensive reforms from Ukraine, he said. Foreign Minister also expressed hope that political dialogue and co-operation within the framework of the NATO-Ukraine Commission will be conducive to further rapid development of Ukraine.
The current form of co-operation between Ukraine and NATO is Intensified Dialogue, a stage usually preceding MAP.
FM: Estonia Supports Macedonia's Bid to Join NATO
Apr 26 - Meeting with the foreign minister of Macedonia on the sidelines of a meeting of the US-Adriatic Partnership Charter, Foreign Minister Urmas Paet said Estonia was ready to share its reform experience with Macedonia.
The Macedonian minister, Ilinka Mitreva, said Macedonia aspires to join NATO as quickly as possible.
Paet hailed positive developments in the Western Balkans and informed Macedonia about Estonia's support for its joining the alliance. "Long-term stability in Western Balkans is in Estonia's interest, therefore we are in favour of NATO's open doors policy and enlargement of the alliance as soon as the candidate countries and NATO are ready for it," Paet said.
Speaking about Estonian-Macedonian relations, the ministers pointed out the need to sign bilateral agreements, such as an agreement on the avoidance of double taxation.
Touching upon possibilities to share Estonia's reform experience, Paet suggested holding seminars on European integration for Macedonian officials in Estonia.
Macedonia is allowing Estonian citizens to enter the country without a visa. Estonia on the other hand is waiving the visa fee for single-entry and transit visas for Macedonian nationals and is no longer demanding visas from holders of Macedonian diplomatic and service (official) passports.
FM Welcomed Opening EU Countries' Labour Markets to New Member States
May 2 - Finland, Spain, Portugal, Greece and Iceland have said that they would drop limitations to the free movement of labour as of May 1 and will open their labour markets to new EU countries.
Estonian Foreign Minister Urmas Paet welcomed dropping of the limitations, saying that free movement of labour was one of the main freedoms of the European Union and its extension to Estonian citizens was very welcome. "We have again moved a step closer to equalization of the situation of residents of new and old member countries," the foreign minister said, but added that widening of opportunities of working elsewhere should not lead to flow of labour out of Estonia, but acquisition of experience in order to apply it at home. Paet said that it was in Estonia's interest that Estonian citizens should find good jobs above all at home. Belgium and France are planning to open their labour markets in certain spheres depending on the situation of the labour market. Great Britain, Ireland and Sweden opened their labour markets already in 2004.
Foreign Ministry Denounced Arrest of Belarus Opposition Leader
Apr 27 - Estonian Foreign Ministry denounced the arrest of Belarus opposition leader Alexander Milinkevich and the sentencing of Milinkevich to detention for 15 days.
"The detention assigned to opposition leader Alexander Milinkevich shows that human rights and democracy are not respected in Belarus," Foreign Ministry spokesperson Ehtel Halliste said.
She added that the governing regime in Belarus wished to communicate with the people through violence and repressions. "Conduct like this is not in accordance with European practice," Halliste said.
The European Union said it was following the arrests in Belarus closely. "We condemn any detentions that are for reasons of having taken part in a demonstration or any other political activity," said EU Commission spokeswoman Emma Udwin.
Estonia and Brunei Established Diplomatic Relations
May 02 - The Estonian charge d'affaires in Japan, Argo Kangro and ambassador of the South-East Asian country of Brunei, Dato Paduka Adnan Buntar signed a joint statement on the establishment of diplomatic relations between the two countries in Tokyo.
In the conversation following the signing of the document the two diplomats expressed hope that establishment of diplomatic relations would deepen economic and trade co-operation between the two countries. One of the possible forums is ASEM (Asia-Europe Meeting), of which both the countries are partners. An ASEM summit will take place in Helsinki this September.
The Sultanate of Brunei, a small country situated in northern Kalimantan, recognized the independence of Estonia on November 25, 1991, and Estonia recognized Brunei on February 20, 1992.
Estonia now has diplomatic relations with 143 countries.
Estonia and Republic of Congo Established Diplomatic Ties
Apr 27 - Estonia's Ambassador to France Andres Talvik and the ambassador of the Republic of Congo, Henri Marie Joseph Lopes, signed a joint communiqué on the establishment of diplomatic relations between the two countries.
In the course of the conversation that followed the ambassadors spoke about EU-African relations and regional policy.
Ambassador Lopes emphasized the importance of the establishment of diplomatic ties between the two countries at a time when the Republic of Congo was president of the African Union and non-permanent member of the UN Security Council.
Congo recognized Estonia's independence on March 24, 1992.
Estonian MEP: Russia Still Acting Like in Cold War
Apr 27 - Speaking before the European Parliament, Estonian Socialist MEP Marianne Mikko criticized what she described as carrying on of Cold War mentality by the Russian leadership.
"Russia's behaviour is punitive action calculated in a cold-blooded manner, which derives from the Cold War policy of spheres of influence," she said, speaking of the Russian embargo on the import of wines from Moldova and Georgia.
As head of the European parliament's Moldova delegation, Mikko presented a declaration that was sent to all of the parties, which condemns the use of economic means of influence for political ends.
Interior Minister: EU Decision to Raise Schengen Visa Fees was Accepted in Balanced Form
Apr 28 - The European Union Justice and Home Affairs Council has passed the decision to raise the Schengen visa fees.
I am glad that this particular draft that caused many political tensions has been finally accepted today in this balanced form, said Interior Minister Kalle Laanet. The visa fee increase in the course of adopting a new technology aimed at reducing security risks is a clearly reasonable and inevitable action. This is supported by our domestic experience of travel document development and system cost estimates, explained Minister Laanet.
The new visa fee procedure also has a provision for group exceptions when corresponding agreements are concluded with the European Union based on its visa simplification and withdrawal strategy. It is essential that the council has raised the visa fees while taking into consideration the wider foreign and competitive policy aspects of the European Union, at the same time staying within the framework of a common visa policy, said Interior Minister Kalle Laanet. The council has also given a very clear foreign policy signal and a possibility for countries with a priority European perspective and countries of the European neighbourhood policy to enter into negotiations with the European Union aimed at concluding visa simplification and withdrawal agreements even before the decision enters into force. The council has considered the emergency situation in Belarus as well.
The council's decision to increase the visa fee was passed with a qualified majority. This decision will become applicable to Estonia when the country becomes a full member of Schengen, probably at the end of 2007.
PACE Speakers' Conference to be Held in Tallinn
Apr 26 - Invitations have been sent to the parliamentary leaders of 46 European countries to attend a conference of speakers of the Parliamentary Assembly of the Council of Europe in Tallinn at the end of May.
The conference to be held in the building of Estonia's Kumu art museum from May 30-31 will deal with two topics: parliamentary diplomacy as a builder of bridges, and the role of parliaments in promoting pluralistic democracy at home and abroad.
By the end of March the parliaments of 43 countries had announced that they will participate in the event, along with representatives of PACE, the Nordic Council, the Western European Union and Benelux.
DOMESTIC NEWS
PM: Estonia's Goal is to Increase Expenditure on R&D up to 3 percent of GDP
Apr 26 - When opening the General Assembly of the Estonian Academy of Sciences, Prime Minister said that more efficient co-operation was needed between scientists and entrepreneurs for Estonia's success to continue and to reach the top five most successful states in the European Union. In order to achieve the most innovative and competitive solutions, it is most important to concentrate the resources assigned for research and development into key areas.
According to the Prime Minister, Estonia's success has been impressive, and our goals for the future continue to be ambitious.
We choose innovation. This means principal breakthroughs in the structure of the economy, even more so in attitude and philosophy, said Prime Minister Ansip.
Estonia must make choices among the different fields, where to develop high-level doctoral studies and an exemplary infrastructure for science. According to the Prime Minister, Estonia's goal is to increase expenditure on research and development up to three per cent of gross domestic product.
263 Residents Naturalized as Citizens
Apr 27 - The Estonian government granted citizenship to 263 people.
In 2005, Estonia granted citizenship by naturalization to 7,072 people, compared with 6,523 in 2004 and 3,706 in 2003.
In all, more than 138,000 people have naturalized in Estonia over the years 1992-2005.
In last November the number of naturalized citizens for the first time exceeded the number of residents with undetermined citizenship.
Action plans of the national integration program for the years 2004-2007 call for Estonia to naturalize at least 5,000 people annually.
DEFENCE NEWS
Baltic States Engaged in Major Counter-Terrorism Exercise
Apr 26 - Estonian law-enforcement and military structures took part in an international counter-terrorism exercise that involved the use of explosive packages, smoke grenades and other similar devices.
Shamrock Key 2006 was a counter-terrorism exercise held simultaneously in Lithuania, Latvia and Estonia in which also military from the United States, Norway and Poland are taking part as NATO partners. The purpose of the exercise was to improve interaction among NATO counter-terrorism units, synchronize communications, support, combat tactics and other important issues as well as ensure closer and more fluent co-operation among state institutions involved in the fight against terrorist attacks.
"The Estonian component of the joint counter-terrorist exercise contained elements of crisis management, in the course of which technical and human resources from military structures, including from NATO partners, were brought in under the leadership of the security police in addition to the usual competent civilian structures in order to prevent a planned terrorist act and eliminate a terrorist threat," said the chief of the exercise in Estonia, security police chief superintendent Tõnu Miilvee.
Army Chief Said Increasing Estonia's Participation in NATO NE Corps Important
Apr 28 - Commander of the Estonian defence forces Vice Adm. Tarmo Kõuts, in Poland on an official visit, said after a meeting with Poland's top military commander and a visit to the headquarters of the NATO North-eastern Corps that developing the corps was in the interest of the region's military security.
Developing the North-eastern Corps corresponds to the military interests of Poland and Estonia and to their defence forces' development plans, Kõuts and the Polish commander, Ltn. Gen. Franciszek Gagor, said.
At the headquarters in Szczecin, Kõuts met with the commander of the North-eastern Corps, Ltn. Gen. Egon Ramms, and was offered an overview of testing of the headquarters. The North-eastern Corps created by Poland, Germany and Denmark is the NATO corps located closest to Estonia geographically. Estonia, Latvia, Lithuania and Slovakia have sent their officers there.
"We need to seriously analyze the successful development of the North-eastern Corps so far and increase our participation in the North-eastern Corps," Kõuts said. "The staff officers of our infantry brigade need that service experience."
Possible integration of the combat group of the Estonian Scouts Battalion and the 1st Infantry Brigade into the North-eastern Corps stood in the focus of Kõuts' trip. The combat group of the Scouts Battalion is due ready for combat by the end of 2007 and the framework of the infantry brigade in 2008.
The commander of the Polish defence forces said Poland would send a navy ship to the Victory Day naval parade in Estonia in June and Polish special forces members would take part in the Erna Raid competition of reconnaissance units.
In the course of the visit Kõuts was hosted at the Polish General Staff, met with Poland's military commanders and got acquainted with the equipment and weapons of Polish armed forces' units.
Estonian Defence Forces Commander Decorated Chief of Polish Air Squadron
Apr 27 - Commander of the Estonian defence forces Vice Adm. Tarmo Kõuts, during his visit to Poland, gave the defence forces' Cross of Special Merit to Ltn. Col. Robert Cierniak, who was in charge of the Polish contingent that performed the NATO air policing mission in the Baltic States.
Polish MiG-29 fighters performed the NATO air policing mission in the Baltic States from January to March this year, making nearly 50 air policing related sorties.
Ämari Air Base Got NATO Approval for Funding
Apr 28 - NATO gave final approval to a document on infrastructure investments setting out, among other investments, funds for a roughly 500-million-kroon (EUR 32 mln) renovation of the Ämari air base in Estonia.
The renovation of the air base is the first project in Estonia financed via the NATO Security Investment Program.
The project extends over a period of five years.
In earmarking funds, NATO is guided by the principle that investments would be made first and foremost in projects which are needed primarily for NATO, financing of which is beyond the needs and means of the member state.
Technical criteria for the investments are determined in accordance with the so-called Capability Packages set out by the NATO military command.
The document endorsed is a Capability Package based on which NATO will develop airfields in the new member states.
Estonian Border Guards to Get New Hovercraft
Apr 29 - Border guards working in the region of Lake Peipsi on the Estonian-Russian border will get a second hovercraft by the end of this year, in accordance with an agreement signed with the British manufacturer.
The roughly nine-million-kroon (EUR 0.58 mln) agreement was signed by the Interior Ministry, the Border Guard Board and Griffon Hovercraft Ltd. The manufacturer will provide crews of the new hovercraft with the necessary training.
The hovercraft has a crew of two and can be operated in summer and winter alike. The 3.5-ton, nine-meter vehicle can take on board ten passengers plus one person on a stretcher.
The purchase is financed by the Schengen Facility.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
Estonian Central Bank Raised Economic Growth Forecast to 8.1 pct
Apr 26 - According to its economic forecast, the Bank of Estonia's vision of this year's economic growth rate is 8.1 percent and of the next year's 7.6 percent.
In the opinion of the central bank consumer prices will rise by 3.6 percent this year and by 3.0 percent next year. According to the central bank export and import will both grow by about 15 percent this year. Next year, the growth in export will be be slightly above 14 percent, while imports will grow by less than 14 percent. According to the central bank's forecast the average wages will rise by 8.3 percent this year and by 7.1 percent next year.
GOV: We Must Be Technically Prepared for the Adoption of euro on 1 January 2008
Apr 27 - The Estonian Government discussed the current progress towards achieving the Maastricht criteria required for accession to the euro zone. At the moment, Estonia excellently meets all the Maastricht criteria except for the inflation criterion.
During the cabinet discussion, it was concluded that as a result of the previous inflation developments, 1 January 2007 had become unlikely as a date for accession to the euro area. According to the spring economic forecast of the Ministry of Finance for 2006 and the recent economic forecast of the Bank of Estonia, the earliest opportunity to achieve the Maastricht price stability, given the present interpretation of the criterion, would be the second quarter of 2007. Adhering to the goal pursued by the Government and the central bank to adopt the euro at the earliest opportunity, it was decided to continue the necessary technical preparations in order to be ready for the adoption of the euro on 1 January 2008.
The cabinet members concluded that the price increase exceeding the inflation criterion was largely caused by the oil price increase on the world market and Estonia's rapid economic growth, and did not constitute a problem from the economic standpoint. Both the European institutions and the International Monetary Fund have considered Estonia's economic policy exemplary.
The cabinet agreed that the Government had to make every effort to keep the inflation as low as possible: the Government would continue conservative fiscal policy and maintain the state budget surplus; the Government has decided to postpone the increase in tobacco and alcohol excise duties for reducing the inflation level until 1 January 2008.
Strong Financial Position of Estonian General Government Sector Dwells
Apr 27 - According to Statistics Estonia, the Estonian General Government preliminary surplus in 2005 was 1.6% of Gross Domestic Product (GDP), which was the fourth result among European Union Member States.
In 2005, the total revenues of the General Government sector consolidated budget exceeded the expenditures by 2.6 billion Kroons. The Central Government sector surplus was 1.4% of GDP and the surplus of Social Security Funds was 0.4% of GDP; at the same time the Local Governments sector remained in deficit (-0.3%).
The Estonian General Government consolidated gross debt level in 2005 was 4.8% of GDP and 55% of the gross debt derived from Local Governments sector. Estonia was continually the Member State with the lowest debt ratio in the European Union.
Increase of Industrial Production Continues
Apr 28 - According to Statistics Estonia, in March 2006 the industrial production in Estonia increased compared to February as well as to March of the previous year.
In March 2006 compared to February, the seasonally adjusted industrial production in Estonia increased 3%.
Compared to March 2005, the industrial production grew 7% in industry as a whole and 9% in manufacturing. The growth in manufacturing production was mainly influenced by the increase in the manufacture of food, wood, and metal products.
The industrial production shows an upward trend starting from 2000.
Charts: http://www.stat.ee/177944
Number of Skype Users Crosses 100 Million Line
Apr 28 - The internet communication firm Skype, set up with the participation of Estonians, has crossed the line of 100 million registered users.
It took the company 2.5 years to reach that number. Only in September Skype had only slightly above half of that number of users - 54 million.
"Skype has madly grown, because it allows you to do what only recently looked impossible: to speak with a person anywhere in the world, regardless of how long, without having to pay anything," said Skype managing director and co-founder Niklas Zennstrom.
Skype is the world's fastest spreading internet communication software making it possible to make unlimited free telephone and video calls. Skype software is available in 27 languages and it is being used in nearly all the countries.
Use of Substances Depleting the Ozone Layer has Substantially Decreased
Apr 27 - According to Statistics Estonia, 1.1 tons of substances that deplete the ozone layer were used in 2005, this is about 4 times less than in 2004 and about 50 times less than five years ago.
Substances that deplete the ozone layer were used mainly in industrial refrigerators and repairing of domestic refrigerators (88%), and in small quantities as solvents (9%), in firefighting equipment (2%) and in foam plastics production (1%).
Norby Telecom Starts Offering IP-based Video Calls
May 02 - The Estonian telecommunication service provider Norby Telecom has introduced IP-based video calls on the market in Estonia, offering the service to corporate and household clients alike.
Tarvo Jõeste, the manager in charge of Norby Telecom, said the time was ripe to start offering video calls because a common standard had started to be applied on devices and most telephones were interacting with each other without problems now.
In the course of an one-hour call made in the Norby network computers on both sides downloaded large files from the Internet and an ordinary IP-call was made, which didn't affect the quality of the video call," Jõeste said.
In order to make an IP-based video call an Internet connection allowing speeds of at least one megabit per second is required. At such speed of connection video is transmitted in full quality and other applications requiring web resource do not have to be closed.
Estonian Businessman to Sell Vodka in US
Apr 26 - The well-known Estonian hotel businessman Toomas Sildmäe is hoping to conquer the US market with a new vodka brand, Brid.
The vodka is of a new premium brand, the price of a bottle being within 400 kroons (EUR 25). "We will be able to provide the respective quality," Sildmäe said.
The target has been set at arriving in 13 US states during the first year, the sales target being set at 117,000 liters. In small quantities Brid will be brought to the market also in Estonian retail outlets. Sildmäe has set the target at 2 to 3 percent market share in the quality vodkas class on the US market.
Sildmäe said that the marketing project of about 20 million kroons should recoup itself within the first year.
On the Estonian market Sildmäe is hoping to gain a market share of 15 percent in three years.
MISC
Exhibition on Turkish History Opened at Estonian National Library
May 3 - An exhibition titled "To Live Together. Memories of the Coexistence of Peoples in the Ottoman Empire" opened at the Estonian National Library on the occasion of Turkish cultural days.
The exhibition consists of about fifty stands speaking about the tradition of coexistence of different peoples and religious tolerance in Turkish history. It describes tolerance in various spheres in life and underlines its importance in the Islamic religion.
The display has been drawn up on the basis of numerous archival documents and gives visitors an overview of earlier history of the Turkish state.
The exhibition, drawn up by the Turkish Foreign Ministry and brought to Estonia by the Turkish embassy, will remain open until May 17.
The exhibition was opened by Turkish Ambassador Fatma Sule Soysal and Foreign Minister Urmas Paet.
More information about the Turkish cultural days in Estonia: www.tellfa.org
EESTI RINGVAADE is compiled from local news services, including BNS, and is issued by the Press and Information Department of the Ministry of Foreign Affairs.
Eesti Ringvaade is also available through the Internet at http://www.vm.ee
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