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Estonian Review: March 29 - April 4, 2006 
06.04.2006
TOP NEWS
FOREIGN NEWS
DOMESTIC NEWS
DEFENCE NEWS
ECONOMIC NEWS
TOP NEWS
IMF Praised Estonia's Economic Growth
Apr 5 - A delegation of the International Monetary Fund (IMF), ending its six-day mission in Estonia, made a concluding statement saying Estonian key macroeconomic developments in 2005 attest to the economy's continued dynamism.
According to the IMF statement Estonian growth accelerated to nearly 10 percent, propelled by strong investment and an export boom. "A pick-up in the private sector saving rate and a strong fiscal position contributed to a large decline in the current account," concluded the IMF mission.
Prime Minister Andrus Ansip met with the head of the IMF mission to Estonia, Franciszek Rozwadowsk. The main topics of the meeting were the current condition of Estonia's economy, development trends and the euro accession process.
The IMF representatives praised Estonia's economic growth, which is based on earlier successful reforms, and recognised the low government debt and conservative budgetary policy. In the opinion of IMF, Estonia's inflation level corresponds to the pace of economic growth.
Ansip confirmed that Estonia's public finances are healthy. Over the last five years, the budget has been in surplus and the debt burden has been the lowest in the European Union. According to the Prime Minister, the government continues to implement the conservative budgetary policy which provides an environment favourable for economic development and contributes to preserving economic growth.
In the overall opinion of IMF, Estonia is well placed to join the EMU and would benefit from membership. Early euro adoption is an appropriate target since this would reduce, if not eliminate, the risks faced by the economy as it continues on the path to real convergence. Nevertheless a delay would not create significant risks so long as the CBA continued to be underpinned by strong financial and structural policies.
Concluding Statement
FOREIGN NEWS
Estonia and France Signed Agreement on Employment of Young Specialists
Mar 31 - Estonian Foreign Minister Urmas Paet and French European Affairs Minister Catherine Colonna signed during her visit to Tallinn an agreement under which young specialists from Estonia can work in France.
Ministers recognized that bilateral relations between the two countries are very good and active and expressed hope that the new agreement will enhance the co-operation even further.
Speaking about the future of the EU Foreign Minister Paet emphasized that every EU Member State has to state a clear position concerning the Constitutional Treaty. "The text of the treaty is a compromise, but a good compromise," said Paet underlining the need to continue the process of ratifying the Constitutional Treaty.
At the meeting with Prime Minister Ansip, Colonna said that the expansion of the European Union has positively influenced the EU and it is particularly apparent in Estonia, where economic growth is vigorous. Next, it is important to find common interests among the member states of the European Union, not opposition to those interests, said Colonna.
According to Catherine Colonna, Europe has made the right choices which allow it to jointly move ahead. For example, the budget of the European Union for 2007-2013 provides all the states with an opportunity for solidary development. There are also positive developments towards devising a common energy policy and finding a balance in respect to the free movement of services.
According to Prime Minister Andrus Ansip, Europe should certainly speak with one voice. "If 25 small markets hold negotiations with one large market, then there are 25 losers and one winner," said Ansip. "If the European Union speaks with one voice, a greater probability exists for a win-win solution."
Press Conference of Foreign Minister Urmas Paet and French European Affairs Minister Catherine Colonna
PM: Energy Security is Expressed by Solidarity of Member States
Apr 3 - Prime Minister Andrus Ansip and German Minister of Economic Affairs Michael Glos focused on a meeting in Germany on the issues of common energy policy of the European Union.
Ansip introduced to the German Minister of Economic Affairs the exceptional position of the Baltic States in the energy market of the European Union and stressed a need for new alliances with both the Nordic countries and Poland.
The recent gas dispute between Russia and the Ukraine was like the sound of a ringing alarm clock for the European states, showing that no-one is guaranteed energy security and a common effort is required. Solidarity of member states should be expressed in a real wish to connect energy networks more closely with each other, said Andrus Ansip.
The German Minister of Economic Affairs acknowledged Estonia's efforts to diversify energy production. According to Michal Glos, it is important that states should be more active in ensuring the certainty of energy supplies. In Glos' opinion, the co-operation of the Baltic States is a good example in this field.
Ansip and Glos exchanged ideas about creating the European single services market. According to the Minister of Economic Affairs Michal Glos, Germany is also interested in the fast adoption of the services directive, while considering it important to achieve a balance between the social and economic factors in the draft text.
Michal Glos expressed the hope that the rapidly growing Estonian economy would inspire the other states of the EU to also move forward just as successfully. According to Prime Minister Ansip, positive developments in the German economy constitute good news for the whole of Europe.
PM Granted the Order of the Cross of Terra Mariana to Helmut Kohl
Apr 3 - Prime Minister Andrus Ansip presented on his visit to Germany to former German chancellor Helmut Kohl the decoration of the 1st class of the Order of the Cross of Terra Mariana for supporting Estonia's strive towards independence.
In his speech Prime Minister Ansip spoke about Helmut Kohl's contribution to the reunification of Germany and Europe, and his role in the changes at the beginning of the 1990's in Europe.
"The reunification of Germany was an event of invaluable importance to all of reunified Europe. You grabbed hold of an opportunity that was open only for a moment and you made a decision, with your characteristic decisiveness, that democratic Europe had been waiting a long time for," said Ansip.
The Prime Minister added: "It was the developments at Germany's internal border that decisively lead to the restoration of our statehood. The fall of the Berlin wall showed that one era, embodied by Soviet occupational power, was over."
Polish Prime Minister on an Official Visit to Estonia
Mar 30 - Prime Minister Andrus Ansip and Polish Prime Minister Kazimierz Marcinkiewicz expressed their happiness over the European Union's actual steps towards developing a common energy policy. Estonia and Poland are interested in the security of supply, open competition and linked energy networks.
"It is in our interest that our power networks are connected to the Polish and thereby to the other Western European power networks. We are also interested in a connection with the Nordic networks," said Prime Minister Ansip.
The prime ministers confirmed that EU enlargement was a highly successful venture for both the old and new member states and they are convinced that the Union's doors should remain open to those who want to accede in the future.
Estonia and Poland are also interested in creating equal opportunities on the services market. The prime ministers shared their opinion that a very good compromise cannot be reached in this matter. "If you can get 50% of something, it is apparently better than getting 100% of nothing. That is why I find it necessary to support the European Parliament's compromise," assured Ansip.
The meeting between President Rüütel and Polish Prime Minister primarily focused on the issues of infrastructure and energy.
President Rüütel emphasized that the further development of Via Baltica through the territory of Poland, both westward and southward, would give a very important impulse to the economic development of the Baltic Sea region, including Estonia and Poland. He also stressed that energy networks of the states bordering the Baltic Sea should be joined in order to better satisfy energy security requirements and promote the development of competition.
Prime Minister Marcinkievicz introduced his government's activities concerning the development of an internationally significant highway network via Poland, and added that Poland should have solved that question several years earlier, but is now trying to make up for lost time. The Prime Minister said that the further growth of trade between the states depends on the development of highways, and it is necessary to develop both east-west and north-south direction connections.
Talking about energy issues, the Prime Minister expressed readiness to co-operate with all EU member states and added that while planning the future energy questions Poland wishes to see that Estonian representatives would also take part in the co-operation on the level of experts.
It was unanimously agreed that Estonia and Poland have many possibilities to further develop their rich in longstanding traditions co-operation on bilateral level as well as within the EU context - for example, jointly facilitating the development of democracy in the countries covered by the EU neighbourhood policy.
Estonia and Poland Signed an Agreement on Cultural Co-operation
Mar 30 - Siim Sukles, state secretary of the Estonian Ministry of Culture, and Poland's Deputy Culture Minister Krzysztof Olendzki signed an agreement on cultural co-operation between the two countries. The purpose of the agreement is to promote and strengthen cultural ties as well as co-operation in the fields of culture and science. The agreement deals with art, literature, theater, film, music, museums, ethnic culture, copyright and education, and contains a provision about the exchange of specialists.
FM: All EU Member States Should State a Clear Position Concerning the Constitutional Treaty
Apr 3 - Foreign Minister Urmas Paet met on his one-day visit to Slovakia with his colleague Eduard Kukan, Slovakian President Ivan Gašparovič and with Deputy Chairman of the Parliament Viliam Veteška.
At the meeting with Foreign Minister Kukan, bilateral relations, issues related to the European Union Constitutional Treaty, energy as well as the situation in Ukraine, Belarus and the Western Balkans were discussed.
The parties acknowledged that Estonia and Slovakia are close and similarly thinking partners in the European Union and NATO. The bilateral relations are very good and co-operation has been productive, but also good relations have to be maintained and cultivated, the colleagues found. Foreign Minister Urmas Paet said that at the state level the relations have been well established; now communication between people should increase.
"The communication between us is sure to gain impetus also by the fact that both countries have found candidates for the post of honorary consul, who will hopefully start work soon," Paet said.
Estonia's and Slovakia's foreign ministers also exchanged ideas on the Constitutional Treaty. The parties shared the opinion that the ratification process of the Treaty must go on. According to Foreign Minister Paet, every EU Member State has to take a clear position on the Constitutional Treaty, as there is no common vision. "The time has come for all Member States to speak out clearly regarding the Constitutional Treaty," Paet said. "Also "no" is a clear position," he added.
At the meeting with President Ivan Gašparovič, primarily the bilateral relations were under discussion. The parties found that in the case of economic relations there is still much space for development.
President Gašparovič proposed three concrete co-operation areas - information technology, tourism and construction. Foreign Minister Paet noted that in the field of tourism, however, progress has been made. "Estonians have discovered for themselves a beautiful nature and the Tatras ski resorts with a reasonable price level," he said.
At the meeting with Deputy Chairman of the Parliament Viliam Veteška, primarily the bilateral relations and the European Union Constitutional Treaty were spoken about.
Albanian FM Asked for Estonian Support in Albania's EU, NATO bid
Mar 29 - Meeting with Foreign Minister Urmas Paet, Albanian Foreign Minister Besnik Mustafaj spoke about Albania's aspirations as regards the EU and NATO and asked for Estonia's support.
Mustafaj said Albania was interested in the experience of the Baltic States in NATO integration and successful formation of the public opinion that accession to NATO means integration not only for the defence forces but for the country as a whole.
According to Foreign Minister Paet, this was the first high-level visit in the history of Estonian and Albanian relations, although several rounds of political consultations to develop co-operation have taken place. Paet noted that Estonia has also shared its experience with Albania in the field of information technology, on the reforming of local governments and the training of policemen.
Estonian Foreign Minister and his Albanian counterpart also signed an agreement on the protection of classified information. Paet said that as contacts between the two countries develop, Estonia will be keen to conclude also other agreements with Albania, such as the agreement on the avoidance of double taxation.
Apart from bilateral relations, the ministers spoke about the situation in the Balkans in general as well as about the status of Kosovo and the situation in Montenegro ahead of the referendum on independence.
Speaking about visa requirements, Foreign Minister Paet noted that the Estonian government has decided to exempt the holders of Albanian diplomatic passports from the visa requirement provided that Albania will drop the visa requirement for Estonian citizens for stays lasting up to 90 days in the course of six months.
President Rüütel spoke with Albanian Foreign Minister about Estonia's development co-operation activities and about introducing its reform experience to the transition countries. In the words of the President, Estonia is interested in intensifying contacts with Albania and wishes success to Albania's aspirations both in the context of the European integration and NATO.
Estonia Established Diplomatic Relations with UAE, Burkina Faso
Mar 29 - As part of a broader program to establish diplomatic relations with a number of countries with which it has had little communication so far, Estonia set up formal ties with the United Arab Emirates and Burkina Faso.
Estonia's permanent representative to the United Nations Tiina Intelmann and the ambassador of the United Arab Emirates, Abdulaziz Nasser R. Al-Shamsi, signed a joint communiqué on the establishment of diplomatic relations.
The Estonian government issued orders to establish diplomatic relations with the UAE in November 1997, thus the establishment of ties marks the completion of a long process.
Intelmann also signed a joint communiqué with the ambassador of Burkina Faso, Michel Kafando.
In April 2005 the Estonian government decided to establish diplomatic relations with 25 mainly Asian and African countries.
FM Hopes Ukraine Will Get Stable Government
Apr 3 - The Estonian Foreign Ministry is pleased with the Ukrainian parliamentary elections and hopes a stable government will be formed in that country.
"We are deeply satisfied with the first totally democratic and free elections in which the Ukrainian people could express their will," the ministry said.
In the ministry's opinion, the European Union including Estonia should co-operate with any democratically elected government that stays on the path of democratic reforms.
"We hope that a stable and capable government will be formed on the basis of parliamentary majority," the ministry added.
Estonian NGOs Called to Assist Belarusian Youth
Apr 3 - Estonian non-governmental associations and civil activists have called for support to help repressed Belarusian young people continue their education in Estonia as hundreds of students have been expelled from universities because of acts and remarks unacceptable to the Belarusian authoritarian regime.
A statement sent to the government, parliament and rectors of higher educational institutions urges the Estonian state and universities to speedily offer scholarships and places at universities in this country to those young people whom Alexander Lukašenka has banned from studying in their own country and who have been expelled from universities there.
"This way we shall help uphold hope for the birth of a democratic Belarus and thereby defend the survival of the ideals of freedom on the European continent," the NGOs said, adding that this is Estonia's chance to show its respect for European values, that is, democracy and human rights.
Third Estonian Honorary Consulate Opened in the United States and Greece
Apr 4 - The new honorary consul in the US, in Portsmouth is Irja Cilluffo whose consular jurisdiction covers New Hampshire, Massachusetts and Rhode Island. The honorary consulate is located at 179 Pleasant Street, Portsmouth, New Hampshire 03801.
Irja Cilluffo, who was born in Estonia in 1941, has lived in Portsmouth for almost 20 years. Cilluffo is a business and languages graduate from the Zurich Business College. She works for an investement company Cilluffo Associates. Cilluffo has sat on the boards of local organizations such as the Strawbery Banke Museum, the Seacoast Repertory Theatre and the New Hampshire Humanities Council.
Estonia's other honorary consulates in the US are located in Los Angeles and Chicago.
The new honorary consul in Greece is Irena Panagopoulos whose consular jurisdiction covers eight provinces in the Western Greece and Peloponnese regions. The honorary consulate is located at 12 Othonos Amalias Avenue in Patra.
Born in London in 1963, Panagopoulos is a sculpture and photography graduate from the Mills College in Oakland, California, a noted public figure and businesswoman. She is one of the owners and directors of Greece's best-known shipping company Superfast Ferries.
Panagopoulos is also member of the Vouliagmeni city council and president of the educational and cultural council.
Estonia's other honorary consulates in Greece are located in Piraeus and Thessaloniki.
Estonian Government Supported Opening Embassies in Georgia, Bulgaria
Mar 30 - Estonian government supported opening embassies in the Georgian capital Tbilisi and the Bulgarian capital Sofia.
Citing priorities set out in the foreign representations' development plan for 2006-2009 as well as intensifying contacts between Estonia and Georgia, the Foreign Ministry said that Georgia's course toward integration with NATO and the EU since the so-called roses revolution in November 2003 had brought about interest from the Georgian side in the administrative and economic reforms carried out in the Baltic states, which led to these states' membership in the EU and NATO.
Regarding the embassy in Sofia, the ministry also cited the development plan for 2006-2009 and said that in the long run Estonia is planning to open its representations in all EU and NATO member states and candidate countries.
Estonia's Commission on Crimes against Humanity Presented Book in English
Mar 30 - The Estonian Foundation for the Investigation of Crimes Against Humanity presented a 1,300-page book bringing reports by its investigating commission on the crimes against humanity committed in Estonia during the first Soviet occupation in 1940-1941 and the Nazi German occupation in 1941-1945.
The illustrated book in English is titled "Estonia 1940-1945: Reports of the Estonian International Commission for the Investigation of Crimes Against Humanity" and it contains 69 works by Estonian historians on which the reports are based.
The commission, which was convened at the initiative of Estonian President Lennart Meri in 1998, is led by Finnish veteran diplomat Max Jakobson and includes Uffe Ellemann-Jensen, Peter Reddaway, Nicholas Lane, Paul Goble, Arseny Roginsky and Wolfgang von Stetten as members.
The work of the commission is financed mainly by the Estonian government via the Estonian Foundation for the Investigation of Crimes Against Humanity.
Estonian-Russian Anti-Crime Pact Signed
Apr 4 - Estonian Interior Minister Kalle Laanet and his Russian counterpart, Rashid Nurgaliyev signed in Moscow a protocol on joint actions against terrorism and crime.
The co-operation protocol for 2006-07 lays down the principles of co-operation between the two countries.
It was agreed that the ministers will henceforth meet regularly twice a year. The ministers also decided to set up a bilateral working group.
The key points of the protocol concern improving the efficiency of operational co-operation of border regions, the fight against international crime and terrorism, thefts of vehicles, money-laundering, drug trade and securing of both countries' citizens' rights and interests.
The document is based on the co-operation agreement the Estonian and Russian interior ministries concluded in 1997.
DOMESTIC NEWS
Estonia's Res Publica, Pro Patria Union Decided to Merge
Apr 4 - The boards of Res Publica and Pro Patria Union gave the go-ahead to plans to set up a new party on the basis of the two parties today.
The new party emerging from the unification of Res Publica and Pro Patria Union will be named Eesti Eest (For Estonia), according to a joint declaration of intent signed by the Pro Patria Union leader, Tõnis Lukas, and Res Publica Chairman Taavi Veskimägi.
The parties' management will be unified during a transition period lasting till June 2007 when a congress of the merged party will take place.
Social Democratic Party Named Presidential Candidates
Apr 3 - The board of Estonia's Social Democratic Party named the party's candidates for the presidential election later this year; they are MEP Toomas Hendrik Ilves, Tartu University rector Jaak Aaviksoo and MP Liina Tõnisson.
The biggest number of votes was given to Ilves, who said he has in the last week and a half realized that the public has approved his decision to run for the position.
"Nevertheless, it is at present much too soon to predict the parliament's final choice, only two parties have revealed their candidates," said Ilves.
DEFENCE NEWS
Turkey Took Over Policing of Baltic Skies
Mar 31 - The Turkish Air Force took over the NATO-sanctioned Baltic air policing mission operating from a base in Lithuania.
The mission takeover ceremony took place in the Zokniai Air Base near Šiauliai, northern Lithuania.
The Turkish contingent is the first to perform the mission for four rather than three months. Besides, Turkey will be the first NATO ally from the South-eastern Europe and Mediterranean region to send its planes and servicemen to the Baltics.
The Lithuanian Defence Ministry has said Turkey would send four F-16 Fighting Falcon jets and about 80 servicemen to Zokniai.
Within the framework of the North Atlantic Council's decision on the air policing mission in Lithuania, Latvia and Estonia, NATO contingents and fighters have been deployed in Zokniai since March 29, 2004. Three-month missions have already been completed by Belgian, Danish, British, Norwegian, Dutch, German and US contingents.
Estonian Government to Establish International Defence Studies Centre
Mar 30 - The Estonian government authorized Defence Minister Jürgen Ligi to establish an international defence studies centre.
To be set up as a foundation, the defence studies centre will have the aim of collecting, producing and spreading defence and security policy expertise and creation of a respective database. The new foundation is expected to create a common information field between agencies connected with national defence in order to facilitate the shaping of national defence and security policy and participation in international defence research work.
Parliament Defence Panel Called For Permanent Baltic Air Policing Solution
Mar 31 - Leaders of the national defence committees of the parliaments of Estonia, Latvia and Lithuania called on the governments of the three countries to continue working towards establishment of a permanent NATO air policing solution.
In a joint statement adopted at their meeting in Tallinn on the occasion of the second anniversary of the countries' membership in NATO, vice chairman of the National Defence Committee of Estonian parliament Trivimi Velliste, chairman of the Committee on Defence and Domestic Affairs of the Latvian parliament Juris Dalbins and chairman of the Committee on National Security and Defence of the Lithuanian parliament Alvydas Sadeckas emphasized the importance of the NATO air policing mission in the Baltic states.
They urged their governments to continue working towards the establishment of a permanent NATO air policing solution in cooperation with the allies and to enhance host nation support capabilities for this mission.
The leaders of the parliamentary committees expressed their support for the enhancement of EU defence capabilities while stressing that this must not lead to unnecessary parallel structures and duplication of existing NATO capabilities.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
Moody's Changed Outlook of Estonia's SEB Eesti Ühispank and Sampo Pank
Apr 3 - The international Moody's rating agency changed the outlook of the C- financial strength rating of Estonia's SEB Eesti Ühispank from stable to positive.
Moody's said that the positive outlook reflects the bank's sound earnings growth despite margin pressure and its improved market and financial positions.
Moody's also upgraded the financial strength rating (FSR) of Estonia's Sampo Pank from D to D+ and changed the outlook on the rating to stable.
Moody's said that the change in the rating reflects Sampo Pank's stable market presence in Estonia as well as the group's continued sound financial position, including improving credit quality, solid earnings growth and success in growing its deposit funding base.
Estonian Energy (Eesti Energia) to Offer Internet over its Power Lines
Apr 3 - A subsidiary of the Estonian state-owned energy utility Eesti Energia is about to start offering households and small offices the possibility to access Internet and the telephone network via its electricity supply cables.
As part of a pilot project, the subsidiary called Eesti Energia Televõrgu AS set up a data transmission network in its office based on Power Line Communication (PLC) technology, achieving speeds of up to 200 megabits per second. The technology also enables the power company to act as a provider of telephony service.
The company will use the new technology to offer Internet and telephone service in neighbourhoods of private homes, Eesti Energia said.
Estonian Garment Maker Baltika Plans to Triple Number of Shops in Ukraine
Mar 31 - The garment maker Baltika intends to triple the number of its shops in Ukraine in three years.
The firm has opened three new shops in Ukraine since the beginning of this year, next week a Monton brand shop will open in Dnepropetrovsk and in two weeks a similar shop in Odessa, the firm's Ukrainian market manager Tatyana Karlova said. Six more shops will open in the second half of the year.
By 2008 the number of shops should increase from the current 15 to 38 and sales, from 98 million kroons (EUR 6.26
mln) in 2005 to 300 million kroons. Ukraine aims to become the second-largest market of the Baltika group after Estonia by the end of this year.
Baltika's objective is aggressive expansion in Ukraine in 2006-08. "We can't let the opportunity slip, it's a very promising and unsaturated market," Karlova said.
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
To subscribe please contact: vmpress@vm.ee
 
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