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Estonian Review: September 12-18, 2005
23.09.2005
TOP NEWS
FOREIGN NEWS
DOMESTIC NEWS
DEFENCE NEWS
ECONOMIC NEWS
CULTURAL NEWS
TOP NEWS
Foreign Ministry approved projects directed at Ukraine, Moldova and Egypt and a project to inform the Estonian public on development co-operation
On Thursday, 15 September, the Foreign Ministry decided to support the implementation of development assistance projects directed at Ukraine, Moldova and Egypt, as well as a project for informing the Estonian public in the field of development co-operation with 1 149 298 kroons.
Foreign Minister Urmas Paet signed the directives earmarking the sum in the Foreign Ministry's budget from the means foreseen for development and humanitarian aid.
Two projects are directed at Ukraine - the project of OÜ Aquatilis for the development and strengthening of the local self-government of Ukraine's Kulikovka region, which is a follow-up to the training of the officials of the same region, conducted this spring by the County Government of Põlva. In the framework of the project the local government officials of the Kulikovka region and the executive staff of the oblast are going to be familiarized with Estonia's experiences in the development of the local self-government. In the autumn this year it has been scheduled to conduct a 5-day theoretic-practical training program for 20 local government officials of the region and for the executive staff of the Chernihiv oblast, focusing on the topics which were highlighted during the first training and the purpose of which is to connect the theoretic bases of the restructuring with practice, exemplified by Estonia's experiences.
The purpose of the second project is to assist the Ukrainian Chamber of Commerce and Industry at making preparations in the field of the European integration. In the framework of the project it has been planned to conduct a survey among the Ukrainian entrepreneurs of specifying the necessity of information related to the European integration, based on which results the employees of the Chamber of Commerce and Industry will be offered the corresponding trainings on the European Union topics, as well as trainings on services necessary for their enterprises in future.
The third project is directed at Moldova, the implementer of which is the Centre for Public Service Training and Development and the main goal of which is the supporting of Moldova's integration into the European Union. In the framework of the project the officials of Moldova's Parliament, as well as of the Ministry of Justice are going to be trained on the topics of the European integration; principally the harmonization of Moldova's legislation with the EU legislation will be focused on. The project is going to be implemented in co-operation with the British Embassy in Moldova and it is a follow-up to the project of the years 2004-2005 carried out in the field of the European integration.
The fourth project is directed at Egypt - a project of the foundation e-Governance Academy for the development of information and communications technology in the Fayoum region. The goal of the project is to support the development of the Egyptian information society, for which purpose two study trips are going to be carried through for introducing the situation in Estonia and for specifying Egypt's needs. This is the first development assistance project directed at Egypt.
The Foreign Ministry decided to support also the information project Maailmapäev of the Non-profit Association European Movement in Estonia. The main goal of the project is to raise the awareness of Estonian people about development problems in poorer countries and the importance of development co-operation in the communication between countries and nations.
In the framework of the project on 17.09.2005 a whole-family event will take place in Tallinn on the topic of development co-operation, where Estonian inhabitants will be able to get acquainted with themes connected with development co-operation and which will offer an opportunity for the organizations related to the area to get introduced in more detail.
8 million kroons is allocated from Foreign Ministry's 2005 budget to development and humanitarian aid.
Detailed project descriptions and an overview of Estonian development co-operation projects in earlier years is available at the Foreign Ministry's homepage at:
http://www.vm.ee/est/kat_425/5084.html
Paet: UN has a very important role to play in the peaceful resolution of conflict
Sept 18 - From September 16-20 Foreign Minister, Urmas Paet is taking part in the European Union's Ministers week, which falls within the framework of the UN General Assembly. On Saturday, 17 September he met with his European colleagues and took part in the opening of the general assembly's general debate.
In the meeting before lunch, EU foreign ministers discussed the results from the UN summit, as well as the situation in the Middle East and issues relating to Iraq.
Upon reviewing the topics of the UN summit, EU foreign policy leaders noted that the accomplished results are a good basis for the continuation of UN reform. They expressed their satisfaction in the fields of, development cooperation, the condemnation of terrorism and progress made in reconstruction of areas formerly ravaged by conflict. Estonia considers the UN to play an important role in conflict prevention and in the peaceful resolution of conflict, noted Paet. He confirmed that the Peace building Commission created by a decision made at the UN summit is an appropriate step in the collaboration of efforts to re-build re-building areas devastated by conflict.
The continuous monitoring of the human rights situation and when needed, quick response to human rights violations, should be apart of the UN's everyday involvement, according to Paet.
When discussing the situation in the Middle East surrounding the Israeli withdrawal from Gaza, EU foreign ministers stressed that stabilization of the situation is a priority in both Gaza and the West Bank. At the same time stabilization is important to the upcoming Palestinian elections, says Foreign Minister, Paet.
EU foreign policy leaders discussed issues related to Iran, noting that to gain the trust of the international community, Iran needs to keep its word over the agreed terms and stressed, that there should be ongoing efforts to continue nuclear talks with Iran.
The Estonian Foreign Minister also took part in the opening of debates in the UN's general assembly.
By the end of this year, the commission should in all practicality be up and running, he added. Reflecting upon the UN's system for protecting human rights. The Foreign Minister expressed his satisfaction that the declaration made at the summit at last brings a satisfactory agreement concerning the establishment of a commission on human rights.
FOREIGN NEWS
Foreign Minister Paet met with representatives from Georgia, Thailand, Egypt, Antigua and Barbados at UN general assembly
Sept 17 - Foreign Minister, Urmas Paet met with Georgia's Foreign Minister, Salome Zourabichvili, Thailand's Vice President, Sukariart Sathirathai, Egypt's Foreign Minister, Ahmed Aboul Gheiti, Antigua and Barbados's Prime and Foreign minister, Baldwin Spencer and Vice Prime Minister and Foreign Minister of Greenland's self-administrative government, Josef Motzfeldt in New York on Saturday at ministers week, an event held under the framework of the UN General Assembly.
Georgia's Foreign Minister, Salome Zourabichvili gave an overview of the EU's neighbourhood policy related to its activities in Georgia. Foreign Minister, Paet confirmed that Georgia continues to be at the center of Estonia's bilateral developmental cooperation. Paet was interested in just, which areas Estonia could be of most help to Georgia over the course of next year. Foreign Minister, Zourabichvili said that Georgia could most use Estonia's help in the administration of the country's local self-administrative bodies, while elections are nearing. Foreign Minister, Paet informed the Georgian party of Estonia's intentions to open an Estonian embassy in Tbilisi next year. Meanwhile, positive remarks were exchanged concerning such plans and how the opening of an Estonian embassy in Tiblisi would help to increase contacts between the two nations.
In his meeting with Thailand's Vice Prime minister, Surakiart Sathirathaiga, it was found that Estonian-Tai relations are good and at the same time there is great potential for further development. Many opportunities have yet to be developed relating to the promotion of economic and commercial relations between the two nations, while a basis for joint cooperation in the area of commerce has begun to develop. We are very happy that before too long Estonia and Thailand will sign a treaty to put an end to double tariffs, which by itself encourages businessmen to invest more and engage in increased business projects, linking the two countries closer together, says Paet. Both parties were also in agreement that it is very important to collaborate in the area of tourism, since Thailand is very well known as a popular destination for Estonian vacationers. Foreign Minister, Paet, acknowledged the effective work of Dr Virachai Techavijiti, Estonia's Honorary Consul in Bankok, making note of the Estonian student's grant, provided by the Consul, enabling Estonian children the opportunity to study in Thailand's International Private School. Thailand's Vice Prime Minister, Surakiart Sathirathai is also a candidate on the list of those to possibly serve as the new Secretary General of the UN, after the 2006 election.
Meanwhile with his Egyptian colleague, Ahmed Aboul Gheit, Paet discussed in depth the possibility of increasing business contacts between the two nations. The Foreign Minister invited the Egyptian Foreign Minister for a visit to Estonia and recommended that he bring along a business delegation. In unison it was agreed that the development of relations would help to speed up next years plans for the establishment of an Estonian consulate in Cairo. Additionally, Foreign Minister Paet informed his colleagues that Estonia supports establishment for the E-riik academic project in the Fayoumi region of Egypt, to develop information and communication technology. This is Estonia's first ever development cooperation project in Egypt.
Foreign Minister, Paet met with Antigua and Barbados's Prime- and Foreign minister, Baldwin Spencer, with whom it was agreed that in the case of the establishment of honorary consuls in the two countries both parties would find the appropriate candidates to fill those positions. Both parties agreed that they have similar concerns in the field of Maritime safety, while Antigua and Barbados is one of the Caribbean's most important cruise line destinations.
The Vice Prime Minister and Foreign Minister of Greenland's self-administrative government, Josef Motzfeldt presented the Estonian side on its relations with the European Union and its concerns.
Paet met with Italian Foreign Commerce Minister, Adolfo Urso
Sept 14 - Estonian Foreign Minister Urmas Paet met with the Italian Foreign Commerce Minister, Adolfo Urso. Topics discussed during the meeting included: Estonian and Italian economic relations, the free movement of workers, EU structural funds and issues relating to the financial perspective of the EU.
According to Foreign Minister, Paet Estonian and Italian economic relations are very good, but commercial ties could be even stronger, as well as partnership in the fields of science and technological research.
Speaking on the free movement of workers, Paet expressed hope that the countries, which have applied a transitional period, such as Italy, would end this as soon as possible. He sees it unnecessary to extend this period after the 2-year period has expired on 1 May 2006. Ending restraints on the free movement of workers would enliven the internal market and would lift Europe's competitiveness on the whole, which is clearly one of the goals set by the Lisbon Strategy, added Paet
Speaking of European Union Structural Funds, the Italian Minister of Foreign Commerce said that they are ready to share experiences on how to make the best use of structural funds.
From the financial perspective, both sides agreed that it is in everybody's' favour to resolve this complicated question within the next months.
Slovenian Prime Minister visits Estonia, EU enlargement discussed
Sep 14 - The Slovenian prime minister, Janez Jansa said in the meeting with his collegue Andrus Ansip that new EU member states are morally obliged to further continue EU expansion, as reported by the governmental press service.
In Ansip's opinion, the prospect of joining the bloc would give many countries motivation to carry out necessary democratic and market economy reforms. Estonia backs speedy opening of accession talks with Croatia and hopes that other Balkans countries would also be ready for this soon," the prime minister said.
Jansa briefed Ansip about Croatia's preparations for the first half of 2008 when Slovenia will take over the rotating presidency of the EU. The
Slovenian government mentioned one of the key goals of this period is to help speed the bloc's expansion to the Balkans and to help find solutions to the region's problems, especially in Kosovo.
DOMESTIC NEWS
Estonian Government appoints new police chief to office
Sept 15 - The Estonian government appointed Raivo Aeg, Director General of the Police Board, whose term of office runs from now until 14 September 2010.
Aeg's monthly pay as police chief is 21,000 kroons (EUR 1,340) plus 15 percent for length of service.
Aeg has worked in public service for 17 years, 10 months and 15 days.
On Tuesday the parliamentary Legal Committee gave its unanimous support to Aeg's candidacy for the position of Director General of the Police Board. The panel found that Aeg, who has for years worked in a number of positions on the Police Board, is capable of ensuring the stability of the law-enforcement organization.
The government dismissed the previous head of the Police Board, Robert Antropov, on Aug. 31, resulting from a scandal over his use of an official car to take his parents to the island of Saaremaa and back. Antropov will continue work as Director of the Police Board.
Up until now, Aeg has worked as head of the personal protection service.
DEFENCE NEWS
Estonian Kaitseliit's mission units trained by US instructors
Sept 13 - A weeklong military police training programme, Cobra 2005 in the course of which instructors of the US Maryland National Guard prepared members of the Estonian paramilitary Kaitseliit (Defence League) for a foreign mission, kicked off on Tuesday, 6 September at Kaitseliit's Piirsalu training ground in the western Läänemaa region.
The 200-hour training program covered convoying, action in the event of mass unrest, search and arrest, and the activity of a control post.
Twenty-four officers and NCOs of the Maryland National Guard who have been trained as military police instructors and have mission experience from different hot spots of the world acted as instructors.
Kaitseliit sent two platoons to prepare for the European Union-led mission ALTHEA in Bosnia and Herzegovina.
ESTGUARD-1, the first mission team of Kaitseliit, has undergone pre-mission training since July at the Peace Operations Centre in Paldiski and is scheduled to head to the mission area in December.
Ex-NATO commander to visit Estonia
Sept 13 - Former commander of NATO forces in Europe and a former US presidential candidate, Wesley Clark will come to Estonia at the end of this month.
Clark will together with numerous foreign and defence policy specialists take part in the general assembly of the Atlantic Treaty Association to be held in Tallinn from Sept. 27 through Oct. 1.
This is one of the largest foreign and defence policy events ever to be held in Estonia.
Also Ron Asmus, Head of the Transatlantic Centre of the Marshall Fund, considered to be the American architect of NATO's expansion into the Baltic states, has promised to come to Estonia.
In conjunction with the ATA general assembly, an Estonian translation of a book by Asmus summing up the story of the alliance's enlargement will be presented. One chapter of the book is dedicated to the Baltic States.
Estonian peacekeepers return to Iraq
Sept 13 - The light infantry platoon ESTPLA-11 returned to Iraq on Tuesday after a two-week leave in Estonia. The unit, which arrived in Estonia on Aug. 29, set out for Iraq early Tuesday morning, the information service of the defence forces said. Before leave the platoon took part in 13 search and reconnaissance operations of different durations and performed three patrols. The soldiers have also taken part in escorting, providing security and guarding of sites. The unit under the command of Capt. Sergei Guselnikov began its six-month stint in Iraq this June. The 34-strong platoon has been trained to carry out foot and motorized patrols, searches, escorting of convoys and guarding of sites. The Estonian contingent in Iraq is headed by Col. Aarne Ermus who serves as deputy chief of staff of the NATO training mission.
Estonian Defence Minister joined NATO colleagues for informal meeting in Germany
Sept 12 - Estonian Defence Minister Jaak Jõeruut left Monday for Berlin to take part in an informal meeting of NATO defence ministers, scheduled to begin on Wednesday. The key topics of the two-day meeting are NATO's military transformation, peace enforcement operations in Afghanistan, Iraq and Kosovo, and the fight against terrorism, the Defence Ministry said.
Jõeruut is to attend events marking the 50th anniversary of Germany's accession to the alliance and the establishment of the Bundeswehr, the German armed forces. NATO ministers will also hold talks in Berlin with their Russian counterpart, Sergei Ivanov.
ECONOMIC NEWS
World Bank: Estonia ranks 16th among countries with a favourable business climate
Sept 13 - In its new survey on the world countries' business climate the World Bank has ranked Estonia as No 16, the EU Observer Internet portal reported. The survey ranks the countries on their success in creating a simple and favourable environment for business. It comprises both tax policy and labour market regulations.
11 of the world's thirty most competitive countries are members of the EU. Denmark ranks 8th place among countries with a most favouable business climate. Great Britain ranks 9th place, Ireland 11th, Finland 13th, Sweden 14th, Lithuania 15th, Estonia 16th, Belgium 18th, Germany 19th, the Netherlands 24th, Latvia 27th and Spain 30th. The three countries leading in terms of their favourable business climate are New Zealand, Singapore and the United States. The Baltic countries were pointed out in particular because all the three were among the thirty most competitive countries even though they only launched their reforms ten years ago. The World Bank published its, Doing Business in 2006 report covering 155 countries on Monday.
Estonia: Adoption of Euro may be shifted to 2008
Sep 16 - The European Commission rules out political concessions to Estonia in meeting the
Inflation criteria, and so it is probably likely that Estonia will only adopt the Euro in 2008.
Joaquin Almunia, finance commissioner of the European Union (EU), said that if Estonia fails to meet any of the terms of transition to the euro, it would not be able to adopt the common European currency.
"The assessment is not political but purely technical, meeting of the terms is measured as efficiently and as cold bloodedly as a radar measuring a driving speed," Almunia said. "Like ownership of a rally car does not give one the right of driving at 200 kmh on a public road, fast economic growth does not give the right to exceed the established inflation rate."
Of the criteria to fulfil for the transition to the euro, Estonia is worried the most by a high rise in the price of goods and services. The European Commission is apparently going to consider next April whether or not Estonia's average inflation of the past 12 months meets the requirements of adopting the euro.
Andrus Saalik, head of the Finance Ministry's Economic Analysis Department, said that to adopt the euro, inflation in Estonia should be three percent at most. "This will be difficult to achieve, but I think it is not impossible to do so," Saalik said.
Hansapank analyst Maris Lauri, however, said that on the background of the present developments Estonia will fail to meet the inflation criteria and adoption of the euro will be postponed.
"It is apparently very bold to presume that the prices of services will rise by only 3 percent a year," Lauri wrote on the web page of Hansapank's Internet bank. "All signs indicate that meeting of the Maastricht inflation criteria has become next to impossible." Besides, the article of the Estonian Constitution that gives the sole right of issuer of Estonian currency to the Bank of Estonia, is making it problematic for Estonia to adopt the euro. As the time is likely to run short to be able to amend the Constitution, there are hopes to solve the contradiction by means of amendments made under constitutional surveillance or with the agreement of the Supreme Court.
Estonia's account gap widens to 83 million Euros in July
Sep 12 - By a flash estimate of the Bank of Estonia, the current account deficit in July was 1.3 billion kroons (EUR 83
mln), which is a considerably wider gap than in June 2005 and in July a year ago.
The greater deficit resulted from an increased gap in the income account and the balance of transfers' turning from positive into negative during the month, the central bank said.
The current account deficit in June had been less than under a billion kroons, whereas in July 2004 the gap was significantly narrower than half a billion kroons. At 1.9 billion kroons, the gap in the trade account, which is the main factor behind Estonia's negative current account balance, was largely as big as in July 2004. Export of goods grew nearly by a quarter and import by one-fifth over July 2004. Both export and import saw a minor decline month on month due to seasonal factors.
Also the surplus in the account of services was as big as in July 2004, making up 1.7 billion kroons. Export of services increased 11 percent and import 22 percent. Net inflow of income grew more than twofold to one billion kroons. If the income earned by Estonian investors from investments abroad decreased 14 percent, then income of foreign investors in Estonia grew roughly by half, the Bank of Estonia said. The financial account surplus without reserves made up 2.8 billion kroons in July. Inflow of capital took place mostly in the form of direct and other investments.
At 1.5 billion kroons, net inflow of foreign direct investments was considerably higher than the usual monthly figure of 700-800 million kroons. Foreign direct investments made in Estonia amounted to 1.7 billion kroons, compared with 0.2 billion kroons in FDI by Estonian residents abroad.
The balance of portfolio investment was likewise negative, by 2.6 billion kroons. The balance of other investments was positive to the sum of four billion kroons. Reserve of the balance of payments grew by 0.9 billion kroons.
The Bank of Estonia will release a preliminary estimate of the August balance of payments on Oct. 12.
Currency Rates in Kroons
September 4, 2005
British pound - GBP - 23.083
Canadian dollar - CAD - 10.785
Swiss franc - CHF - 10.091
Danish krone - DKK - 2.099
Japanese yen - JPY - 0.115
Latvian lat - LVL - 22.475
Lithuanian lit - LTL - 4.532
Norwegian krone - NOK - 2.009
Russian rouble - RUB - 0.451
Swedish krona - SEK - 1.675
US dollar - USD - 12.757
Euro - EUR - 15.647
CULTURAL NEWS
2005 Pärt Festival celebrates Estonian Composer, Arvo Pärt's 70th birthday
Sept 12 - Estonian composer, Arvo Pärt, well known among classical music lovers around the world celebrated his 70th birthday on 11 September 2005. To mark this occasion, the Rakvere Arvo Pärt Festival 2005 will take place during the entire month of September in Rakvere and several other Estonian towns.
Under artistic direction of world-famous conductor Paul Hillier, the festival will feature the Estonian Philharmonic Chamber Choir and the Theatre of Voices, Hillier's own ensemble, Estonian conductor, Tõnu Kaljuste and English organist, Christopher Bowers-Broadbent amongothers.
Estonian radio station, Klassika Raadio will broadcast a comprehensive documentary series on Pärts life and work. The series, entitled "Arvo Pärt - 70", will air everyday from 11-24 September, featuring the 2005 Pärt Festival, the birthday concerts from Stockholm and London, plus a series of interviews with Arvo Pärt himself and conductors and musicians close to the composer. The series can be viewed starting at 9pm local time.
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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