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Estonian Review: September 5-11, 2005

15.09.2005

TOP NEWS
FOREIGN NEWS
DOMESTIC NEWS
DEFENCE NEWS
ECONOMIC NEWS
CULTURAL NEWS



TOP NEWS

Paet met with National Security Adviser to the U.S. President, Stephen Hadley and Deputy Secretary of Defence, Eric Edelman

Sept 09
- On Wednesday during a visit to the United States, Foreign Minister Urmas Paet met with Deputy National Security Adviser to the U.S. President, Stephen Hadley and Deputy Secretary of Defence, Eric Edelman.
At the meeting with National Security Adviser, Hadley a number of issues were discussed ranging from the situation in Iraq and Afghanistan, to recent developments in Ukraine as well as co-operation in the framework of NATO.
The parties discussed the situation in Iraq and Afghanistan and acknowledged that the presence of coalition forces is still necessary for security in both countries.
Recent developments in Ukraine were also discussed. The parties acknowledged that the continuation of democratic development in Ukraine is of utmost importance, since it is a significant factor in the strengthening of European security. According to Foreign Minister Paet, Estonia is supportive of Ukraine's aspirations towards integration into Euro-Atlantic structures.
"Ukraine's increased co-operation with NATO is as important to regional stability as it is to the strength and security of Europe on the whole," Paet said. "Moreover, support from the general public is also very necessary for that," he added
Speaking of co-operation in the framework of NATO, Foreign Minister Paet said that Estonia appreciates the contribution of the allies, including the United States at ensuring the security of Estonian airspace. "That is a real example of collective security, one of the benefits of NATO membership," Paet noted.
While at the meeting with Deputy Secretary of Defence, Eric Edelman, issues primarily related to Iraq and Afghanistan were discussed, co-operation directed at Ukraine and Georgia was also touched upon.
At the meeting, Deputy Secretary of Defence, Edelman said that the United States is interested at achieving different levels of co-operation in the area of defence. According to Paet, the U.S. is a strategic partner to Estonia in terms of military co-operation. "As to its scope and capacity, our military co-operation practically covers all areas of concern. Within the last decade, a considerable number of Estonian officers and non-commissioned military personnel have received their military training in the U.S.," Paet said.
Speaking on the situation in Iraq, the parties acknowledged that at present, a continuous presence of the coalition partners is beneficial to all parties.
"To overcome the difficult situation in Iraq, the Iraqi Transitional Government needs all the support it can get from the international community," Foreign Minister Paet said. According to Paet, Estonia is going to continue its contribution of international forces until the end of the year. The Deputy Defence Secretary thanked Estonia for its participation and emphasized that the U.S. highly appreciates Estonia's contribution to the international effort.
Estonia's Foreign Minister confirmed that participation in the Afghanistan mission is important to Estonia politically, as well as militarily. According to Paet, the fight against drugs and the curtailment of drug trafficking is of utmost importance. "We are going to continue participation in the reconstruction team led by Great Britain and intend to further increase the number of servicemen we contribute to this effort," Paet said.
In the course of the visit, Foreign Minister Paet also met with Senators John McCain and Richard Lugar and Member of Congress, John Shimkus.
Other issues discussed at the meeting included, the strengthening of democracy in Ukraine and Georgia, and the lack of freedom in Belarus.
Foreign Minister Paet also brought to attention concern for the establishment of a visa-free regime for the Estonian citizens travelling to the United States.



Foreign Minister Urmas Paet met with U.S. Secretary of State Condoleezza Rice

Sept 08
- Foreign Minister Urmas Paet's visit to the United States continued as he met with U.S. Secretary of State, Condoleezza Rice and the former Secretary of State, Madeleine Albright.
During the meeting with Condoleezza Rice, relations between the two countries, including the issue of visa free travel, relief to the U.S. for eliminating damage caused by the hurricane Katrina, issues related to Iraq and the relationship with Russia were under discussion.
At the outset of the meeting Foreign Minister, Paet extended condolences to his colleagues for the losses caused by hurricane Katrina, which devastated the Gulf Coast states of the United States.
The Foreign Minister noted that Estonia is prepared to send a
10-member rescue team to the disaster area composed of logisticians and staff. U.S.
Secretary of State, Rice thanked Estonia for the relief offered and promised that in the near future all of the arrangements related to relief coming from abroad will be finalized and Estonia will be given a final answer as to how it can be of help.
The parties acknowledged that bilateral relations between Estonia and the U.S. have been strong throughout the period of independence of the Republic of Estonia. "Estonia's relationship with the U.S. has always been very good and the U.S. is one of Estonia's major partners and supporters," Foreign Minister Paet said. Speaking on the waiver of the visa requirements for Estonian citizens, Foreign Minister, Paet said that Estonia is satisfied that the U.S. side initiated talks concerning Estonia's possible accession to the Visa Waiver Programme and a consular working group formed for that purpose has in the present also met several times already. "Conditions set for the accession to the Visa Waiver Programme have been almost fully met by Estonia," Foreign Minister Paet confirmed, adding that the only unsolved problem for Estonia is the percentage of non-immigrant visa refusals, which must be under three percent for at least two years running. U.S. Secretary of State Rice expressed her support of Estonia concerning the issue of visa-free travel, noting that the establishment of visa-free travel with Estonia is possible, if all the proper criteria are met. Foreign Minister, Paet added that at present. The primary objective of the Estonian and US joint consular group is to seek to reduce the number of Estonian citizens violating the visa regime.
Touching upon issues related to Iraq, the foreign ministers emphasized the importance of continuing the development of political processes in Iraq and acknowledged that all interest groups in the country are involved in the discussion, elaboration and preparation of the new constitution. Both foreign ministers confirmed that comprehensive involvement of the international community in Iraq has to continue the situation there stabilizes. "Estonia will continue its contribution to the international forces and if possible also in other projects, directed at the reconstruction of Iraq," Paet promised.
Concerning Russia, the foreign ministers also touched upon issues related to the Estonia-Russia border agreement. Foreign Minister, Paet thanked the U.S. for supporting Estonia during the ongoing process; the U.S. side stressed the importance for the finalization of a new border agreement, so that it could be brought into force as soon as possible.
Estonian and U.S. foreign policy leaders also briefly exchanged their ideas and concerns regarding Ukraine in light of the recent developments there. Foreign Minister, Paet considered Estonia's experience with reform important for Ukraine, Georgia, as well as Moldova, and was positive that Estonia can set a good example for these countries to follow.
Foreign Minister, Paet awarded former U.S. Secretary of State, Madeleine Albright with the 1st Class Order of the Cross of Terra Mariana and thanked her for supporting Estonia's path to NATO.



FOREIGN NEWS

Estonia is in favour of giving Ukraine market economy status

Sept 10
- Estonian Foreign Minister, Urmas Paet met with his Ukrainian counterpart, Boris Tarasjuk on Saturday.
The status of Ukraine's interior politics, bi-lateral relations, the Transnistria conflict, relations with neighbours and UN reform were all topics of discussion between the two ministers.
The Ukrainian Foreign Minister, Boris Tarasjuk gave an overview of the internal political situation in his country. According to Tarasjuk, the direction, which Ukraine has chosen will not change and Ukraine will continue to strive towards achieving its European objectives. According to the words of Foreign Minister, Urmas Paet, Estonia supports Ukraine's foreign policy goals. “We are in favour of granting Ukraine market economy status, while this will improve European integration and will also have a positive effect on economic growth, says Paet. He expressed his hope that Ukraine would be able to solve problems related to becoming a member of the WTO and that it could become a member as soon as possible. “We will do everything on our part to support Ukraine on its path in this direction,” Noted Paet. “There is already proof of this from Ukrainian public officials who have received schooling, several of these seminars have taken place in the framework of WTO membership talks.
When mentioning bi-lateral relations, the Ukrainian Foreign Minister expressed his deep satisfaction for the recent exemption of state fees from Ukrainian citizens applying for Estonian visas.
The Transnistria problem was also under discussion. The Estonian Foreign Minister recognized that Ukraine has an important role to play in helping to resolve the Transnistria conflict. Ukraine is ready to allow a European Union led border observation team to the Ukrainian-Moldavian border, or the area known as Transnistria, according to the Ukraine's foreign minister.
Meanwhile, there was an exchange of ideas concerning relations with Russia and Byelorussia. Both sides found that Byelorussia should not be left in isolation and supported the enlargement of an international presence there. Moreover, the necessity for the spreading of objective and adequate information was stressed.
Foreign Minister, Paet delivered a speech in the evening at the concert, Estonia-Ukraine, which was dedicated to Arvo Pärt's 70 anniversary.


Estonian parliamentary speaker voices support for UN reforms

Sept 09
- Speaker of the Estonian parliament, Ene Ergma expressed support on Thursday for the package of planned reforms at the United Nations.
In her speech read at a conference of the Inter-Parliamentary Union (IPU) in the United States, Ergma said Estonia was particularly in favour of the proposed creation of a human rights council and a peace-building commission.
"Time is more than ripe for a global rearrangement of the way these fields are dealt with," the Estonian speaker said.
Ergma said UN member states at the upcoming meeting of the General Assembly are faced with the complex task of making decisions about the future of the UN, which will immediately affect the daily lives of the member states, including the lawmakers.
In the course of the visit that lasted until Sunday, Ergma had separate meetings with the parliamentary leaders of Georgia and Moldova, a spokesperson for the Estonian parliament said.
The speakers of national parliaments attending the conference are to bring the concerns of their citizens to the United Nations. They will discuss ways to deepen the involvement of parliaments in international affairs and to support efforts to achieve the Millennium Development Goals.
Speakers at the event included United Nations Secretary General, Kofi Annan.
The Riigikogu delegation also comprised of the chairman of the foreign affairs committee, Enn Eesmaa, and director of the Riigikogu chancellery Heiki Sibul.
IPU brings together national legislatures from 141 countries, with another seven countries as associated members. Estonia, which had been a member of IPU from 1921-1940, had its membership restored in October 1991.


Estonia to decorate leaving Latvian Ambassador with Terra Mariana cross

Sept 05
- Estonian President Arnold Rüütel signed orders on Monday to confer on the leaving Latvian ambassador, Edgars Skuja, the Cross of Terra Mariana, 1st Class, in recognition of his services to the Estonian state, spokespeople for the Estonian president said.
Skuja was appointed Latvia's ambassador to Estonia in 2002. Last June the Latvian Foreign Ministry announced that Skuja is about to return to Latvia because his term in office expires.



DOMESTIC NEWS

Estonian president endorses amendment on e-voting

Sept 05
- On Monday Estonian President Arnold Rüütel promulgated amendments giving voters the right to change their electronic vote during advanced voting in the forthcoming local elections
The Estonian Supreme Court previously had found that the amendment was not in contradiction with the Constitution.
The president had asked that the Supreme Court declare the Act on Amendment of the Local Government Council Election Act as being in contradiction with the Constitution.
The amendment, which the parliament passed on June 28, permits electors to change their electronic vote a countless number of times in the course of advanced voting.
In the application to the Supreme Court, the president found that the principle of uniformity in ensuring the right to vote set out in the Constitution presumed that every person entitled to vote would only have one vote and everybody was given the opportunity to elect in a similar way.
The Supreme Court found that in case of repeated voting the vote given earlier is cancelled and therefore, despite repeated electronic voting, no elector has any possibility of influencing the election results more than electors using other methods of voting.


Number of Internet users in Estonia up by 79,000

Sept 07
- According to a TNS Emor poll, 55 percent of Estonian residents, nearly 575,000 people aged 15-74, use the Internet, this accounts for an increase of 79,000 users over the past year.
One in every four Estonian residents uses the Internet on a daily basis. The number of Internet users increased the most among those aged 20-29 and 40-49, and among people with lower incomes and residents of bigger cities.
Overwhelmingly the most popular website is Neti, visited by an average of 41 percent of Internet users, about 233,000 people every day. Delfi and Google placed second and third respectively with 167,00 and 126,000 daily visitors. Compared to last summer, Delfi and Google have been winning the most clients. Hot and Hotmail are also among the five most visited websites, with 107,000 and 97,000 visits a day respectively.
TNS Emor collects Data from nearly 50 Web sites.



DEFENCE NEWS

Estonia and Armenia start defence cooperation

Sept 09
- Estonian Defence Minister, Jaak Jõeruut and his Armenian counterpart, Serge Sargsyan signed a memorandum of understanding on defence cooperation between the two countries in Tallinn on Friday.
The ministers spoke about the possibilities for cooperation in defence and developments regarding the NATO Individual Partnership Action Plan (IPAP) for Armenia, according spokespeople from the Estonian Defence Ministry.
Within the framework of the IPAP, Armenia will carry out reform of its defence forces. Armenia aims for a course of development similar to that of Estonia, Latvia and Lithuania and make its defence forces compatible with the standards of NATO and the European Union, the Armenian minister said.
Sargsyan said Armenia values its participation in the NATO Partnership for Peace program and the experience gained by participating in multinational missions in Kosovo and Iraq.
"Estonia welcomes the completion of Armenia's first IPAP and is offering Armenia as a NATO partner its help and reform experience in the implementation of the IPAP," the Estonian defence minister said.
As part of his stay in Estonia, the Armenian minister of defence visited the Baltic Defence College in the Southern city of Tartu, meeting with its chief, Lithuanian Brig. Gen., Algis Vaiceliunas.
"In Baltic Defence College we have an excellent example of very good regional cooperation," Sargsyan said.
Sargsyan also met in Estonia with the Chairman of the Parliamentary National Defence Committee, Toivo Tootsen. Armenia wishes to learn from Estonia's experience, Sargsyan said, underscoring that a long-time relationship in the former Soviet Union helped Estonia and Armenia better understand each other.
The Armenian minister backed the Estonian stance that EU membership talks with Turkey should start this year.


Estonia to send defence advisor to Ukraine

Sept 06
- The Estonian Defence Ministry is set to appoint Merle Maigre to serve at the NATO military liaison mission in Kiev, the daily Eesti Päevaleht reported.
Although the Defence Ministry has not yet officially confirmed that Maigre will be dispatched to the Ukrainian capital, it is known that her tasks will be to help uphold contacts between Kiev and Brussels and relay Estonia's reform experience as a fresh NATO member.
Maigre, 28, has been working at the Defence Ministry since 2000, most recently as the head of the office for NATO integration. She is currently acquiring a MA in war studies at Kings College in London.
The NATO military liaison mission in Kiev is seeking to bring Ukraine closer to Western defence structures.
Ukraine has relayed mixed messages to NATO in recent years. Before the Orange Revolution late last fall, references to Western defence organizations disappeared from Ukraine's national documents on defence.
Now Ukraine is again moving closer to NATO, the newspaper said.



ECONOMIC NEWS

Estonian government endorses draft of supplementary budget

Sept 05
- The Estonian government at an extra Cabinet meeting on Monday endorsed the draft of this year's supplementary budget, which channels 443.3 million kroons (EUR 28.3 mln) of last year's budget surplus into the pension insurance system.
The Finance Ministry said that the supplementary budget is 2.1 billion kroons, and according to plans the pension insurance system will receive a total of nearly 1.2 billion kroons of it.
The medical insurance fund will additionally receive 439.2 million kroons, the first pillar of the pension insurance fund will receive 547 million and the second pillar, 98.4 million kroons.
The government decided to transfer the budgetary surplus from 2004, 443.4 million kroons into the pension insurance reserve.
In addition to the sums from the social tax, the government decided to channel 117 million kroons of additional funds into the first pillar of the pension insurance at the expense of other revenue.
Of the excess excise revenue, 158.1 million kroons will be spent on road building investments, and of excess revenue from gambling tax, 17 million will be earmarked for cultural and sports investments. Nearly 12 million kroons will go to other spheres.
It became possible to draw up a supplementary budget this year thanks to excess inflow of taxes and a better than expected economic performance.
In August the Finance Ministry forecast the growth rate of the Estonian economy at 6.5 percent; in February the ministry forecast the same figure at 5.9 percent.


Estonian Economy grows by 10 percent in second quarter fast grow rate

Sept 05
- According to preliminary estimates the economic growth of Estonia in Q2 2005 was 10 percent against the same period in 2004, the Statistical Office reported. An assessment has been given of the economy as a whole. Calculations were based on administrative databases and monthly statistical observations, the board said. The Statistical Office will publish the preliminary figure of the gross domestic product in Q2 calculated by the complex methodology on September 28.
In analysts' opinion Estonia's economic growth in Q2 was mainly sped up by export; the last time economic growth in the country was as high was in Q2 of 2000.
Hansapank analyst, Maris Lauri says that strong growth could be expected, because current indicators referred to strong export. But Lauri said the 10-percent growth exceeded earlier forecasts. On Friday the analyst predicted the Q2 economic growth at 7.4 percent.
In addition to export Lauri also mentioned fast-growing consumption and investments as having an influence of economic growth.
SEB Eesti Ühispank analyst, Ruta Eier said that strong economic growth could be forecast and that as a positive factor; export has started to vigorously pull economic growth. Eier said economic growth was also influenced by strong domestic demand, wages and as a result of it, also by consumption in Q2.
Eier said that these are all preconditions for the continuation of very strong economic growth in the second half of the year.


Estonia's consumer price index up 0.3 percent in August

Sept 07
- The Estonian consumer price index rose by 0.3 percent in August against June figures; the rise against August 2004 was 4.2 percent, the Statistical Office reported.
The prices of goods rose by 0.3 percent in August, with the prices of food items falling by 0.8 percent and those of manufactured goods increasing by 1.4 percent. The prices of services grew by 0.2 percent during the month.
In August compared to July, the consumer price index was affected the most by the average increase in housing expenses, higher prices of motor fuel and the seasonal fall in the prices of vegetables and fruit, the Statistical Office reported.
Compared with August 2004, the prices of consumer goods and services were 4.2 percent higher on the average.
The hike in administratively regulated prices and services was 9.1 percent and in non-regulated prices, 2.4 percent.


Rise in fuel prices jeopardizes adoption of Euro by Estonia

Sept 08
- With a higher proportion of Estonians' expendable income going towards the purchase of fuel compared to the rest of the European Union, there is the risk that the adoption of the Euro could be postponed, the daily Postimees reported.
According to the Statistical Office, consumer prices rose by 4.2 percent yoy in August, whereas the biggest influencers of the price rise were transport, food and housing. The prices of fuel went up by one fifth, public transport by 12 percent and electricity and thermal energy by one tenth.
To adopt the euro, inflation must not be more than 1.5 percentage points higher than the average in three EU countries with the lowest inflation level. To meet that target inflation must remain below 2.35 percent in Estonia.
"In Estonia the share of fuel in the shopping basket is larger than in other EU countries," Hansabank analyst Maris Lauri said. "Therefore one third of the inflation is due only to the hike in fuel prices," she said.


Registered unemployment down

Sept 08
- There were 23,807, or 2.9% of working age residents registered as unemployed at the beginning of the month.
The number of unemployed declined by 3.5 percent compared to August 1, 2004 and by 17.8 percent compared to September 1, 2004, the Labour Market Board reported. In August there were 27,709 unemployed looking for jobs through employment offices.
The number of those turning to employment offices for the first time in August was 3,432, 10.4 percent fewer than the year before.
At the same time the number of new unemployed has increased by 22.3 percent compared with the previous month and achieved roughly the May level after a fall from April to July, the Labour Market Board said.


Currency Rates in Kroons
September 4, 2005

British pound - GBP - 22.884
Canadian dollar - CAD - 10.513
Swiss franc - CHF - 10.143
Danish krone - DKK - 2.098
Japanese yen - JPY - 0.114
Latvian lat - LVL - 22.471
Lithuanian lit - LTL - 4.532
Norwegian krone - NOK - 2.014
Russian rouble - RUB - 0.440
Swedish krona - SEK - 1.685
US dollar - USD - 12.438
Euro - EUR - 15.647



CULTURAL NEWS

Estonia to get first resident catholic bishop since WWII

Sept 10
- Monsignor Philippe Jourdan, apostolic administrator of the Roman Catholic Church in Estonia, was ordained bishop in Tallinn on Saturday.
Pope John Paul II appointed Jourdan, 45, bishop this year on March 23. He is Estonia's first resident Roman Catholic bishop since World War II and only the second since the Protestant Reformation.
Archbishop Peter Stephan Zurbriggen was the main consecrator at the mass where the new bishop was ordained; the mass took place at Tallinn's Oleviste Church beginning at 11 a.m. Saturday.
The first Catholic bishop in Estonia since the Reformation, Eduard Profittlich, served as a priest in Tallinn since 1930 and was ordained bishop in 1936. Following the occupation of Estonia by the Soviet Union in 1940, Profittlich was arrested and in 1941 he died in a Russian prison in February 1942. Following this the Catholic congregations in Estonia were subjected to the diocese of Riga.
From Estonia's regaining of independence in 1991 until March of this year the church organization here has been managed by three papal nuncios, residing in Vilnius.
Jourdan was born in Dax, France, on Aug. 30, 1960. He has studied mathematics in Paris and graduated as an engineer from Lycee Louis-Le-Grand.
In 1980 he joined the prelature of Opus Dei in France and started studying theology in Rome.
Jourdan was ordained priest in 1988. He came to Estonia in 1996 and was appointed vicar general here. Since then he has also been serving as priest of the St. Peter and Paul Cathedral in Tallinn.
In March 2004 he was elected vice president of the Estonian Council of Churches on which he has been representing the Roman Catholic Church since 1997.In addition to French, Jourdan speaks Estonian, Russian, English, Spanish, Italian and German. He is currently completing his PhD thesis in analytical philosophy. Roman Catholic faith is one of the minority religions in Estonia, where the majority of believers are Lutheran. There is also a large number of Russian Orthodox and Ecumenical Orthodox communities in Estonia. According to data from the 2000 census, there are about 5,700 Catholic believers among Estonia's less than 1.4 million residents.





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