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Estonian Review: June 6-12, 2005
15.06.2005
TOP NEWS
FOREIGN NEWS
DEFENCE NEWS
ECONOMIC NEWS
TOP NEWS
Urmas Paet: Main Guidelines of Estonia's Foreign Policy
Jun 7 - Estonian Foreign Minister Urmas Paet addressed the Riigikogu on behalf of the Government of Estonia on Estonia's main guidelines of foreign policy. The address touched on several topics such as security and welfare, EU and NATO membership, the EU neighbourhood policy emphasising on relations with Ukraine, Georgia and Moldova, and relations with Russia.
The Foreign Minister began his speech by covering Estonia's security and welfare. Estonia's foreign policy must contribute to the strength as well as the unity of both the European Union and NATO. It is in our national interest to actively participate in the European Neighbourhood Policy as well as in the development of NATO's Partnership Policy, said the Minister.
The Foreign Minister stated the importance of a strong social and economic welfare and stability zone in the proximity of the European Union and NATO's borders. Thus, the European Union Neighbourhood Policy is the way to achieve that. We regard it as essential, that the new financial instrument, meant for implementing the European Neighbourhood Policy, enable cross-border cooperation between European Union Member States and third countries bordering the Union, as well as cooperation with more distant neighbours noted Paet.
Foreign Minister Paet also underlined Estonia's support for the development of a partnership with Ukraine, as well as the South Caucasus and Central Asian states. Estonia is focusing primarily upon relations with Ukraine, Georgia, and Moldova. Even though, for geographical and historical reasons, we have more contacts and opportunities for co-operation with Eastern states, we also appreciate the importance of co-operation with the European Union and NATO's southern neighbours said the Foreign Minster in his remarks.
The Estonian Foreign Minister remarked that another key area of foreign policy is Estonia's support for Georgia's reforms. Estonia has deployed a defence expert to Georgia's Ministry of Defence, one expert is participating in the European Union's law enforcement mission and one border guard expert is working in the office of the European Union's special representative. Four Estonian experts are working in the OSCE Mission in Tbilisi.
Ukraine and Georgia are also Estonian development co-operation priorities. We have, conducted training courses for Georgian and Ukrainian government and local administration officials, so as to support and help develop the civil services of these countries. The traditional subject of major interest has been our experience with acceding to the European Union, added Paet.
In touching upon Russia, the Foreign Minister found that it is essential, that the European Union have, for c-ooperating and developing relations with Russia, a clear and unified political plan based upon common European values. Estonia wishes to see developments in all spheres of European Union and Russian relations, so that there would be uniform progress in all cooperation spaces, said Minister Paet.
Acceleration of economic growth in Estonia surpasses Government's expectations
Jun 06 - The initial economic growth estimate of 7.0 per cent for the first quarter of 2005 surpassed the expectations of the Estonian Ministry of Finance.
The faster growth was mainly driven by exports, while the increase in domestic demand was strong too, the Ministry said in its commentary to the figure released by the Statistical Office.
Estonia's economic growth rate was greater than 7 per cent last in the summer of 2002. Economic growth in the European Union slowed down to 1.7 per cent in the first quarter because of growth halting in Germany and a decline in Italy.
"The economy should continue to grow rapidly in the second quarter," the Finance Ministry said. "The economic confidence index has grown every month of this year," it said.
Growth in exports has continued at a rapid rate in the second quarter and increase in domestic demand hasn't slowed down significantly either, the commentary said.
"The increase in private consumption is boosted by consumers optimism, although the increase in expenditures for consumption may be curbed by the substantially bigger loan burden of residents," the Ministry said.
At the same time, the growth expectations of the European Union are getting increasingly more pessimistic and indicators of economic confidence are declining, it added.
Estonia to donate ammunition, computers to Iraq
Jun 09 - Estonia will donate the equipment for a computer classroom to Iraq's police academy and more than a million rounds of ammunition to the Iraqi army.
The contribution of NATO member states to military operations was a central topic at a session of the North Atlantic Council that took place in Brussels in the framework of the NATO Defence Ministers meeting.
Estonian Defence Minister Jaak Jõerüüt underlined the need to give all-round support to Iraqi security forces in the process of their training. "Estonia for its part has provided modern equipment for a computer classroom that is to be put at the disposal of the police academy in Baghdad. Also, a shipment of 1.1 million rounds of ammunition has been assembled and is waiting for transportation," Jõerüüt said.
In accordance to the decision of the Riigikogu, Estonia will increase its participation in the reconstruction of Afghanistan in the NATO-led operation, the Minister said.
FOREIGN NEWS
Paet: The clear objective of the CBSS must be the increasing of environmental safety
Jun 10 - Foreign Minister Urmas Paet participated in the Foreign Ministers meeting of the Council of the Baltic Sea States in Szczecin.
The Foreign Ministers of the Baltic Sea States focused on three topics: co-operation in the Baltic Sea region, cross border propositions and environmental protection. A new statute for the CBSS was adopted at the meeting and Dr Gabriele Kötschau, the former Deputy Parliament Speaker of Schleswig-Holstein was appointed as the new Director of the CBSS Secretariat.
Urmas Paet said in his speech that he views the CBSS as a big umbrella over several regional actions and programmes, which need highlighting, encouraging and management through the political will of the Member States to make progress. "We must be a forum for co-operation, where the needs of the region are discussed and we must alertly react to the changes and new requirements," Paet acknowledged.
Speaking of increasing environmental protection and marine safety, Foreign Minister Paet said that the Baltic Sea States are dependant upon safe and secure maritime transport. "We have to realise that all steps we take to reduce accidents and pollution in the Baltic Sea are not only in the interests of preserving the environment, but also in the interests of sustainable maritime transport," Paet underscored. The Estonian Foreign Minister emphasised the importance of prohibiting the traffic of single-hull tankers in the Baltic Sea. "That might in future become an example for other seaside regions," he added.
"Every bigger accident connected with oil transportation has grave consequences for shipping, as well as for ship building," Paet said. "So, let us agree on preventive activities than face the irreversible damage to the economy, environment, as well as to political relations," Estonia's Foreign Minister stated.
According to Foreign Minister Paet the role of the CBSS as the developer of dialogue between the European Union and Russia has grown. "Further co-operation should be based on demand, as well as be capable of yielding results and focus on those areas, where the CBSS can give added value to the EU's strategic partnership with Russia," Paet noted. Such areas are certainly cross border co-operation, the fight against organised crime, economic co-operation and marine safety as well as marine environmental protection.
The meetings of the CBSS Foreign Ministers take place every two years and this meeting was the thirteenth.
Estonian Parliament panel rules to add preamble to border treaties with Russia
Jun 07 - The Foreign Affairs Committee of the Estonian Parliament ruled to add an explanatory preamble to the bill of ratification of border treaties with Russia.
The text approved by the panel says the legislature is endorsing the border treaties proceeding from legal continuity of the Republic of Estonia proclaimed on Feb. 24, 1918. The Parliament also notes that the border agreement, while partly altering in agreement with Article 122 of the Constitution the state boundary as determined by the Tartu Peace Treaty of 1920, does not affect the rest of the peace treaty nor predetermine the handling of bilateral issues not related to the border treaties.
Estonia to offer Georgia defence expertise and assistance
Jun 10 - Estonia and Georgia will in the near future start drafting an annual plan for bilateral defence co-operation, the Defence Ministers of the two countries have agreed.
Estonia's Defence Minister Jaak Jõerüüt and his Georgian counterpart, Irakli Okruashvili, spoke about plans for bilateral defence co-operation during a meeting held within the framework of the Euro-Atlantic Partnership Council in Brussels.
Jõerüüt said that being a NATO member Estonia was glad to offer its experience and assistance, having gone through the same path that lies ahead for Georgia. Estonia, for instance, is planning to share with Georgia its experience in military reform.
The Ministers also decided that the countries would in the near future start drawing up an annual plan for bilateral defence co-operation.
The meeting also touched upon matters related to the so-called frozen conflicts or Georgia's separatist regions of South Ossetia and Abkhazia, and the withdrawal of Russian troops from Georgia.
Agreement for Training Police Officers was signed between Estonia and Jordan
Jun 9 - Estonian Ambassador to the Federal Republic of Germany Clyde Kull and Jordanian Ambassador Saleh Rusheidat signed an Agreement between the Republic of Estonia and the Hashemite Kingdom of Jordan for the training of police officers at the Estonian Embassy in Berlin.
Pursuant to the Agreement Jordan will implement Estonian police officers in the training of the Iraqi Police Service in Jordan.
In October 2003, the Coalition Provisional Authority ruling Iraq signed a Co-operation Protocol with the Government of Jordan under which the Jordan International Police Training Centre was established near Amman, Jordan. The purpose of the Training Centre is to enable the training of Iraqi police officers in accordance with international standards. Nearly 300 international police experts from the USA, the European Union and from other countries work in the Training Centre as instructors.
On 26 February 2005, the Estonian Ministry of Internal Affairs sent the Director of the Public Service Academy Police College Andres Anvelt on a 6 month mission as a police instructor to the Training Centre.
Nordic and Baltic PMs: ratification of Constitutional Treaty must continue
Jun 10 - The Prime Ministers of the Baltic and Nordic countries that are EU members arrived at the conclusion during their talks that the ratification of the EU Constitutional Treaty must continue.
Meeting in the Danish capital Copenhagen, the Heads of Government found that the treaty provides the best framework for European co-operation and that no new negotiations should be opened.
Speaking about the EU financial perspective, the Heads of Government said that the compromise by the Luxembourg Presidency was a good basis for agreement.
As the focus of the Nordic and the Baltic region, they pointed out research and development and the importance of education. Estonian Prime Minister Andrus Ansip named defending the EU's external border as an additional matter of importance for Estonia.
Mayor of Estonian capital meets with opposite number in Moscow
Jun 06 - The visiting Mayor of Tallinn met with his Russian counterpart in Moscow. Yuri Luzhkov welcomed the visitors from Tallinn and observed that regardless of certain tensions in Estonian-Russian relations the capitals can and must develop co-operation.
Tõnis Palts described the state of relations between the two countries as promising, noting that this is indicated among other things by the recent signature of the border treaties.
Appraising the co-operation of the capital cities, Palts said the world experience knows many cases where capital cities have been the engine for the normalisation and development of relations.
"By developing co-operation, we are building relations characteristic of neighbours," Tallinn's Mayor said.
Moscow officials showed particular interest in Tallinn's experience of privatisation of municipal businesses and the introduction of information technology in running municipal affairs. Palts said Tallinn is ready to share its experience with the Russian capital.
The two Mayors opened a concert in the memory of the famous Estonian baritone Georg Ots (1920-1975) conducted by Estonia's Eri Klas.
The Tallinn delegation includes Deputy Mayors Kaia Jappinen and Toivo Promm, and Members of the City Council Vladimir Afanasjev, Vladimir Velman and Tiina Mägi.
Estonian President appoints new Ambassador to Moscow
Jun 06 - Estonia's President signed a resolution appointing Matti Maasikas Extraordinary and Plenipotentiary Ambassador to Russia. Maasikas currently represents Estonia in Finland. President Arnold Rüütel recalled the Ambassador to Russia Karin Jaani.
DEFENCE NEWS
First Estonian reserve officer to embark on mission abroad
Jun 11 - Capt. Ülo Isberg will be the first Estonian reserve officer to be sent on a mission to a foreign country. Isberg, an active reserve officer, will replace Capt. Neeme Brus who has served at the information department of the coalition forces in Iraq since December 2004.
"My task will be to inform the Estonian public and support our soldiers," Isberg, 52, said.
President Arnold Rüütel conferred on Isberg the temporary military rank of Captain for the period he spends on the mission. Isberg will depart for Iraq together with members of the Estonian light infantry platoon ESTPLA-11.
Estonian General sends Estpla-11 off to Iraq
Jun 12 - Brig. Gen. Alar Laneman, Chief of the General Staff saw off the Estonian light infantry platoon Estpla-11 on its way to serve in the operation Iraqi Freedom.
"You are going to Iraq sent by the Estonian people," Laneman said. "Do not forget for a moment that by your activity you represent the whole Estonian state and the Estonian people. It is a great honour and simultaneously a great responsibility."
Laneman expressed the conviction that the platoon had a good team spirit and training. "As a result your achievements during the service can only be excellent. I am sure you will show to the rest of the coalition that an Estonian soldier is the best comrade-in-arms," he said.
The Estonian Ambassador to the United States Aldona Wos was also present with her family to send off the Estonian soldiers.
The Commander of Estpla-11 is Lt Sergei Guselnikov.
ECONOMIC NEWS
CPI up 0.2 per cent in May in Estonia
Jun 07 - The Estonian consumer price index (CPI) climbed 0.2 per cent in May compared to April, the Statistical Office reported.
The prices of goods grew 0.1 per cent of this the price of groceries increased 0.5 per cent while the prices of manufactured goods fell by 0.3 per cent. The prices of services went up by 0.3 per cent in May.
The consumer prices were affected by higher prices of vegetables and transport services, and discount offers of communication services.
The prices of consumer goods and services were 2.8 per cent more expensive on the average than in May 2004. The hike in administratively regulated prices of goods and services was 5.5 per cent and non-regulated prices by 1.7 per cent.
Estonia in favour of unifying VAT in EU
Jun 08 - Estonian Finance Minister Aivar Sõerd, attending a meeting of European Union (EU) Finance Ministers, found that it is necessary to unify value-added tax rates.
"Estonia should stand for a stable value-added tax system where avoidance of exceptions would be an important principle. Besides, analyses made by the European Commission show that the exceptions in effect today have not significantly influenced the development of the respective sectors. The fewer exceptions there are the simpler it is for the tax administrator to administer the value-added tax," Soerd said.
On the initiative of France and other member countries the EU Finance Ministers attempted to reach an agreement concerning labour-effective services.
At the moment, there is a 15 per cent minimum standard value-added tax rate effective in the EU, and it is possible for member countries to apply lower rates as temporary or permanent exceptions.
The Ministers also discussed the extension of the above permanent rates to new services and goods.
Germany, Denmark and Estonia were clearly against the extension of the lower rates to labour-extensive services and other exceptions.
"I believe that value-added tax is not an effective means for the implementation of social policy; there are more effective measures to do it. In order to ensure fair competition throughout the bloc and to avoid tax tourism it is necessary to unify the value-added tax rates," Sõerd said.
The Ministers reached an agreement concerning keeping the standard 15 per cent minimum rate, but the tangled discussions concerning exceptions will continue in the second half of the year under the British Presidency.
Currency Rates in Kroons
June 12, 2005
British pound - GBP - 23.351
Canadian dollar - CAD - 10.185
Swiss franc - CHF - 10.204
Danish krone - DKK - 2.101
Japanese yen - JPY - 0.1189
Latvian lat - LVL - 22.481
Lithuanian lit - LTL - 4.531
Norwegian krone - NOK - 1.997
Russian rouble - RUB - 0.450
Swedish krona - SEK - 1.697
US dollar - USD - 12.800
Euro - EUR - 15.647
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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