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Estonian Review: May 23-29, 2005
01.06.2005
TOP NEWS
FOREIGN NEWS
ECONOMIC NEWS
TOP NEWS
Estonia Signs Memorandum of Understanding on EU Battle Group
May 23 - A Memorandum of Understanding between Sweden, Finland, Estonia and Norway concerning the forming of a EU battle group has been signed in the Council of the European Union in Brussels.
The Defence Ministers of Sweden, Finland, Estonia and Norway signed the Memorandum. Sweden will assume responsibility as the framework nation of the Nordic battle group.
"Considering the fact that Estonia is the only member of the battle group that is both a member of NATO and the European Union, our participation in a battle group with Sweden, Finland and Norway is a sign of strengthening of our partnerships with other nations," said Defence Minister Jaak Jõerüüt. He added that, "Estonia continuously believes that it is important for the EU's common foreign policy to have a strong defence component, because that is the only way to protect the values and principle's of the European Security Strategy".
Estonia's military contribution to the EU battle group will be up to 45 troops. In addition to a forces protection unit, Estonia will provide staff officers, medical and logistic personnel. Estonia supports the view that this particular battle group will be ready for the rotation from 1 January to 30 June 2008.
Paet: Fundamental human rights were ignored in Uzbekistan
May 23 - The events in Uzbekistan were under sharpened attention at the two-day European Union Foreign Ministers Council in Brussels. According to Foreign Minister Urmas Paet, the situation in Uzbekistan is causing concern. "The attempt of the Government to solve domestic conflicts in such a brutal way demonstrated that the obligation to defend fundamental human rights was violated. The right to life that is the duty of all members of the UN was ignored there," Paet said.
In the final conclusions, the Foreign Ministers condemned the use of force and emphasised that the Uzbekistan authorities have to respect the principles of democracy, rule of law and human rights. The Foreign Ministers called for the immediate organisation of an international investigation and for the ensuring of unimpeded deliveries of humanitarian aid. According to EU External Affairs Commissioner Benita Ferrero-Waldner, a delegation will shortly leave for Uzbekistan with the task to view and analyse what the EU can do to improve the situation and help support necessary reforms.
Foreign Minister Paet added that the continuation of the information blockade is unacceptable. "The Uzbekistan authorities must ensure the free movement of international observers and journalists, to find out what actually has taken place there. The official tour of the town void of people organised for ambassadors, where no opportunity was given to speak to the local inhabitants, was a farce," Paet said. In his assessment, Karimov's refusal to allow an international investigation contradicts Uzbekistan's official version of what happened.
According to Paet, the unrest was due to the difficult economic situation in the country. "Uzbekistan has to introduce relevant economic reforms, which would solve social tensions resulting from poverty. Without reforms it will not be possible to develop democracy and consequently stability in society," the Foreign Minister added.
"So there are two important tasks before the European Union: to give an adequate assessment of the events and to avoid further victims or an escalation of the situation, because Uzbekistan's stability or the lack of it will have an impact on the situation in the whole region," Paet underlined.
At the working lunch, the Foreign Ministers discussed the state of play of the Middle East peace process, the situation in Iraq and the talks with Iran that are on the verge of breaking down.
At the External Relations session, the EU - Mediterranean Foreign Ministers' meeting that is to take place next week and the situation in Sudan, Guinea-Bissau and Burundi were under discussion. The Luxembourg Presidency gave an overview of the implementation of the European Union Action Plan for the relief of South and South East Asia and of aid allocated so far at the evening session.
According to Urmas Paet, Estonia has allocated a total of 5.42 million kroons as support for the victims, which is complemented by private donations amounting to 3.9 million kroons.
At the General Affairs session, the Foreign Ministers prepared for the European Council in June, the main topic of discussion will be the Financial Perspective for 2007-2013.
Paet: rendering aid is the obligation of all self-respecting countries
May 24 - A meeting of the Development Ministers took place in the framework of the Foreign Ministers Council in Brussels, where issues connected with the funding of development co-operation, the European Action Plan for fighting against AIDS, tuberculosis and malaria and the revision of the European Union's joint development co-operation policy statement were under discussion.
In assessing Estonia's participation in development co-operation, Urmas Paet said that, " The most important thing for Estonia is that we have become a country that gives aid. Although our opportunities are scarce, our means modest and it will take time for us to attain our desired aims, we try to help those who need either direct help or our experience."
The Ministers adopted a declaration, on which a compromise was reached at yesterday's dinner. Being the world's leading provider of development aid, the EU has set itself a goal for development aid to equal 0.7% of GNP of the Member States in 2015.
This level is not attainable for many of the new member states. For that reason, the Development Ministers decided that the 15 older Member States will aim for the level of 0.7% of GNP by 2015 and the states having acceded after 2002 will try by that time to raise their share of development aid to 0.33% of GNP if possible. Intermediary goals of 0.51% and 0.17% of GNP have been set for 2010.
According to Foreign Minister Paet, Estonia spent0.02% of its GNP on development co-operation. Last year's overview will be ready in the near future. "It has to acknowledge that expectations of the new Member States are higher than our capabilities today and in the near future. We have already set 0.1% of GNP as a target level to be reached by 2010. Each country can still contribute according to its means and I am satisfied to note that our decision today with regard to new Member States takes that into consideration," Paet said.
According to the Foreign Minister, supporting those in need is the duty of every country. "It was good to see how responsive and willing to help the victims of the South East Asia tsunami from their own pocket our people were," the Foreign Minister remarked. In addition to 5.42 million kroons allocated by the state, people gave more than 3.9 million kroons to different aid organisations.
FOREIGN NEWS
Paet: We support an international investigation into the Uzbekistan events
May 25 - Foreign Minister Urmas Paet participated in the NATO Euro-Atlantic Partnership Council (EAPC) meeting "Managing Security - Our Common Challenge" in Åre, Sweden from 24-25 May.
The Foreign Ministers of 46 NATO member and partner countries as well as other high ranking officials focused on security issues concerning unsolved conflicts in Europe, NATO partnership relations, co-operation in Central Asia and co-operation between international organisations.
The Estonian Foreign Minister in his speech called the situation in Uzbekistan alarming and called on the international community to observe the developments there. "Estonia has always favoured a peaceful solution of conflicts and expresses hope that the internal challenges existing in Uzbekistan will be resolved by negotiations involving all concerned parties preventing further bloodshed," Paet said. Estonia supports the start of investigations by international organisations into the events in Abijan," he underlined.
Speaking of frozen conflicts in Europe, Paet considered it important to draw more attention to the resolving of conflicts in South Caucasus and Transnistria. "In the future, we will continue to need international efforts focusing on the resolving of difficult situations also in South Ossetia and Abkhasia," Paet noted. The Foreign Minister called the resolving of the Transnistrian conflict a prerequisite for Moldova's stability and development.
In the framework of the EAPC forum, the Estonian Foreign Minister also met with Croatian Foreign Minister Kolinda Grabar-Kitarovic. The ministers expressed satisfaction over the development of relations between the two countries and the Estonian Foreign Minister expressed support for Croatia's EU and NATO aspirations. "We hope that Croatia will continue efforts in ensuring full co-operation with the International Criminal Tribunal for the former Yugoslavia," Paet said.
Estonian Parliament's Foreign Affairs Committee delegation meet with US Congressmen
May 26 - A delegation of the Estonian Parliament's standing Foreign Affairs Committee visiting the United States met with staunch supporters of the Baltic States, Congressmen John Shimkus and Dennis Kucinich.
The discussion with the co-chairs of the Baltic Caucus of the House of Representatives focused on a resolution calling on Russia to condemn the Soviet occupation of Estonia, Latvia and Lithuania, which is being debated in the House and which the Senate endorsed last week.
The resolution initiated by Shimkus, states that the Russian Federation should issue a clear and unambiguous statement of admission and condemnation of the illegal occupation and annexation of the Baltic states by the Soviet Union from 1940 to 1991.
Elton Gallegly, Chair of the Europe and Emerging Threats Subcommittee of the House International Relations Committee, who also met with the Estonian lawmakers, noted the Baltic state's good preparation for joining NATO and thanked Estonia for its contribution to international peace efforts in Afghanistan and Iraq.
The Estonian delegation stressed at meetings with representatives of Congress, the Bush administration and nongovernmental organizations the importance of transatlantic co-operation. The Head of the Foreign Affairs Committee, Enn Eesmaa, reaffirmed Estonia's continued readiness for further development of relations on the bilateral as well as international level.
Other subjects discussed in the meetings included co-operation between Europe and the United States, possible lifting of visa requirements for Estonian citizens, developments in Russia, Georgia, Ukraine and Uzbekistan, and President George W. Bush's speech in Riga.
The President of the Republic on state visit to Bulgaria
May 26 - President Arnold Rüütel and Mrs. Ingrid Rüütel arrived in Sofia late yesterday night to begin the state visit to the Republic of Bulgaria. The Estonian Ambassador to Bulgaria Aivo Orav, the Bulgarian Ambassador to Estonia Venelin Cachevski and Estonia's Honorary Consul in Bulgaria Boris Halatchev greeted the Presidential couple at Sofia airport.
This morning, an official welcoming ceremony was held in Alexander Nevsky Square in downtown Sofia. The President of the Republic of Bulgaria Georgi Parvanov and Mrs. Zorka Parvanova greeted the Head of Estonian state and his wife. President Rüütel laid a wreath on the grave of the Unknown Soldier. After that, the Estonian official delegation proceeded to the Presidential Palace where a tête-ą-tête meeting of the Presidents and a meeting of the delegations took place.
At the meeting, Estonian-Bulgarian bilateral political, economic and cultural relations as well as the further enlargement of the EU and co-operation within the framework of NATO were discussed. President Rüütel noted that the Estonian-Bulgarian relations had always been good, but had not been very intensive. At the meeting, Minister Edgar Savisaar highlighted Estonia's experience in the energy sector, the implementation of tax reforms and the co-operation of Baltic Sea countries in the protection of the environment. Vice-Admiral Tarmo Kõuts spoke about close co-operation between the Estonian and Bulgarian defence forces. At the press conference following the meeting of delegations, President Parvanov thanked Estonia for the support given to Bulgaria's EU accession aspirations.
In the afternoon, the President of the Republic addressed the Estonian-Bulgarian business forum at the Bulgarian Chamber of Commerce and Industry. The speed of Bulgaria's economic development and favourable investment environment arouse great interest on our part to intensify our relations. A good basis for further development has been created by successful reforms and the forthcoming EU accession. The size and quality of the business delegation we have with us demonstrates our lively interest in Bulgaria as a co-operation partner, President Rüütel said.
Visiting the Bulgarian National Assembly, the Head of Estonian state met with the Chairman of the National Assembly Borislav Lubenov Velikov. The meeting addressed the possibilities of further development of Estonian-Bulgarian relations, including the inter-parliamentary co-operation.
The members of the Estonian delegation had their own separate meetings. The Chief of the Defence Forces Vice-Admiral Tarmo Kõuts met with the Chief of Staff of the Bulgarian Armed Forces General Nikola Kolev and the commanders of the General Staff, and visited the Air Sovereignty Operational Centre (ASOS). Minister of Economy and Communications Edgar Savisaar met with the Bulgarian Minister of Economy Milko Kovachev. President of the Bank of Estonia Vahur Kraft met with Governor of the Bulgarian Central Bank Ivan Iskrov.
The 24-member business delegation, accompanying the President, visited the Bulgarian Chamber of Commerce and Industry where they were given an overview of Bulgaria's foreign investments, terms of foreign trade, business environment and real estate development. After that, the business delegation participated in the Business Forum.
Estonian rescue team's logistics group arrives at Indonesian destination
May 27 - The Estonian rescue team logistics group that left for a two-month mission in Indonesia earlier this week arrived at its destination today.
The three member Est-log 2 team arrived in Calang on the western coast of the island of Sumatra and will take over the field camp of UN relief organisations located there from Est-log 1 that has been working there since April.
The leader of the team is Riho Salong, Head of the Rescue Board's Co-ordination Centre.
The group's task is to ensure logistic support for the co-ordinators and organisers of international post-disaster rebuilding efforts and the functioning of the UN field camp.
Est-log 1 will return to Estonia on 30 May after handing over the camp to Est-log 2. Logisticians of Est-log 1 took over from a Norwegian support group at the end of April.
Estonia acquires its fourth Honorary Consul in Sweden
May 25 - Foreign Ministry Undersecretary for Legal and Consular Affairs Marina Kaljurand opened a new Estonian Honorary Consulate in Sweden, Eskilstuna. The new Estonian Honorary Consul in Sweden is Harriet Lagebo.
Estonian Ambassador to Sweden Jüri Kahn, Mayor of Eskilstuna Jonny Lundgren and the representatives of the local government participated in the opening.
The new Honorary Consul will be located at Fristadstorget 10, 632 20 Eskilstuna and her contact numbers are phone/fax +46 16 132 092.
Estonia also has Honorary Consuls in Visby, Malmö and Karlskrona, Sweden.
ECONOMIC NEWS
Estonia's unemployment rate down to 9.5 per cent in Q1
May 23 - The unemployment rate in Estonia in the first quarter of 2005 was 9.5 per cent, an improvement compared with the 10.1 per cent jobless rate posted for the first quarter of 2004, the Statistics Office said.
The unemployment rate decreased in all regions except for Northern Estonia, where the rate was 8.9 per cent (up from 8.8 per cent in the first quarter of 2004).
A major factor behind the decline in unemployment was lower unemployment among young people. The unemployment rate of residents aged 15-24, which rose to a record 27.2 per cent in the first quarter of 2004, decreased in the next three quarters. In the fourth quarter it dropped to 14.7 per cent, while in the first quarter of 2005 it slightly rebounded to 15.1 per cent.
Number of public WiFi covered areas in Estonia surpasses 500
May 23 - The number of public WiFi covered areas in Estonia has reached 505, up from 430 at the beginning of this year.
Veljo Haamer, Editor of wifi.ee, said the list shows WiFi covered areas checked and registered by wifi.ee. These areas can be found also with the WAP service.
Approximately 200 of the WiFi covered areas charge their users a fee and about 300 offer the service for free. The free areas have been created by forward-looking local governments and restaurants and hotels seeing this as an additional bonus to their customers.
Haamer mentioned Haapsalu, Kuressaare, Parnu, Narva, Tartu and Tallinn as progressive-minded local governments that are helping to establish WiFi coverage in cafes and parks.
Estonia's Q1 average wages and salaries up 10 per cent on year
May 24 - The average monthly gross wages and salaries of full-time and part-time employees of enterprises, institutions and organizations in Estonia equalled 7 427 kroons (EUR 475) in the first quarter of 2005, having increased 10.1 per cent over the same period a year ago.
The average hourly gross wages equalled 45.37 kroons, being 11.3 per cent higher than during the January-March period in 2004.
Monthly gross wages and salaries increased the most in hotels and restaurants -- 28.1 per cent and decreased the most in fishing -- 2.5 percent.
Estonia's mobile penetration rate almost 95 per cent
May 25 - The percentage of mobile telephones users in Estonia's population climbed to 94.7 per cent in the first quarter of 2005, compared with 93.2 per cent at the end of 2004, figures by the Communications Board show.
Rivo Mets, Head of Department at the Communications Board, said mobile penetration is expected to rise to 100 per cent by the end of this year or in early 2006.
Similar figures were offered by the spokesperson for the country's largest mobile operator EMT, Kaja Pino, who added that the figure shows the number of active SIM cards in the networks, not the number of people who have acquired a mobile telephone.
The Communications Board estimates that the actual number of people using a mobile telephone is probably 8-12 per cent smaller, as suggested by surveys carried out in Sweden and Hungary.
Estonia's March exports grow 12 per cent m-o-m
May 26 - Estonia's exports in March, which totalled 7.68 billion kroons (EUR 491 mln) according to preliminary estimates, increased by 11.7 per cent compared with February, the Statistical Office said.
Imports grew 12.8 per cent compared to February to reach 10.26 billion kroons. The trade deficit in March was 2.58 billion kroons, having expanded by 360 million kroons.
In comparison with March 2004, exports increased by 986 million kroons or 14.7 per cent and imports by 1.2 billion kroons or 13.4 per cent. The trade deficit in March 2004 totalled 2.35 billion kroons.
In March, the share of EU countries in imports was 73 per cent and the share of CIS countries in imports was 13 per cent. The main trade partner in imports was Finland with 19 per cent of total imports.
The share of EU countries in exports was 79 per cent in March while CIS countries accounted for 8 per cent of total exports. Just like in imports, Finland was the main trade partner in exports with 26 per cent of the total of goods leaving Estonia.
EU sugar committee rejects Estonia's objections
May 26 - The European Commission's Sugar Committee endorsed 91 464 tons as the size of Estonia's excessive sugar stocks at accession to the European Union, discarding the Baltic country's argument that a large part of it had been stocked for private consumption.
"At the meeting of the Management Committee for Sugar in Brussels today 91 464 tons was endorsed as the excessive amount of sugar in the case of Estonia, which shows that the Commission didn't take into consideration the Estonian argument that sugar bought by households should be deducted from the total amount of excessive stocks," spokespeople for the Estonian Ministry of Agriculture said.
The Ministry said Estonia has decided to prepare a lawsuit to contest the inclusion of sugar stocked by private individuals in the overall stocks deemed as excessive in the European Court of Justice.
Companies that owned excessive stocks of sugar have until 30 Nov. to remove the excess sugar from the market. If the entrepreneur fails to do it, the established penalty for excessive stocks has to be paid, which the state can use to pay the so-called sugar fine to the EU.
Estonia: Tallinna Vesi announces stock's IPO price at EEK 144.7
May 27 - The price of Tallinna Vesi stocks in the initial public offering is 144.7 kroons (EUR 9.25), the water company of the Estonian capital Tallinn announced after the bids were examined.
"After the expiry of the term for submission of purchase offers, the final sale price of the Offer Share is to be 144.73105 kroons, which is equal to the final sale price of the A share in the institutional offering (9.25 euros)," Tallinna Vesi said.
The public offering offered for sale 1.2 million A shares, up to six percent of all A shares. Investors submitted purchase offers complying with valid requirements for the acquisition of a total of 1,961,206 A shares. Demand for the shares exceeded the amount offered 1.6343 times.
The total demand by investors in the institutional offering exceeded the amount of shares on offer by approximately seven times. A total of 4.8 million shares were distributed in the course of the institutional offering.
Currency Rates in Kroons
May 29, 2005
British pound - GBP - 22.762
Canadian dollar - CAD - 9.861
Swiss franc - CHF - 10.115
Danish krone - DKK - 2.102
Japanese yen - JPY - 0.116
Latvian lat - LVL - 22.478
Lithuanian lit - LTL - 4.531
Norwegian krone - NOK - 1.957
Russian rouble - RUB - 0.445
Swedish krona - SEK - 1.702
US dollar - USD - 12.481
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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