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Estonian Review: January 31-February 6, 2005

10.02.2005

TOP NEWS
FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS




TOP NEWS

Estonian Foreign Minister promises all-round assistance to Georgia

Feb 05
- Estonian Foreign Minister Kristiina Ojuland, who recently completed her visit to Georgia, said Estonia would continue to give all-round assistance to Georgia in the implementation of reforms and integration into western structures.
Ojuland met with President Mikhail Saakashvili, speaking with him mainly about problems important to Georgia, including the presence of Russian Military Forces and border monitoring. The Estonian Minister also expressed deep condolences on the unexpected death of Prime Minister Zurab Zhvania.
The Foreign Minister and the President also discussed border monitoring, where it was determined that the monitoring of the Russian-Georgian border in the Dagestan, Chechnya and Ingushetia sections is of importance.
During her meeting with Saakashvili, the two politicians also discussed Georgia's preparations for accession to the European Neighbourhood Policy as well as Georgia's NATO Individual Partnership Action Plan. Ojuland said it was similar to the earlier Estonian Annual Action Plan and so it was possible for Estonia to share its experience with Georgia.
Foreign Minister Ojuland also met with her colleague Salome Zurabshvili. The main discussion topics were Georgia's preparation of an EU Neighbourhood Policy action plan, border guard missions problems and bilateral relations including development co-operation.
Foreign Minister Zurabshvili gave an overview of the compilation of the action plan. According to Kristiina Ojuland, Estonia is happy that Georgia is being included in the European Neighbourhood Policy and that Estonia was one of the eager supporters. “The decision regarding the Action Plan will depend on the progress of Georgian reforms and the desire to find a solution for the regions conflicts,” emphasised Ojuland.
In discussing the border guard mission, the Georgian Foreign Minister stressed that Georgia would like for the border guard mission to continue, so that they don't find themselves in a vacuum where the borders are not being guarded. Estonia supports the continuation of border patrols said Ojuland, adding that “We do not support the view that individual states rather than international organisations should patrol the borders”.
Minister Ojuland also met with Defence Minister Irakli Okruashvili where the main discussion topic was Estonian-Georgian defence co-operation. The parties found that co-operation between the two Defence Ministries had considerably stepped up. The two Ministers stated that dispatching of an Estonian Defence Adviser, Harry Lahtein, to the Georgian Defence Ministry last June had considerably contributed to this. "We hope that Estonia with its support can contribute to Georgian aspirations in that sphere," Ojuland said. The Estonian plan to open a military representation in Georgia with the aim of promoting further co-operation was warmly received by the Georgian Defence Minister, Ojuland said.
Ojuland added that the Georgians think highly of the Estonian e-Academy and a tiger leap programme is being drawn up with Estonian assistance.


Ojuland: Implementation of Ukraine's Action Plan Must Begin as Soon as Possible

Jan 31
- Foreign Minister Kristiina Ojuland participated in the General Affairs and External Relations Council meetings in Brussels.
At the general affairs session, the Foreign Ministers discussed this year's working programme of the Council of the European Union and the Commission, as well as issues connected with the cohesion policy of the financial perspective for 2007-2013.
Speaking about the Regional and Cohesion Policy Funds and the computing system for allocating assistance, Foreign Minister Kristiina Ojuland emphasised that the current system, according to which the financial contribution ceiling of 4% of the GDP of the Member States would mean the diminishing of assistance from the Structural Funds for Estonia and other smaller Member States with rapid economic growth as of 2007.“The computing of assistance should be directly connected with the real economic growth of Member States. Currently, an average annual growth rate of 4.1% has been taken as a basis for computing assistance. However, in the case of Estonia, an economic growth of 6.75% can be anticipated. Not taking that into consideration would deprive Estonia of a very large amount of money,” Ojuland said. The Foreign Ministers submitted their positions to their colleagues; the final discussion is still to come. The Luxembourg Presidency wishes to reach a political agreement on the overall financial framework by the European Council convening in June.
The main topics of the Foreign Ministers working lunch were the Iraqi elections and the situation in the Middle East. In the final conclusions concerning Iraq the Foreign Ministers confirmed the continuation of European Union support and emphasised that their goal is a safe, undivided, developed and democratic Iraq that will develop in constructive co-operation with its neighbours and international community.
According to Ojuland, it is important that after the outcome of the Transitional National Assembly elections are announced and after the new Government takes office, to help and support the new Government in the stabilising the country. “The priority is the active participation of states and international organisations in the building of Iraqi law enforcement agencies so that the legitimate Iraqi Government is able to ensure security without the presence of foreign armed forces. That would help the Iraqi population as well as other Arab countries to better adopt the Iraqi Transitional Government, ” Ojuland said.
At the foreign relations session co-operation with Ukraine and the Action Plan compiled for rendering assistance to the victims of the South East Asia disaster, as well as issues connected with the Western Balkans, Sudan and Cuba were discussed.
The Foreign Ministers expressed their support for the Ukraine Action Plan and confirmed the EU's readiness to render comprehensive assistance to Ukraine. In Kristiina Ojuland's opinion, the European Union holds a very positive attitude towards co-operation with Ukraine, but Ukraine's own homework and the ability of the new Government to make the necessary domestic policy changes will remain decisive. “Currently, the key priority is the implementation of the European Union Action Plan for Ukraine that is to be started as soon as possible,” Ojuland said. “The European Union supports Ukraine's accession to the World Trade Organization (WTO), we also support granting them market economy status. That will give new impetus to Ukrainian economic development and raise the self-confidence of the state,” the Foreign Minister said. Speaking about the possible future accession of Ukraine to the European Union the Foreign Minister said that it would primarily depend on the Ukrainian reforms “Our expectations in that respect are very high” she added.
The Foreign Ministers approved the Action Plan for rendering assistance to the victims of the South and South East Asia disaster at the meetings. Estonia has supported the development of the Action Plan and emphasised the necessity of closer co-operation among EU countries in reacting to international humanitarian crises. “Estonia is supportive of ideas promoting trade, the temporary abolishment of market protection measures in relation to businesses working in stricken areas, the simplification of origin rules and aspects connected with the system of general concessions,” Ojuland said.
At the same time this natural disaster, as the Foreign Minister said, proved anew the importance of mutual co-operation in rendering assistance to the citizens of the Member States. In Ojuland's opinion, EU common consular protection co-operation should be intensified and EU crisis management should be strengthened. “Estonia should be capable in the case of humanitarian crises to send either a national consular aid unit to the crisis area or participate in the composition of an international aid unit,” the Foreign Minister said.



FOREIGN NEWS

The Estonian and Belgian Foreign Ministers Discussed the Activities and Development of the OSCE

Feb 1
- Foreign Minister Kristiina Ojuland met with her Belgian colleague Karel de Gucht. Bilateral relations, the enlargement of the EU, the European Neighbourhood Policy and other foreign policy themes were discussed at the dinner.
The Foreign Ministers dwelt upon the activities and the further development of the Organization for Security and Co-operation in Europe (OSCE). Belgium will hold the OSCE Presidency next year and the Ministers discussed the state of play and matters connected with the future of the OSCE.
The border monitoring mission in Georgia under the aegis of the OSCE, which the OSCE has decided to end was under discussion. According to Foreign Minister Ojuland, the Georgian border should be monitored by an OSCE mission, but if that is not possible, the European Union will have to fulfil its promise given in December, that in case the OSCE does not continue the mission the European Union will have to make its contribution. “Georgia is worthy of that support, they have asked for it and assistance must be rendered to them,” the Estonian Foreign Minister said.
The Foreign Ministers also discussed problems connected with the European Neighbourhood Policy. Primarily, Ukraine and its potential accession prospects were under discussion; also ideas were exchanged upon the possible effects of further enlargement on the European Union.
According to Ojuland, one should take into consideration that if the Ukrainian people have decided on a free and democratic path they would have to be lent a helping hand. “If they choose the path of European values, we shall not close the door, concrete conditions must be created for them,” Ojuland said.
Speaking of Estonian and Belgian bilateral relations, Ojuland said that the relations between the two countries are very good, but there is room for development first and foremost in the field of economy. According to the Foreign Minister, Estonia is trying in co-operation with the Estonian Embassy in Belgium and with the Honorary Consuls, who took office last year, to do more to introduce Estonia's favourable and stable investment possibilities.
The Foreign Ministers touched upon the Middle East Peace Process and its prospects, as well as the EU's role. Transatlantic Relations and the situation in Belarus and Russia were also discussed.


Estonia's Ilves, fellow Euro-MPs nominate Yushchenko for Nobel Peace Prize

Feb 02
- Estonian European MP Toomas Hendrik Ilves, the first Vice-Chairman of the European Parliament's Foreign Affairs Committee, together with four colleagues nominated Ukrainian President Viktor Yushchenko and the Ukrainian people for the 2005 Nobel Peace Prize.
Their letter to the Nobel Foundation says that the orange revolution in Ukraine led by Yushchenko consolidated democracy and brought freedom to thousands of people.
Awarding the Nobel Peace Prize to the Ukrainian President would be a sign that Ukraine is becoming a modern, democratic European state, the signatories of the letter find.
They said that peaceful, consistent and successful opposition to autocracy, put up by Yushchenko and tens of thousands of Ukrainians, provided a clear signal to the world that democracy will eventually prevail over undemocratic forces.


Estonia needs border treaty - Foreign Minister

Feb 03
- Estonian Foreign Minister Kristiina Ojuland refuted the opinion that Russia needs a border treaty between the two countries but Estonia does not.
In an article in the weekly Eesti Ekspress, Ojuland pointed out a number of reasons. "The national border defined by treaties with the neighbouring countries is each country's attribute of sovereignty," she wrote.
The Minister admitted that Estonia became a member of NATO and the European Union (EU) although it had no border treaty with Russia. "But we have no right to give up now and hope that everything will be settled by itself or with somebody else's assistance," she added.
Among other things, Ojuland referred to NATO air space surveillance, which should make Russia understand that they, too, need a lawfully established border.
The Foreign Minister added that Estonia was making preparations to accede to the common Schengen visa space, which would change the order of entry into the EU. Ojuland reiterated that Estonia was ready to sign the border treaty, but could not accept linking it with any additional terms.


Experts highly evaluate Estonia's readiness to combat terror

Feb 03
- A group of European Union experts evaluated Estonia's readiness to combat terror as well organised and effective.
Hannes Kont, Head of the Interior Ministry domestic security department, said that the general impression of the evaluation mission of Estonia's organisation of activities against terror had been extremely positive.
Niels Bracke, senior administrator of the European Council secretariat, said that the aim of the mission had not been to criticize but to help.
Bracke said Estonia's readiness for a potential terror attack had been impressive and in the delegation's opinion the organisation of anti-terrorist activity was very well built up and effective.



DEFENCE NEWS

Estonian naval divers take part in exercise in Norway

Jan 31
- Five mine countermeasure divers from the Estonian Navy are taking part in the EODEX 2005 mine countermeasures diving exercise in Norway from 31 January to 11 February.
The goal of the exercise is to train the diffusing of submerged explosive devices in a cold environment and collaboration with NATO mine countermeasures units and departments, said spokespeople for the Estonian Defence Forces.
Participants in the exercise will also train locating underwater objects, operations under ice and diving medicine.
The exercise at Ramsund will bring together divers from the United States, Norway, Latvia and Lithuania, as well as observers from Denmark.


Estonia replaces Defence Attaché to Latvia, Lithuania

Feb 01
- Lieutenant Senior Grade Mati Orav formally took over as the Estonian Defence Attaché to Latvia and Lithuania, replacing Maj. Raul Tonnov.
President Arnold Rüütel has temporarily conferred on Orav the military rank of Lieutenant Commander for the period of his assignment as Defence Attaché.
The Estonian Defence Attaché to Sweden and Finland Maj. Jaanus Elvre handed over his duties in Finland to the new Defence Attaché, Maj. Anto Kergand.


Estonian officer to train Iraqi military

Feb 01
- Capt. Rudolf Jeeser of the Estonian Defence forces will soon depart for Iraq on a mission to train officers of the Iraqi armed forces. Capt. Jeeser is the first Estonian officer to serve on the NATO-led mission in Iraq.
President Arnold Rüütel has conferred on Jeeser the military rank of Major for the period of his assignment with the NATO mission in Iraq that is effective from Feb. 5.



DOMESTIC NEWS

Estonia's National Electoral Committee says e-voting worked well in field test

Jan 31
- The Estonian National Electoral Committee has said that the system of e-voting, put to a test during last week's poll regarding the location of the new Freedom Monument in Tallinn, worked well.
However, the load on the system was small -- the system is designed to withstand a much larger workload, spokespeople for the National Electoral Committee said. No serious attacks on the system were detected.
The security of the e-voting system is still subject to checks by auditing companies. "If their evaluation is positive, the National Electoral Committee will consider the pilot project a success and will propose to use e-voting as an additional possibility also at the upcoming local elections," Chairman of the National Electoral Committee Heiki Sibul said.



ECONOMIC NEWS

Faster growth expected in the Estonian processing industry early in 2005

Jan 31
- Slightly faster growth is expected in the Estonian processing industry in the first months of this year than at the end of last year, when growth was more pronounced than expected, Sampo Bank analyst Anne Karik-Uustalu said.
"Speaking about the processing industry, the year-on-year growth was the strongest in the past four years and considering the companies' rather pessimistic opinions of the current situation in December, it was slightly stronger than expected," said Karik-Uustalu.
"Growth in the production of machines and equipment was negative for the second month running, but this could partly be due to the higher basis of comparison," she said. In November and December 2003, growth in machines and equipment production was around 50 per cent.
Karik-Uustalu said that the more modest figures of electric power generation were apparently due to the warm weather in December.
Uhispanga Varahalduse AS (Uhispank Asset Management) Board Member Sven Kunsing said it was the fifth month running that the growth in industrial output corrected by the number of working days had slowed down. "Growth in the processing industry did increase to seven per cent, but that change could be regarded as marginal," he said.
Despite that, Kunsing said, Q4 growth was the slowest of the past year, which could refer to an economic growth slow down. "At the same time, I do not remember when our economic growth depended on production very much -- rather, economic growth in Estonia could be assessed by the number of cars in shopping centre car parks," he added.


Estonia climbing to top in Europe by Internet leased-line connections

Feb 03
- European Union's lowest prices and a constant supply of new services led to a jump in the number of Internet leased-line connections in Estonia last year.
Estonians pay the least in Europe, or half of the EU average, for Internet leased-line connection, according to a survey by the Finnish Communications Ministry.
The price difference with Latvia is meanwhile more than four times. Whereas in Estonia the monthly charge is 340 kroons (EUR 21.7) on average, in Latvia it is more than 1 700 kroons.
Besides the advantageous price, Estonia is among the leaders also in terms of the number of high-speed permanent connections, outstripped by only Denmark, the Netherlands, Belgium, Sweden, Finland and France.
The country's largest telephone company Elion saw the number of its leased-line connections grow in 2004 by more than half, from 50 800 to 77 000. "The Internet connection has now reached every fourth home," spokesman Ain Parmas observed.
The growth in the number of Internet leased-line connections may be one of the reasons why the use of online banking services has surged in Estonia.


Currency Rates in Kroons
February 6, 2005

British pound - GBP - 22.707
Canadian dollar - CAD - 9.716
Swiss franc - CHF - 10.040
Danish krone - DKK - 2.102
Japanese yen - JPY - 0.116
Latvian lat - LVL - 22.479
Lithuanian lit - LTL - 4.532
Norwegian krone - NOK - 1.887
Russian rouble - RUB - 0.431
Swedish krona - SEK - 1.722
US dollar - USD - 12.068
Euro - EUR - 15.646





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