Estonian Review 31 December 2010 - 6 January 2011

NEW YEAR’S GREETING OF THE PRESIDENT OF THE REPUBLIC
FOREIGN NEWS
DOMESTIC NEWS
DEFENCE NEWS
ECONOMIC NEWS
CULTURAL NEWS

NEW YEAR’S GREETING OF THE PRESIDENT OF THE REPUBLIC

Good people of Estonia,
Today, we look back over the past year as it comes to an end and all of us weigh its positives and negatives in our own minds; we will all come to our own conclusions. In the end, I sincerely hope that our shared joys and successes will outweigh any adversities. Therefore on the whole we could describe the year that has been as one to remember, rather than one to forget.
Last year at this time, I said that a shaft of light was shining through skies that are darkened by troubles; we can sense that the downturn in our economy and our prosperity is about to end and our recuperation is about to begin. And this is what happened. We should not feel ashamed. The crisis did not evolve into a catastrophe because when things became difficult – and even before the tough times began – we mostly took the right steps.
However, many of us have yet to find work, even under these improving economic conditions. The year we are about to welcome will not necessarily bring relief to everyone in this regard. But it is our shared responsibility to avoid making unemployment a career and isolation a lifestyle.
We must have both the will and ability to ask for help and to give it. But, above all, we must have the will to emerge from this difficult situation. To learn again and to lead. To stand up and start over.
Estonian entrepreneurs and employees must look for business and employment from spheres that have yet to exist, in which products and services are not yet available. This may sound impossible. However, it is through such pursuits – and such pursuits only – that mankind, Estonia included, enjoys its success today. Such pursuits can only be conducted through schools and education.
Good people of Estonia,
During the credit crunch, the basic truths we have believed and known about ourselves have received validation. The truth that the only credible measure, in good times or bad, is to be in charge of our country and our actions, not mere objects subject to circumstances.
Secondly, tough times allow us to calmly reflect on how we manage our country and measure our progress. Twenty years have already passed since Estonia restored its independence. We have changed our lives considerably – all by ourselves. We are now better educated and more prosperous. We are aware of our strengths and realise our weaknesses. All of this knowledge must now be used to establish new goals.
It always puzzles me when I hear someone moan that Estonia no longer has a common goal for which to strive, because in Estonia we can see stagnation. We should not cling to the dogmas of the past and believe that the solutions we once found will continue to work forever.
And we, my dear fellow countrymen, must consider of all this on 6 March, when the political parties and independent candidates who are running for Parliament will offer us alternatives for the coming years.
What will we do? How will we do it? And – most importantly – what do we want?
The people, as the highest adjudicators, must decide what is permitted in politics and what is not. Democracy is not for sale. Respect cannot be bought. This must be ruled out completely if we want to remain in control of our own country.
Good people of Estonia,
This time around the beginning of the new year is different. In a few seconds, the currency in Estonia will be the euro – the currency that is used by most European countries.
In a moment, Tallinn will receive the title of Cultural Capital of Europe. I do hope that we will use this opportunity to become more cultural and European, within ourselves. That we will realise how culture supports us, not vice versa. That our top orchestras, conductors, writers, museums, and more are invaluable. Without them there would be no Estonia, but rather something completely different.
Dear fellow countrymen,
Our ancestors have left their footprints on this country over several thousands of years. People have left this country and returned; there have been times when the footsteps made by Estonians were rare and reticent.
Today, we can say with full confidence that we are on our way. We are on our way towards the future; Estonia is on its way towards the future! Let us support each other as we walk this way together. Let us have love, understanding, and caring for our fellow travellers on this journey.
A happy tomorrow! A happy New Year!
Long live Estonia!

FOREIGN NEWS

Estonia Made Switch to Euro on 1 January

1 January (BNS) - Estonia switched to the euro at midnight. The earlier currency, the Estonian kroon, will be withdrawn from use after two weeks of parallel circulation.
One euro equals 15.6466 Estonian kroons. The exchange rate of the Estonian kroon, being based on the currency board system, has remained unchanged over the years. Estonia is the 17th member of the euro zone.
The Estonian kroon was taken into use to replace the Soviet rouble on 20 June 1992. From that time until the birth of the euro in 1999 the Estonian kroon was tied to the Deutschmark. The official exchange rate of the Estonian kroon was eight kroons per mark throughout that period.
Estonia started on the course to transition to the euro when it acceded to the European Union in May 2004. Estonia accepted the obligation of switching to the common currency of the European Union, the euro. The same year Estonia became member of the European Exchange Rate Mechanism, ERM2.
In the middle of the previous decade, Estonia made serious preparations for transition to the euro from the beginning of 2007. Estonia managed to meet all the Maastricht criteria for transition to the euro except the price stability criterion. The fact that a too-fast rise in prices made it impossible for Estonia to accede to the euro from the beginning of 2007 became apparent in spring 2006.
It became possible to meet the price stability criterion due to the economic crisis that began at the end of the decade, which put an end to the steep rise in prices. But parallel to the price stability criterion meeting of the criterion of government sector budget balance became more problematic than before. Despite that, Estonia has managed to keep the deficit lower every year than the Maastricht criterion requires it.
At the end of last year the Bank of Estonia declared that Estonia would meet all the criteria serving as the precondition of accession to the euro this spring, when the regular euro readiness assessment took place.
This May the European Commission made the proposal to Estonia to accede to the euro zone. Transition to the euro received its final confirmation on 13 July when finance ministers of the European Union fixed the current exchange rate of 15.6466 kroons to the euro as the rate of currency exchange.
According to recent public opinion polls, nearly half the Estonian population is in favour of switching to the euro.

Main Development Co-operation Partners are Afghanistan and EU Eastern Partnership States

6 January - Today the government approved Estonia’s development plan for development co-operation and humanitarian aid for the years 2011-2015 and the implementation plan of the development plan for the years 2011-2012.
Foreign Minister Urmas Paet noted that in terms of Estonia’s development co-operation partners, a new opportunity has arisen to engage in intensified co-operation with the European Union Eastern Partnership countries. “First and foremost with Ukraine, Georgia, Moldova, Azerbaijan and Armenia, where our help is welcomed and useful. Afghanistan will also continue to be an important development co-operation partner of Estonia,” Paet explained.
According to the foreign minister, the new development plan focuses more on achieving the UN Millennium Development Goals than the previous plan. “For this reason a new area we are focusing on is the development of the health care sector, for which we primarily rely on Estonia’s activities in Afghanistan and in international organisations,” said Paet. “We will try to address protecting the rights of women and improving their situation more than before, as well as the development of the economy, including trade and agriculture,” he added. The strategy also foresees activities related to the development and utilisation of IT solutions across the board.
Foreign Minister Paet stated that development co-operation and humanitarian aid are important foreign policy sectors and it is essential for Estonia’s contribution and level of activity in these areas to increase in the coming years. “We have made it our goal that by 2015 we will be allocating at least 0.15% of our GDP for development aid, moving towards the goal of the proportion that the European Union recommends for contributing to development co-operation, which is 0.33% of GDP,” said Paet.

Estonia Building Playgrounds and Sports Fields for Young Georgian Refugees

3 January - The Foreign Ministry is helping to improve the quality of life of children and youths among Georgian internally displaced persons by continuing to establish playgrounds and sports fields in the villages where they live. The building of playgrounds and sports fields is being funded by 67 141 euros allocated from the Foreign Ministry’s budget for development co-operation and humanitarian aid.
Foreign Minister Urmas Paet stated that the Russia-Georgia conflict that took place in August 2008 created a surge in internally displaced persons, during which thousands of Georgian families lost their homes. “The situation of internally displaced persons is still very complicated. Children and youths who live in refugee villages lack opportunities for healthful recreational and sports activities,” said Foreign Minister Paet. “We want to help to improve the living conditions of young people. Continuing to build playgrounds and sports fields offers an opportunity for young people to enjoyably spend their free time and helps them return to everyday life,” Paet added.
The project to build playgrounds and sports fields is being implemented by the Estonian Embassy in Georgia. Five playgrounds and four athletic fields are being built in villages in the regions of Shida-Kartli and Mtskheta-Mtianeti, which will be enjoyed by more than 800 young people and children.

Foreign Minister Signed Updated Agreement for Protection of Investments with Vietnam

4 January - Foreign Minister Urmas Paet and Vietnamese Ambassador Doan Ngoc Boi signed an updated agreement for the facilitation and protection of investments between Estonia and Vietnam in Tallinn.
Foreign Minister Paet stated that the signing of the agreement gives additional opportunities for economic co-operation between Estonia and Vietnam and for enlivening entrepreneurship. “Estonia entrepreneurs are increasingly setting their sights on far-away markets, and their interest in Vietnam and in finding new partners in Southeast Asia is growing,” said Paet. “Vietnam has also expressed interest in co-operating with Estonia,” the foreign minister added.
When signing the agreement, the foreign minister noted that Estonia would like to find an honorary consul in Vietnam soon in order to make Estonia-Vietnam relations even closer. “Finding an honorary consul would make relations between the countries more active on the individual level, and it would also be helpful for Estonian citizens travelling or hoping to establish business contacts there,” said Paet.

DOMESTIC NEWS

Prime Minister: Euro is Matter of Security for Estonia

1 January (BNS) - For Estonia, joining the euro currency predominantly means security, Prime Minister Andrus Ansip said in his address after withdrawing the first euros at an ATM in central Tallinn immediately after the turn of the year.
"First and foremost, what the euro means to us is security. We are now a full member of the second biggest financial region in the world, with all the advantages and obligations that brings," the prime minister said.
"The euro is our security that Estonia really is part of Europe – no buts, and no more 15.6466s. We are Estonians and Europeans at the same time; Gustav Suits' famous words are at last a reality," he said, referring to the call of the Estonian poet of the first half of the 20th century.
The prime minister said Estonia was bidding farewell to the kroon, which had served it so well for almost 19 years.
"The kroon was a tenacious currency, initially pegged to the German mark and then to the euro, but one that was always lived under the threat, however theoretical, of being devalued. Not that it ever was; and now, of course, it never will be," said the prime minister.
“Yet at the end of the day, money is merely a means to an end, a resource we use to build our nation the way it should be built – the European way – giving us the only Estonia there is in the world,” Ansip said, adding that Estonians had been doing pretty well for themselves.
"In a relatively short space of time we have put together a proper little country in the true northern European mould: Estonia has become one of the most European countries there is. We should be rightly proud of our country, because its achievements are the fruits of the labour of each and every one of us," he said. "And believe me: the very best of times lie ahead."
On behalf of the government, the prime minister thanked everyone in Estonia for joining them on the path the country had taken and for their support for the often difficult decisions one had had to make for the benefit of all.
"I wish everyone a very happy new year – the first of many with the euro!" said Ansip.

1.8 Billion EEK Worth of Kroons Returned to Central Bank

3 January (BNS) - Some 1.8 billion kroons' (EUR 115 mln) worth of Estonian kroon banknotes and coins was returned to the central bank in the last four days.
Of the 9.3 billion kroons that was in circulation before Estonia's transition to the single European currency, 5.1 billion kroons remain in circulation and in the last four days 1.8 billion kroons was returned to the central bank, head of Bank of Estonia's cash and security department Rait Roosve said at Monday's news conference at the Finance Ministry that was dedicated to the currency switch.
Roosve voiced the opinion that Thursday, 6 January, could become the turning point at which the amount of euros in circulation exceeds that of kroons.

DEFENCE NEWS

Government Approves National Defence Strategy

31 December - Yesterday the Government of Estonia approved the National Defence Strategy. It is the first basic strategic document to consider national defence not just as military defence but also on a broader and more comprehensive scale.
According to Minister of Defence Jaak Aaviksoo, present-day security threats are much more complicated in their nature than traditional military conflicts, so all important state authorities must prepare for these threats.
“The change, arising from the replacement of the National Military Strategy with the National Defence Strategy, enables us to start realising the preparation of a comprehensive strategy, encompassing various areas of government that need protection. In addition to the Ministry of Defence, other ministries have also been included in the preparation of this strategy,” said Aaviksoo.
The National Defence Strategy replaces the current National Military Strategy, which focused mainly on military defence. According to the new strategy, national defence is a task for all the important state authorities for which one must already prepare during peacetime.
In addition to military defence, the strategy specifies the support of the civil sector to the military defence, international activity, ensuring internal security, securing sustainable provision of vital services to the society, and psychological defence as the main development areas of national defence.
The strategy is based on the principle that all authorities that are responsible for their respective domains during times of war must also be responsible for these during times of peace. Therefore, in addition to the Ministry of Defence, all other important state authorities will be included in long term planning of national defence.

Nearly 400 Military Personnel Went on Missions Abroad in 2010

31 December (BNS) - Close to 400 members of the Estonian Defence Forces took part in international missions during 2010, and like before Afghanistan was the place where the largest number of Estonians was serving at any time.
About 165 Estonian personnel are serving in Afghanistan during a single rotation. At the time when the contingents change, up to 340 Estonian troops may be temporarily stationed in that country.
Starting from 1 July the Estonian mine-hunter Admiral Cowan with a crew of up to 45 is part of the 15th rotation of the NATO Response Force (NRF).
A 10-strong ship protection team from Estonia is taking part in the European Union's anti-piracy operation Atalanta and the NATO maritime operation Active Endeavour.
One military observer from Estonia is deployed with the UN mission UNTSO (United Nations Truce Supervision Organization) in the Middle East, two staff officers at the NATO training mission in Iraq, staff officers at the mission headquarters in Bosnia and Herzegovina, and one staff officer at the mission headquarters in Kosovo.
In 2009, about 650 Estonian personnel took part in missions abroad. The number was bigger than this year as a result of the temporary deployment of an extra unit in Afghanistan for the elections.

Estonian Units Are in Nordic Battle Group Readiness

3 January (BNS) - Starting from 1 January more than fifty Estonian soldiers are in the readiness of the Nordic Battle Group.
Estonia is taking part in the Nordic Battle Group with its staff protection team, staff officers and non-commissioned officers and logisticians. In all there are 51 soldiers taking part in the Nordic Battle Group from Estonia, the Defence Forces headquarters told BNS.
The Nordic Battle Group will be in readiness in the first half of 2011. The Estonian units are based in Estonia during the readiness period.
The Nordic Battle Group consists of Swedish, Finnish, Norwegian, Irish and Estonian soldiers; the leading country and the biggest contributor to the battle group in Sweden.
The cost of the participation of the Estonian Defence Forces in the activities of the Nordic Battle Group is 16.22 million kroons (EUR1.04 mln). The Nordic Battle Group is one of twelve battle Groups in the European Union.
EU battle groups are rapid reaction tactical units that must be prepared for transfer to areas of crisis up to 6 000 kilometers from Brussels. Two battle groups are kept in readiness at any one time.

ECONOMIC NEWS

Retail Sales Grow For Third Month Running

31 December (BNS) - The retail sale of Estonian retail sale companies grew 5% in stable prices in November 2010 against November 2009; retail sale grew for the third month running, Statistics Estonia reported.
Compared with the same month last year, the nearly two-and-a-half-year fall in the retail sale of retail sale companies turned into a 1% rise in September and October 2010. In November, growth in retail sale continued at a slightly faster pace.
In November the retail sale of retail sale companies totalled 4.6 billion kroons or 293 million euros. Growth in the retail sale in goods was influenced by stores of manufactured goods where retail sale grew 14% against November 2009.
Sales increased in most spheres of activity. The growth in sales was the biggest in other specialised stores where the trade is in computers and their accessories, photo goods, books, sports goods, games and toys. In those stores retail sale grew 30% compared with November 2009.
The statistical office said that also stores selling textiles, garments, footwear and leather goods did well too, with the sale growing by one fourth on year. The retail sale of household
machines and domestic appliances, ironmonger's goods and builders' supplies retail sale grew by 15%.
Retail sale in grocery stores grew one percent compared with last November. The more modest growth in retail sale in those stores was due to the accelerated price rises of food items.
Compared with the previous month retail sale of retail sale companies in stable prices contracted 4%. On the basis of seasonally and working day corrected figures, however, sales increased by more than 1% against the previous month. During the first 11 months of 2010 the retail sale of retail sale companies contracted 4% in stable prices compared with the same period last year.
The sales proceeds of retail sale companies totaled 5.7 billion kroons or 364 million euros, of which the retail sale of goods accounted for 81%. Compared with November 2009, the sales revenues increased 15% in current prices, but contracted 3% compared with the previous month.

Number of Passengers Using Tallinn Airport Climbs 2.9 Percent in 2010

6 January (BNS) - In all 1.38 million passengers passed through Tallinn Airport during 2010, a 2.9% bigger number than in 2009.
The number of passengers on international flights grew 2.7% year on year to 1.35 million, figures released by the state-owned airport company on Thursday show.
Passengers on international flights made up 98.2% of the total number of passengers, on par with 2009, while the share of passengers of regular flights went up 2.6 percentage points to 85%. The number of passengers of non-regular flights declined 2.6 percentage points to 15%.
During the year, 11 960 tons of cargoes passed through the airport, 43% less than in 2009. The number of flights, 33 587, was 3.1% bigger than in 2009.
Passengers in December numbered 103 401, 11.8% more than in the same month a year ago. Goods in December totalled 939 tons, 45% less than in December 2009. The number of flights in December was 2 376, on a par with December a year ago.

CULTURAL NEWS

Foreign Ministry Presents Cultural Stipends to Arvo Pärt, Tõnu Kaljuste, and Tiina Lokk

5 January - Today Foreign Minister Urmas Paet presented the Foreign Ministry cultural stipends, which are given in recognition of people who have helped to introduce Estonia abroad through culture.
“We recognise Arvo Pärt, Tõnu Kaljuste, the Estonian Philharmonic Chamber Choir, the ensemble Vox Clamantis, and the Borusan Philharmonic Orchestra for the world premiere of the work ‘Adam’s Lament’ in Istanbul,” said Urmas Paet. Foreign Minister Paet stated that the world premiere of Arvo Pärt’s “Adam’s Lament” in Istanbul last summer was an extraordinary international event. “The premiere of the work of one of the world’s most renowned contemporary composers Arvo Pärt conducted by Tõnu Kaljuste in the ancient Aya Irini church was truly a bow to Estonian culture,” said Paet. The foreign minister also recognised Mikko Fritze for his activities in organising the premiere within the framework of the Capital of Culture project.
“We would also like to thank Tiina Lokk for organising the European Film Awards ceremony and the 14th Black Nights Film Festival, both with extreme success. We also thank Lokk for initiating and bringing to life the ‘Black Market’ film market geared towards Eastern Europe,” noted Foreign Minister Paet.
“We consider the contributions of the stipend recipients as well as all other Estonian cultural figures to be essential in introducing Estonia abroad. As a result of their artistic and intellectual activities, more and more people abroad are familiar with Estonia and our culture, society and history,” Paet stressed.
Last year the Foreign Ministry cultural stipends were given to Imbi Paju and Tiit Ojasoo.