Estonian Review: March 22-29, 2004

FOREIGN NEWS
DOMESTIC NEWS
DEFENCE NEWS
ECONOMIC NEWS
CULTURE NEWS



FOREIGN NEWS

Estonia is a member of NATO

Mar 29
- On 29 March 2004, Estonian Prime Minister Juhan Parts deposited Estonia’s NATO instruments of accession in the US Treasury Department making Estonia an official member of NATO.
After presenting the accession documents, Prime Minister Parts said, “Estonia will now feel more secure. More secure than ever before in the course of our history.” Parts affirmed that Estonia would contribute its share to help NATO remain the best security organisation that has ever existed.
Following the ceremony at the US Treasury, Prime Minister Parts along with the Prime Ministers of the acceding states participated in the State Department Luncheon held by US Secretary of State Colin Powell to commemorate the event and held in honour of the Prime Ministers of the acceding nations. At the luncheon, Parts said that a strong transatlantic link is important for the future of NATO and that NATO is the only organisation that can effectively deal with new and old security risks.
Prime Minister Parts also met with US President George Bush in the White House. The meeting was followed by an official accession ceremony. Members of Congress and the representatives of the expatriate societies of the acceding nations also attended the White House ceremony.


Estonian PM criticises restrictions to labour for new EU members

Mar 26
- Speaking at the European Council, Estonian Prime Minister Juhan Parts criticised steps by older members of the European Union (EU) in setting restrictions to the free movement of labour.
Parts welcomed a recommendation of incorporating proposals, made in a report by former Dutch Prime Minister Win Kok's working group, into the European labour strategy.
"This report gives clear and urgent recommendations to the EU and member countries on how to eliminate obstacles to the free movement of labour and increasing labour mobility," he said.
The prime minister said that in this context it was contradictory that most governments had decided to restrict the free movement of labour from the new member countries.
"Restricting the movement of labour we will make the labour market more rigid, weaken Europe's competitiveness and prevent economic growth," said Parts.
The prime minister said another contradiction was connected with analysis of the employment report. "It underlines the need for flexible labour relations in increasing employment," Parts said. "The countries whose labour relations are now regulated in the light of Wim Kok's recommendations should not make their labour law more rigid to later have to liberalise them."
Parts said this would be contradictory and ungrounded, as the aim should be simplification of the legal environment and reduction of regulative obstacles both on the member country and the EU levels.
The European Council was dedicated to economic questions and the fulfilment of the goals of the Lisbon Process. The international relations component touched on the Middle East Peace Process, the situation in Iraq, Afghanistan and Kosovo, and on the EU’s strategic relationship with the Mediterranean and Middle East regions.
Foreign Minister Kristiina Ojuland said that Estonia sees the recent violence in the Middle East as a threat to peace plan composed by the quartet; the UN, the EU, the USA and Russia. Minister Ojuland emphasised that Estonia believes the strengthening of the UN’s role in Iraq in restoring sovereignty. “The UN’s experiences in organising elections and in institution building are very valuable,” said Ojuland.
The Prime Ministers at the European Council work session welcomed a declaration in the fight against terrorism and named Holland’s Gijs de Vries as the EU’s Counter-terrorism co-ordinator. His job will be co-ordinating the co-operation of member states in the fight against terrorism. The Prime Ministers emphasised the importance of increasing the exchange of information.
Prime Minister Juhan Parts said that the EU government leaders agreed to continue the Constitutional Treaty talks at a working dinner. “The common desire of the Prime Ministers is that an agreement will take place in the first half of this year,” said Parts. Plans are to accept a new Constitutional Treaty at the end of the Irish Presidency at the June European Council.


Italian Deputy Prime Minister welcomes Estonia "Back Home"

Mar 23
- Prime Minister Juhan Parts met with Italian Deputy Prime Minister Gianfranco Fini. The meeting focused on the relations between the European Union and Russia, the future of the Constitutional Treaty, and the Lisbon strategy.
At the beginning of the meeting, the Italian deputy prime minister congratulated Parts for rejoining Europe. "You are coming back home," said Fini. "Europe is not expanding to Tallinn, but rather Estonia is returning to Europe," he added.
Speaking about the EU and Russian relations, Fini stressed that the Partnership and Co-operation Agreement should automatically extend to the new Member States. According to Parts, the European Union has to proceed from common interests in relations with Russia. Both Fini and Parts found that the EU should help Russia cope with its past.
Regarding the future of the Constitutional Treaty, Fini mentioned that the earlier the Treaty is passed, the better for everyone. "The longer it takes, the looser the spirit of the convention will be," he said. The parties still believed that there is reason for optimism concerning the continuation of the Intergovernmental Conference, as the latest developments have been positive. Fini and Parts agreed that the adoption of the Constitutional Treaty would remove speculation about the existence of a two-speed Europe and a core Europe.
Italian Deputy Prime Minister Gianfranco Fini also met with Estonian Foreign Minister Kristiina Ojuland. Both declared that the Constitutional Treaty of the European Union must be completed as quickly as possible.
"The treaty must be ready as soon as possible, because discussions on the financial perspective will gain momentum soon and they may overshadow the Constitutional Treaty talks," said Ojuland.
Ojuland and Fini contended that recent signs offer hope that talks on the Constitutional Treaty will continue and the differences can be overcome. "Estonia has shown serious readiness for co-operation in discussions about the constitutional treaty," added Fini.
The two sides agreed that bilateral relations were very good. Italian President Carlo Azeglio Ciampi will soon visit Estonia. Ojuland and Fini also spoke about the EU's new neighbours policy and the fight against terrorism.


NATO planes arrive in the Baltics

Mar 29
- Four fighter planes from the Belgian Air Force arrived at the Zokniai airfield near the city of Siauliai in northern Lithuania, which will soon start patrolling the Estonian, Latvian and Lithuanian skies. The Norwegian technicians who will be servicing the Belgian jets arrived at the base on Friday. At least four NATO airplanes will be patrolling daily.
In a statement from the Baltic State Defence Ministers, they hailed the alliance's collective airspace security decision. The aircraft used for this purpose will help guarantee the security of the Baltic airspace, they declared.


Six government leaders from Nordic, Baltic countries optimistic about EU constitution

Mar 24
- The six heads of government from the Nordic and Baltic countries meeting in Vilnius were optimistic about the prospect that the European Union's Constitutional Treaty can be finalized soon.
"There was no excessive optimism as a lot depends on what the presiding country Ireland will put forward at the Council that will gather in Brussels on Thursday," said an Estonian government spokesperson.
The Prime Ministers supported the proposal regarding voting arrangements, that is being discussed, which requires the backing of at least 55 percent of EU countries and the same percentage of the population for important decisions differing from the present draft of the constitution, which speaks of half the member states and 60 percent of residents.
The Estonian director for EU affairs, Henrik Hololei, said that the new proposal would increase the weight of small and medium-size EU members in decision-making.
The prime ministers of Estonia, Latvia, Lithuania, Denmark, Finland and Sweden were in favour of a proposal to create the post of EU anti-terrorist co-ordinator.
The prime ministers were satisfied with the actions of the current EU president Ireland and unanimous about the need to speed up the implementation of the Lisbon strategy that seeks to boost the competitiveness of the EU.


The Estonian Ministry of Foreign Affairs mourns Estonian Honorary Consul Jorma Antero Törönen

Mar 22
- Estonian Ministry of Foreign Affairs mourns Estonian Honorary Consul in Tampere Jorma Antero Törönen and expresses deep sympathy to his family. Jorma Törönen died tragically on Monday morning in Baghdad.
According to Foreign Minister Kristiina Ojuland, Estonia has lost a good and forthcoming friend, whose contribution, as the Honorary Consul of Estonia, to the development of Estonian and Finnish relations was invaluable. "At the same time our co-operation with Jorma Törönen was not limited to his duties as an honorary consul. As a distinguished international businessman he shared his own experiences and know-how," said Ojuland. "We mourn the loss of Jorma Törönen and express our deepest condolences to his family," added the Foreign Minister.


Estonian president pays respects to terror victims

Mar 24
- Estonian President Arnold Rüütel flew to Spain to take part in the memorial service for the victims of the March 11 terrorist attack in the Spanish capital.
The service was held at the royal Almudena cathedral in Madrid. Apart from King Juan Carlos I of Spain, numerous other heads of state and government leaders attended the memorial service, among them Finnish President Tarja Halonen.


Estonia opens Honorary Consulate in Lyon

Mar 23
– Estonian Foreign Minister Kristiina Ojuland opened a new Honorary Consulate in France. The Lyon Honorary Consulate is responsible for the Rhone-Alps and Auvergne. The new Honorary Consul is Serge Arnould.
Estonian Ambassador to France Andres Talvik, the President of Union of Honorary Consuls in France Roland Roux, the President of the French Association of Small and Medium Sized Enterprises François Turcat, local government representatives and an Estonian Business Delegation participated in the opening of the Honorary Consulate.
The Honorary Consulate is located at Villa Bini, 55 rue Sergent Michel Berthet, 69009 Lyon and the Honorary Consul can be reached at (33) 4 78 57 42 20.


Russia expels two Estonian diplomats in tit-for-tat

Mar 22
- Russia has ordered two Estonian diplomats to leave the country in 48 hours in what appears to be a tit-for-tat response to Estonia's decision to kick out two Russian diplomats for activities incompatible with their diplomatic status.



DOMESTIC NEWS

Prime Minister remembers the victims of deportations

Mar 25
- Prime Minister Juhan Parts placed a wreath by the statue of the mourning Linda in Tallinn to commemorate all the victims of the regime of violence that Estonia has had to endure over the long years of occupation.
The Prime Minister and the Government of the Republic stood for all those who had suffered from totalitarian violence, especially those victims who were taken from their homes 55 years ago today.
"This night has been peaceful in Estonia, but it is completely impossible for my contemporaries to imagine themselves in the situation that existed 55 years ago tonight. In exactly the same light and weather conditions, the knocks of strangers woke people in the middle of sleep. Then our honest compatriots were pushed into animal carriages and taken off to Siberia. Many of them never returned," said Parts.
According to the Prime Minister, we know well that not every part of the world is secure today, but it is up to all of us to increase this security. "Estonia, a country that has such a personal experience as a victim of deportation, will always stand against crimes against humanity. It is the duty of our people as well as our state as a whole. Therefore, we will continue to assume international commitments and participate in international cooperation aimed at increasing security in the future," said Parts.


Estonian parliament re-elects Ergma as Chairman

Mar 25
- The Estonian parliament re-elected Res Publica MP Ene Ergma as Chairman of the Riigikogu for a second one-year term.
Ergma received 54 votes and opposition Pro Patria Union leader Tunne Kelam, 25 votes in the secret ballot.
Then a newcomer in the parliament, Ergma became the first female Chairman of the 101-seat Riigikogu in a similar vote last March with 66 votes for and three against. She had no candidate running against her then.


Estonia joins international ban on landmines

Mar 24
- The Estonian parliament voted in favour of Estonia joining the international convention, which bans the use of landmines.
Only six deputies from the opposition voted in favour of a proposal to suspend the second reading of the bill, whereas over 60 members of the 101-seat chamber were in favour of the ban.



DEFENCE NEWS

Chaplain says morale of Estonian soldiers in Iraq high

Mar 23
- The army chaplain who went to Iraq to offer support to soldiers after one member of the Estonian contingent was killed said that even though the men were in deep sorrow, their morale was high and they were coping with their tasks.
"The most important thing is that you never know what kind of effect an event like this will have on the unit. To our surprise, it had a consolidating effect, it had a positive effect on motivation," Alasoo said.



ECONOMIC NEWS

Producer price index up 0.3 pct in Estonia in February

Mar 22
- The producer price index of industrial output increased in February by 0.3 per cent compared to January and by 0.6 per cent compared to February 2003.
The producer price index was affected by the rise in prices in wood processing, food industry and furniture, the Statistical Office reported.
The export price index rose 0.4 per cent compared to January. The change in the import price index was 0.2 percent compared to January and -1.2 percent compared to February 2003.


Estonia's 2003 current account deficit stands at 13.7 pct of GDP

Mar 22
- According to Bank of Estonia statistics the country's current account deficit in 2003 was 15.9 billion kroons (EUR 1,016 million), 13.7 per cent of the expected gross domestic product (GDP) for 2003.
In Q4, the current account deficit was the highest of the year, totalling 4,914 million kroons and making up 16.7 per cent of the gross domestic product of the period.
One of the reasons for the rise in the deficit last year was the foreign trade balance, despite growth in exports the import of goods was considerably higher than their export, the central bank said.
The negative balance of foreign trade increased by 3.5 billion kroons compared to 2002, totalling 21.7 billion kroons. As a ratio of the gross domestic product the figure grew to nearly 19 per cent.
The export of goods increased by 9 per cent, including normal export by 12 per cent. Export grew in nearly all commodity groups, with the exception of groceries and garments.
The Bank of Estonia forecast the 2003 current account deficit at more than 14 per cent of GDP at the end of last year and the Finance Ministry at more than 15.3 percent at the beginning of this year. This year the two institutions expect a current account deficit of respectively 11 percent and 13 percent of GDP.


Inflow of direct investments into Estonia up by 150 pct last year

Mar 22
- The Bank of Estonia said the sum of total foreign direct investments into Estonia last year amounted to 11.829 billion kroons, nearly 150 per cent more than in 2002.
More than half of the direct investments made into Estonia were due to the increase in retained earnings. Also investments into stock capital increased considerably.
In Q1 last year, 4.45 billion kroons came into Estonia in form of direct investments, in Q2 2.2 billion, in Q3 3.5 billion and in Q4 1.7 billion kroons.
Nearly eighty per cent of the foreign direct investments came from two countries -- Finland 47 per cent and Sweden 31 per cent.
The most popular sphere of investments was wholesale and retail trade, which attracted nearly 40 per cent of the direct investments. Next came the processing industry, 17 per cent, real estate, leasing and business services 15 per cent and financial brokerage 14 per cent. Estonian direct investments into foreign countries totalled 2,15 billion kroons.


Estonia's industrial output up 8 pct y-o-y in February

Mar 23
- Industrial production in Estonia grew in February by eight per cent year-on-year. The growth in manufacturing was most influenced by an increase in the production of food, wood and chemical products, the Statistical Office reports.
Compared to February 2002, the output of electricity increased by one per cent and thermal power, by two per cent.


Currency Rates in Kroons
March 28, 2004

British pound - GBP - 23.380
Canadian dollar - CAD - 9.733
Swiss franc - CHF - 10.060
Danish krone - DKK - 2.101
Japanese yen - JPY - 0.122
Latvian lat - LVL - 23.945
Lithuanian lit - LTL - 4.532
Norwegian krone - NOK - 1.855
Russian rouble - RUB - 0.453
Swedish krona - SEK - 1.690
US dollar - USD - 12.907
Euro - EUR - 15.646


CULTURE NEWS

Estonia releases two new feature films in March

Mar 22
- Two new Estonian feature films have been released in March: "We Will Not Sleep Tonight ("Täna öösel me ei maga"), directed by Ilmar Taska and "Revolution of Pigs" ("Sigade revolutsioon") by Jaak Kilmi and Rene Reinumägi.
"Täna öösel me ei maga" is a psychological thriller. "Revolution of Pigs" is a youth comedy, which expresses youngster's behaviour and way of thinking in a student summer camp on the summer of 1986 at the time of totalitarian system.
The reputation of cinematography mostly depends on feature films. The Estonian public is small in number, thus it is difficult to find production funds. That is why a film screenings in Estonia are major cultural event. Last year for example, only two feature films, "Somnambulance" and "Made in Estonia", premiered.




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