Estonian Review 30 April - 6 May 2010

PRESIDENT OF FINLAND VISITS ESTONIA
FOREIGN NEWS
DOMESTIC NEWS
DEFENCE NEWS
ECONOMIC NEWS

PRESIDENT OF FINLAND VISITS ESTONIA

Ilves to Halonen: We are Tribal Brothers and Good Neighbours

4 May - “Estonia and Finland are tribal brothers and good neighbours who see many issues from the same perspective. Therefore, we can call President Halonen’s state visit to Estonia today a red-letter day for our close relations—a day that is above the ordinary and which will be given special value,” said President Ilves, who with Mrs. Evelin Ilves is hosting the Finnish Head of State Tarja Halonen and her husband Pentti Arajärvi for a two-day state visit.
Finland has become Estonia’s most important economic and trading partner and is the second biggest foreign investor in Estonia after Sweden, recalled President Ilves, adding: “As we have close economic ties, we sense the impacts of the current recession in quite the same way, and both countries have been forced to adopt desperately needed measures regarding their budgets.”
Finland represents Estonia in issuing Schengen visas in 11 countries; an exchange programme for diplomats has been running between the two countries for the past four years; humanitarian and development co-operation between Estonia and Finland, which relies upon the exchange of experience and joint projects, involves several eastern neighbours of the European Union. We also enjoy a close and diversified partnership in the sphere of defence – from the studies of Estonians in Finnish military schools to a joint procurement of the two countries for the purchase of medium range 3D air surveillance radars. The two countries also co-operate in the sphere of internal and judicial affairs, the avoidance of risks related to increasing marine traffic on the Gulf of Finland, and close relations in the spheres of education, research, innovation, information technology, and culture.
The Estonian and Finnish heads of state also discussed the Baltic Sea Region Strategy as the official macro-regional strategy of the European Union. President Ilves emphasised that during the current implementation stage of the Baltic Sea Strategy the role of the European Union countries located around the Baltic Sea in leading the different sections of the strategy is highly important; however, the governing role of the European Commission must be maintained.
“The future of the internal market, including the digital internal market, is important for Estonia,” said President Ilves. “For us, it is important to enjoy e-freedom apart from the four basic freedoms – and by e-freedom I mean the freedom of e-services, which would give us, as an end result, an opportunity for the e-authentication of digital signatures throughout the European Union.”
The Finnish head of state repeated the support of her country for establishing the European Union IT agency in Estonia.
When speaking about the enlargement of the European Union, presidents Ilves and Halonen stressed the importance of reversing enlargement fatigue, notably experienced by many countries of the community, into faith in enlargement once again.
“The current neighbours of the European Union are doing serious homework before joining the union and they are building up democracy, economic reforms, transparency, and citizens’ communities in their countries; they must be sure that we see and appreciate the efforts they make,” told President Ilves. “This is the European Union’s responsibility to itself, its neighbours, and Europe. We must rise above past conflicts and attach more importance to looking forward and embracing the future.”

Ansip Gives President of Finland Overview of Estonia’s Euro Readiness

4 May - Estonian Prime Minister Andrus Ansip and President of Finland Tarja Halonen met for a working lunch, during which the prime minister gave President Halonen an overview of Estonia’s readiness to join the euro area at the beginning of next year. Prime Minister Ansip assured the Finnish head of state that Estonia has been fulfilling all of the criteria for joining the euro area, and he thanked President Halonen for her support. “The Estonian government is determined to maintain a sustainable budget policy and our goal once again is to have a government budget surplus,” said Prime Minister Ansip at the lunch. “At this point, our government reserves amount to approximately 25 billion EEK, which is 11.7% of Estonia’s gross domestic product,” said Ansip. Estonia’s national debt, which stands at 7.2% of the country’s GDP, is the lowest in the EU. According to the prime minister, Estonia’s economy is already very closely linked to the euro area and Estonia’s accession to the area will further increase the number of economic ties. Estonia mainly exports to Finland and Sweden.
At the meeting, Ansip expressed satisfaction over the developments related to the Estlink 2 project. He said that Estonia had fulfilled all the preconditions necessary for starting the construction of Estlink 2. He expressed his hope that there would be no obstacles in implementing the project. The prime minister and the president of Finland discussed the opening of 35% of Estonia’s electricity market as of 1 April, and Prime Minister Ansip assured President Halonen that by the end of the transition period in 2013 Estonia will have opened its electricity market in full. “By the time Estlink 2 is completed, we will have a functioning electricity market,” Ansip said.
After the lunch President Halonen visited the Riigikogu, where she delivered a speech and met with Speaker of the Riigikogu Ene Ergma. The President of Finland was accompanied on the visit by Finnish Minister of Education Henna Virkkunen, who met with her Estonian counterpart Tõnis Lukas and visited the Tallinna Ühisgümnaasium secondary school.

FOREIGN NEWS

Foreign Minister Paet Opened Estonia Pavilion at Shanghai EXPO

30 April - While opening the Estonia pavilion in the Shanghai World Exposition EXPO today, Foreign Minister Urmas Paet said that participation in the event provides Estonia with an opportunity to introduce itself in the areas of business, culture, tourism, education, research, and many others to China and the entire world.
Foreign Minister Paet said that taking part in the EXPO is a good opportunity for Estonia to show itself to the world and to invite people to travel, study, and create business ties in Estonia. “Being part of the World Exposition gives our businesses and institutions a good opportunity to establish ties in rapidly-developing Asia,” said the foreign minister. During the EXPO, various seminars and theme days will be held in the Estonia pavilion.
The theme of the Shanghai World Exposition is “Better City, Better Life”, with which it hopes to find solutions to the issues and challenges that come with urbanisation. Estonia’s exhibit in the Shanghai World Exposition EXPO is trying to involve people in the campaign to save cities. The pavilion offers people the opportunity to join the discussion on problems related to global urbanisation.
The World Exposition, which will last for half a year, includes close to 200 nations and 45 international organisations. The Estonia pavilion (about 1 000 m²) is located near the Finland, Sweden, Denmark and Norway pavilions. It is estimated that the EXPO will be visited by 70-80 million people.

Paet and Ronis Place Importance on Completion of Estonia-Latvia Future Report

3 May - Today Foreign Minister Urmas Paet discussed Estonia-Latvia relations and international co-operation with the new foreign minister of Latvia Aivis Ronis, who was in Tallinn on his first foreign visit.
Foreign Minister Urmas Paet and his Latvian colleague Aivis Ronis discussed intensifying bilateral relations prior to the completion of the Estonia-Latvia future report. “We would like to make Estonia-Latvia co-operation even more successful and productive than it has been. The report on our future, which will soon be completed, evaluates opportunities to improve our co-operation and gives practical input for reaching this goal,” stated Paet.
Foreign Minister Urmas Paet also mentioned Estonia and Latvia’s good co-operation in visa representation matters. “Estonia plans to conclude a visa representation agreement with Latvia, on the basis of which the Estonian Embassy in Sofia, Bulgaria will begin to issues visas for travelling to Latvia,” Paet noted. “The Estonian and Latvian embassies also co-operate to help citizens with consular matters in Cairo, Egypt, where Estonia opened its embassy on 1 March,” said Paet.
Paet and Ronis also talked about Estonia-Latvia co-operation opportunities within the framework of Eastern Partnership. Foreign Minister Paet stated that Estonia would eventually like to establish an Eastern Partnership training centre in Tallinn that would involve the participation of the European Union member states as well as the European Commission. “The European Union must take a more active position when it comes to the Eastern partners. We would be happy to involve Latvian specialists in the Eastern Partnership training centre,” said Foreign Minister Paet. “We will focus on programmes with visible results, like for example border management, the fight against corruption, or support for small businesses, that would give a purposeful boost to the reform process in partner states,” he added.
As the representative of the Baltic nations in the group of experts working on NATO’s new Strategic Concept, Aivis Ronis also discussed Estonia and Latvia’s goals in NATO. Both Estonia and Latvia see NATO’s principle values such as Article 5 and reliable collective deterrence as very important. According to Foreign Minister Paet, Estonia will continue to contribute to construction and the support of security in Afghanistan, and Afghanistan is a vital development co-operation country for Estonia. “Estonia’s development co-operation in Afghanistan is based on the preferences of the Afghan government and focuses first and foremost on health care, improving the situation of women and children, and advancing good administrative practice,” Paet stated.
While talking about the European Union and matters related to its foreign service, Foreign Minister Paet expressed hope that the External Action Service could begin working already in the autumn of this year. “The European External Action Service must co-operate closely with the foreign services of member states,” said Foreign Minister Paet. “It is essential to ensure the transparency of the recruitment process as well as a geographical balance among the personnel,” Paet added. Foreign Minister Urmas Paet stated that it is also essential to add consular function to the European Union foreign representations in case of emergency situations.
When discussing Estonia and Latvia’s co-operation in international organisations, the ministers agreed that it can be intensified by supporting each other’s candidacies, for example. Estonia would like to be a candidate for the UN Human Rights Council in 2012, and Latvia would like to be one in 2014.

Estonian Head of State Met With New Latvian Foreign Minister

3 May - “The unity of the Baltic states, which 20 years ago we used to describe the shared struggle of the three countries to restore their independence, today stands for the co-operation between Estonia, Latvia, and Lithuania in shaping the future of the European Union and NATO,” said President Toomas Hendrik Ilves at his meeting with Aivis Ronis, who recently became the Latvian Minister of Foreign Affairs. “The Baltic states are good partners for each other and as allies in these organisations.”
President Ilves and Minister Ronis expressed their pleasure with the fact that the documents establishing the foreign service have strongly defined the need for observing geographical balance, and they described as positive the work to date in preparing NATO’s strategic concept.
When speaking about relations with Russia, a neighbouring country of the European Union, President Ilves spoke of the importance of a new treaty between the European Union and Russia, which would involve all of the important issues and be legally binding. “For Estonia, it is important to open lines of communication between the European Union and Russia in the real meaning of the word – the border should operate smoothly,” the head of state emphasised. “This is our shared problem, as is co-operation between Estonia, Russia and Latvia, and not just Estonia and Russia, to make the legal crossing of borders as simple and smooth as possible, while eliminating any option for illegal crossing.”

Kokk: Estonia Supports Accession of Western Balkans to European Union

4 May - Foreign Ministry Secretary General Marten Kokk met with Chief Negotiator for Accession Negotiations with the European Union for Croatia Vladimir Drobnjak, who was in Estonia for a visit. The two discussed Croatia’s progress and the final efforts necessary in accession negotiations with the European Union. They also discussed bilateral relations.
While talking about Croatia’s European Union-related development, the secretary general emphasised that Estonia acknowledges Croatia for the progress it has made that has allowed the nation to enter the decisive phase of the negotiation process. “Croatia becoming a member of the European Union would be a positive sign to the entire Western Balkan region,” said Kokk, adding that Estonia also supports the accession of other Western Balkan states into the European Union.
The secretary general added that Estonia firmly supports the course of Croatia’s reforms. “We hope that in its negotiations with the EU, Croatia will soon be able to open the final chapters and complete the negotiations on the technical level this year,” noted Secretary General Kokk.
During his visit, the chief negotiator will meet with the Foreign Ministry’s Undersecretary for European Union affairs Kaja Tael, chairman of the Riigikogu foreign affairs commission Marko Mihkelson, Finance Ministry Deputy Secretary-General for State Fiscal Policy Ivar Sikk, and director of the Finance Ministry Structural and Foreign Assistance Department Ando Siitam.

Foreign Minister Paet Speaks At NPT Review Conference in New York

5 May - At the Review Conference on the Nuclear Non-Proliferation Treaty in New York, Foreign Minister Urmas Paet said that the restriction of nuclear arms must take place alongside the formulation of security measures, so that transparency and security could be ensured in the civilian use of nuclear power as well.
Speaking at UN Headquarters, Paet noted that the Review Conference on Nuclear Non-Proliferation was taking place against a backdrop of positive developments in arms control in the world, but despite that we cannot allow ourselves to forget that quite a few nations have yet to join the Nuclear Non-Proliferation Treaty (NPT). “The renewed strategic arms reduction agreement between the United States and Russia is an important milestone for arms control that takes us a step closer to a safer world,” stated Paet. “However, we must be realists. This is why Estonia fully supports future nuclear security and the advancement of the monitoring systems that support it. Effective monitoring in nuclear testing and civilian use of nuclear energy is necessary,” said the Estonian foreign minister.
Paet emphasised that looking into the future, there is great potential for the civilian use of nuclear energy. “The rapid growth of the use of nuclear fuel for civilian purposes deserves support for its environmental protection aspects,” said Paet. “Energy security and battling climate change continue to be important goals. Taking into account the explosively growing interest towards peaceful uses of nuclear energy, Estonia supports the establishment of a Low Enriched Uranium bank under the control of the IAEA,” he asserted.
At the Review Conference on the Nuclear Non-Proliferation Treaty that began this week, the primary topics that will be addressed are practical measures for nuclear disarmament; nuclear non-proliferation, including the promoting and strengthening of safeguards; measures to advance the peaceful use of nuclear energy; regional issues, such as the creation of a nuclear arms-free zone; measures to address withdrawal from the Treaty; the universality of the Treaty; and promoting disarmament education in the world.

Estonia Supports Tough Monitoring of Nuclear Developments

6 May - Meeting with executive secretary of the Preparatory Commission for the Comprehensive Nuclear-Test-Ban Treaty Organization (CTBTO) Tibor Toth in New York, Foreign Minister Urmas Paet said that Estonia supports the work of the CTBTO in building up a verification regime for nuclear testing.
Paet stated that an effective monitoring system helps to achieve security regarding the appropriate use of nuclear energy and nuclear testing. “Uniting the restriction of nuclear arms and the ban on nuclear testing is necessary to increase the nuclear safety of the world, but it must happen alongside global security measures and monitoring systems being made more effective,” said Paet. “Building up the system will hopefully give additional security to nations that have not yet joined the Nuclear Non-Proliferation Treaty (NPT). It is essential that the international community would be provided with information on the peaceful uses of nuclear energy,” noted the Estonian foreign minister.
During his meeting with Toth, Paet confirmed that Estonia as a European Union member state actively supports the role of the Comprehensive Nuclear-Test-Ban Treaty Organisation (CTBTO) in restricting nuclear testing and in its monitoring work. Estonia also supports the work done to persuade countries to join the Comprehensive Nuclear-Test-Ban Treaty.
The Comprehensive Nuclear-Test-Ban Treaty (CTBT) was opened for signing in 1996. Estonia signed the agreement and it was ratified by the Riigikogu in 1999. The treaty will come into effect six months after it has been ratified by all 44 nations that possessed nuclear capability at the time of its creation.

DOMESTIC NEWS

Nearly 30 000 People Turn Out for Volunteer Work Saturday

3 May (BNS) - There were 28 620 volunteers taking part in a country-wide campaign to tidy up neighbourhoods in Estonia on May Day, and they worked at a total of 1 116 different sites.
Dozens of parks and village greens, village swings and dance floors, churchyards, old fortress sites and many other historical sites and buildings were fixed up. The most distant places where voluntary work took place in the framework of the campaign were in Ivanogord in Russia and in Stockholm in Sweden.
There were 7 315 people joining the campaign in Harju County, 2 496 in Pärnu County, 2 335 in Tartu, 2 330 in West-Viru, 1 953 in East-Viru, 1 856 in Võru, 1 725 in Saare, 1 683 in Jarva, 1 557 in Lääne, 1 223 in Viljandi, 1 073 in Rapla, 922 in Valga, 893 in Jõgeva, 829 in Põlva and 350 in Hiiu County. The turnout in Ivangorod was fifty, and several dozen participants came to the Estonian seniors' home in Stockholm.

Tallinn to Join Intelligent Community Association

6 May (BNS) - The Tallinn City Council Thursday afternoon endorsed accession of the capital to the world Intelligent Community Association. The Intelligent Community Association, ICA, is a non-profit organisation that promotes the achievements of successful communities throughout the world, furthers research programmes, and attempts to ensure the best opportunities for information technology, innovative and dynamic development.
Speaking in the City Council, Municipal Secretary Toomas Sepp said that there is a danger of lack of co-ordination in the capital in working out new IT solutions and their applications. Sepp said that state co-ordination of the IT sphere, which would not allow for incomplete solutions or those that do not interlock with other systems to be carried out.
In 2007 the Intelligent Communities Forum picked Tallinn as belonging to the top seven most intelligent communities in the world from among 300 candidates. By now Tallinn has deserved the same recognition four years running, a spokesman for the City Council said.
The decision about this year's most intelligent community will be made on 21 May in New York. The plans are to sign the foundation treaty of the Intelligent Community Association there on 19 May.

DEFENCE NEWS

Defence Minister Hopes Participation in Battles in Afghanistan Will End in 3 to 5 Years

3 May (BNS) - Estonian Defence Minister Jaak Aaviksoo expressed the opinion that Estonian soldiers would no longer have to take part in immediate hostilities in Afghanistan in 3 to 5 years. Commenting on the allies' plan to start handing over responsibility for security to the local security forces in the first regions in Afghanistan, Aaviksoo said in an interview to BNS that Estonian soldiers were serving in the most complicated area in Afghanistan.
Handing over responsibility will start in the areas where it is possible according to the security situation and where Afghanistan's own army and police forces are capable of ensuring security. Helmand Province, where Estonian soldiers are serving, and the neighbouring province of Kandahar are the main footholds of the rebellion that started after Taliban's power was toppled.
Aaviksoo said that discussions about dividing the South Helmand area into two independent areas were now going on and this could bring changes in the location of units. "We cannot be very sure that in three to five years Estonians are in geographically the same place. It depends on the military situation and respective decisions," the defence minister said. "We would like to stop the participation of Estonian units and other allied forces in immediate hostilities as soon as possible," Aaviksoo said.
"I believe that participation in immediate armed conflicts could stop in three to five years," Aaviksoo said, adding that the dates should certainly not be very clearly defined.
But Aaviksoo added that if the units' "immediate patrol functions outside the base stopped", a certain presence of international security forces would last more than three to five years, and so it was necessary to be prepared for longer participation.
He quoted the example of Bosnia and Herzegovina, which still had peacekeeping forces in the country after 15 years.
NATO Secretary-General Anders Fogh Rasmussen said during the foreign ministers' meeting of the alliance at the end of April that one of the allies' aims was to start handing over ensuring security to Afghanistan's security forces. Rasmussen reiterated that handing over insuring security would start this year but underlined that it would not go in accordance with the calendar, but handing over responsibility for security would take place gradually, in line with the capability of Afghanistan's security forces.

Kalev Infantry Battalion Preparing for Main Spring Storm Exercise

5 May (BNS) - The Estonian Kalev Infantry Battalion Wednesday began a six-day co-operation exercise to prepare for the main Spring Storm 2010 exercise.
The Defence Forces headquarters said the co-operation exercise consists of playing through the three main types of combat. The two-day delay operation began on Wednesday, and defence and assault will be played through in the next few days. The final exercise will be carried out in the territory of the Abja, Halliste and Saarde rural municipalities. "There are plans to organise a complex exercise for units, which will consist of training delay, defence and assault activities," said Lt. Col. Margus Koplimagi, commander of the Kalev Infantry Batallion.
"In its course, the companies will be able to exercise for the first time in the battalion framework. In this the main emphasis is co-operation between units and co-ordination in carrying out battle duties. The aim of the exercise is to prepare the whole battalion for the Spring Storm 2010 assessment exercise.”
In the period from 3-23 May, the Defence Forces will carry out Spring Storm 2010, in the course of which units and headquarters of different levels will exercise joint action.
In all there will be nearly 3 500 men, members of the Defence Forces, of the Defence League and reservists, about half of them constituting conscripts whose training cycle will be completed this spring. During the exercise they will train the main types of combat, defence, delay and assault.

ECONOMIC NEWS

Almost 24 Percent of Planned 2010 Revenue Received During Q1

30 April (BNS) - Intake of budgetary revenue in Estonia during the first three months of 2010 totalled 20.1 billion kroons (EUR 1.28 b), or 23.8% of the amount projected for the whole year, the Finance Ministry said.
Expenditures financed during the quarter came to 20.9 billion kroons, 22.9% of the planned 12-month total. Revenue intake in March was 4.9 billion kroons, 5.8% of the 12-month target.
"The figures for March are greatly influenced by refunds of income tax and minor advance payments by the European Commission," the ministry explained. The general government deficit after the first two months of the year was 2.1 billion kroons or 0.98% of estimated GDP, the ministry estimates.

Norway’s Orkla Buys Kalev Chocolate Factory

4 May (BNS) - A subsidiary of the Norwegian multi-industry group Orkla has signed an agreement for the purchase of the Estonian confectionery maker Kalev Chocolate Factory and its cookie and flour mix segments.
Under the agreement, Orkla acquires 100% of the shares of Kalev Chocolate Factory, including its plant in Jüri to the south of Tallinn. In addition to Kalev Chocolate Factory, the business segments for the production of cookies and flour mixes in Estonia are part of the deal.
The buyer in the transaction is Orkla's Finnish holding Felix Abba and the seller the Estonian holding company Luterma. The transaction does not affect companies belonging to Luterma that are not linked to sweets production, and the parties have agreed not to disclose the price. The transaction is subject to regulatory approval.
Orkla operates in the branded consumer goods, aluminium solutions, materials, renewable energy and financial investment sectors. The group has a turnover of 56 billion Norwegian kroner and 30 000 employees in more than 40 countries.

March Industrial Output Jumps 11.6 Percent on Year

30 April (BNS) - The output of Estonia's industrial enterprises in March 2010 was by 11.6% greater than in March a year ago, Statistics Estonia said. Output in manufacturing increased 11.4% compared to March 2009.
While in the 12 months of 2009 output decreased in all branches of manufacturing compared with 2008, in January 2010 some branches showed signs of recovery. In February and March considerable growth could be observed in more than half of all branches.
Export sales in manufacturing increased 23%, whereas domestic sales fell 6% compared to March 2009. The rapid increase in production was partly the result of the low reference base from 2009, as at the beginning of 2009 industrial output hit bottom in Estonia.
Of key branches of industry, output increased a lot in March in the manufacture of electronic products (89%) and of wood and wood products (21%). It increased considerably also in some smaller branches, such as the manufacture of motor vehicles, metals, refined petroleum, chemical and plastic products and building materials, mainly due to the increase of exports. Production of apparel and leather decreased by more than a fifth. The rate of decline was less than 10% in the manufacture of paper, metal products, machinery and equipment, and in repair and installation of machinery and equipment. The main reason behind the decline was insufficient domestic demand.
Compared to February, seasonally adjusted industrial output increased 3.8%, with output in manufacturing moving up 3.2%.

Number of Passengers Carried by Tallink Rises by 14.7 Percent in April

4 May (BNS) - As many as 712 939 people, 14.7% more than a year ago, travelled on ships of the listed Estonian shipping group Tallink during April. Tallink had 748 836 passengers in March, 511 595 in February and 491 383 in January 2010.
The number of passenger cars carried in April climbed 12.5% to 73 345, and the number of cargo vehicles was up 11% at 21 626, Tallink said.
The number of passengers grew in April on all routes operated by the company. On the Latvian-Swedish route Tallink carried 58 567 passengers, 49% more than last year. On the Estonian-Swedish route there were 71 977 passengers, marking an increase of 25%. In traffic between Sweden and Finland the number of passengers last month was 257 772, 8% more than in April a year ago. The passenger number in Estonian-Finnish traffic was 324 440, an annual increase of 17%.
On the Finnish-German route, the ships Superfast VII and Superfast VIII returning from regular maintenance started traffic respectively on 26 and 30 April, carrying 183 passengers until the end of the month.
In April 2010 the Icelandic volcano Eyjafjallajokull restricted air travel all over Europe, which had a positive effect on passenger numbers on all of Tallink's routes, the shipper said in the release to the stock exchange.