Estonian Review 4 - 10 June 2010

ESTONIA CONTINUES TO SUPPORT DEVELOPMENT OF AFGHAN STATE
FOREIGN NEWS
DOMESTIC NEWS
DEFENCE NEWS
ECONOMIC NEWS
CULTURAL NEWS

ESTONIA CONTINUES TO SUPPORT DEVELOPMENT OF AFGHAN STATE

School of Diplomacy Training Afghan Diplomats

6 June - This coming week a training session organised in co-operation by the Foreign Ministry and the Estonian School of Diplomacy will begin in Tallinn. During the training, ten diplomats from Afghanistan will be introduced to Estonia’s experiences in building up a foreign service and be given an overview of the various aspects of international communication.
Foreign Minister Urmas Paet stated that the training is based on Estonia’s own experiences with building up a nation and its institutions. “The main focus of Estonia’s civilian co-operation with Afghanistan is on developing health care, education, and good administrative practice,” said Paet. “The goal of Estonia and of the international community is for the Afghans to begin accepting more and more responsibility for the development of their state. Building up the state and the foreign service is one essential component of helping to increase the Afghan government’s capability to communicate with the international community,” he added.
In addition to topics related to building up a state and foreign service, the programme of the training session taking place from 10-18 June at the Estonian School of Diplomacy also includes courses on Estonia’s experiences in transatlantic co-operation and communication with the EU and NATO. Topics like diplomacy and international negotiations, international law, diplomatic protocol, and EU and regional co-operation will also be addressed. There will be lectures as well as seminars and meetings with representatives from various Estonian institutions.

Estonia Helping to Create e-Voting System for Afghan Parliament

9 June - The Foreign Ministry is supporting the project of the e-Governance Academy through which an electronic information system is being created for the parliament of Afghanistan. Foreign Minister Urmas Paet stated that using a modern system will make the work of the Afghan parliament more trustworthy, transparent and effective. “These characteristics are requirements for developing the national order and gaining the trust of the people,” asserted Foreign Minister Paet. “Estonia’s experience shows that the skilled use of information technology improves the efficiency and transparency of government,” explained Foreign Minister Paet, adding that Estonia is happy to share its IT-related experiences with Afghanistan.
Within the framework of the project of the e-Governance Academy Foundation, an electronic voting, attendance registration and speech system will be developed and implemented in the two houses of Afghanistan’s parliament. The system being created will include speech and voting consoles, user authentication using fingerprints, screens and monitors for displaying information, and the supporting information system. Currently there is no voting system in the Afghan parliament, so voting takes place with red and green slips of paper.
The entire information system is being created through the international procurement procedure being prepared at the e-Governance Academy. The creation of the electronic information system will be preceded by an analysis carried out by the e-Governance Academy to determine the needs of the Afghan parliament.

FOREIGN NEWS

Euro Zone Finance Ministers Invite Estonia to Join Zone

8 June (BNS) - The finance ministers of the euro zone decided to invite Estonia to the euro zone from 1 January 2011, chairman of the euro zone countries Jean-Claude Juncker said late on Monday. In the ministers' opinion, Estonia has met all the criteria for accession to the euro and has conducted a strict and sensible budget policy.
"Estonia will become the 17th member of the euro zone on 1 January 2010," Juncker said after the meeting. He said the problems of the euro zone could not serve as a pretext to prevent a country that has met the criteria from acceding to it. Finnish Finance Minister Jyrki Katainen added, "We must give equal treatment to everyone. If there is a country that meets all the criteria it must have all the rights that the others had."
The EU finance ministers' meeting (Ecofin) took place on 8 June to discuss enlargement of the euro zone at the proposals of the European Commission, the European Central Bank and the European Commission. On 17 June the heads of government of the euro zone will discuss Estonia's accession to the zone and on 13 July the finance ministers will presumably endorse the decision concerning accession to the euro. A meeting of the European Council planned for 17-18 June will give an assessment to the convergence reports of the European Commission and the European Central Bank and the to the proposal of enlargement of the euro zone.

Establishment of IT Agency Discussed with European Parliament Co-Rapporteur

4 June - In Tallinn today Foreign Minister Urmas Paet met with co-rapporteur of the European Parliament Civil Liberties, Justice and Home Affairs Committee Alexander Alvaro, with whom he discussed matters related to the establishment of the EU IT agency. Paet told Alvaro about Estonia’s readiness to become the location for the IT agency.
Paet stated that Estonia is of the opinion that the new IT agency should become a very strong expert centre for managing and developing interior security IT systems. “Estonia sees the agency as a whole in the sense of a central management and development, though there may be many data centres. Spreading them out is necessary to reduce technical and security risks,” said Paet.
In addition, Paet and Alvaro discussed the 2003 decision of the European Council according to which new European Union agencies should be located in new member states that do not yet have agencies. “The balanced development of Europe is vital for everyone, and the principle of establishing new agencies in newer member states is important for all of Europe,” said Foreign Minister Paet.
Paet also introduced Estonia’s plans for contributing to the development of the agency to co-rapporteur Alvaro. “In addition to being ready to invest in the construction of the agency headquarters and a data protection centre, Estonia is preparing a syllabus at the European School for the children of agency employees,” Paet explained.
Most of the European Union member states agreed in 2009 that the IT systems require central management, and for this an IT agency must be established. Estonia and France have both made bids to become the location of the IT agency.

Ambassador to Romania Opens Honorary Consulate in Bucharest

8 June - Estonian Ambassador to Romania Taavi Toom opened the first Estonian Honorary Consulate in Bucharest. The Estonian honorary consul in Bucharest is Ingrid Cristea Vendelin.
Ambassador Taavi Toom stated that Estonia-Romania relations are good and co-operation is done in the framework of the European Union and NATO, where the nations have many common interests. “However, co-operation could be even closer in the economic and cultural spheres, and the opening of Estonia’s first honorary consulate in Romania will certainly help to make that happen,” said Ambassador Toom.
Estonian Honorary Consul Ingrid Cristea Vendelin also noted that cultural contacts between Estonia and Romania should be developed further; the honorary consul feels that the development of tourism holds potential as well.
The area covered by the new Estonian honorary consul is all of Romania. The honorary consulate is located at Str. Hagi Ghita nr 41, sector 1, Bucharest. The honorary consul can be reached by phone at + 40 727 321 921, by fax at + 40 21 224 05 01 and by email at ingridcristearo@yahoo.com.
Honorary Consul Ingrid Cristea Vendelin was born in Tallinn in 1973. Ingrid Cristea Vendelin graduated from the University of Paris and has a master’s degree in cinematography and audiovisual arts. The honorary consul has worked at the Romanian TV station PRO TV and been the executive director of the agency “Turn Studio”. Currently she is working as a freelance director. The honorary consul has been the Eesti Päevaleht’s press correspondent in Bucharest and Paris and published the book “Ly”. Ingrid Cristea Vendelin is married and has two children. The honorary consul speaks Estonian, English, French, Romanian, Russian, and Finnish.

Foreign Ministry Secretary General Opens Honorary Consulate in Brno

4 June - Foreign Ministry Secretary General Marten Kokk opened the Estonian Honorary Consulate in Brno, Czech Republic. The Estonian honorary consul in Brno is Vladimír Bulinský.
Marten Kokk stated that relations between Estonia and the Czech Republic have been good and long-lived. “Already in the 20s during the last century, our young nations established diplomatic ties and we had our first Estonian honorary consul in Brno,” said Kokk. The secretary general added that today the nations still share similar views. “Estonia and the Czech Republic have both integrated with Euro-Atlantic structures and started to support Europe’s eastern neighbours together,” said Kokk.
At the opening of the honorary consulate, the secretary general also noted that it is a joy to see the Czechs’ interest in Estonia growing year after year. “Among other things, it has brought about the translating of Vilde, Tammsaare, Kross, Kaplinski, Tätte and other Estonian authors into Czech and the creation of an Estonian language chair at the University of Brno,” Kokk said. “The Estonian Honorary Consulate in Brno will provide an even better opportunity to intensify ties and diversify relations,” he added.
The consular region of Honorary Consul Vladimír Bulinský includes the regions of South Moravia and Zlin. The honorary consulate is located at the address Tř. Kpt. Jaroše 13, 602 00 Brno, Czech Republic. The honorary consul can be reached at +420 542 215 109 and +420 542 219 678 and by email at bulinsky@bumama.cz.
Vladimír Bulinský was born in Brno in 1952. He earned a doctorate degree in law from Masaryki University and has worked as a lawyer since 1979. Since 1990 Bulinský has been a member of the Czech bar. The honorary consul is a partner in the law firm Bulinský & Vávra. He is also a member of the Brno Regional Chamber of Commerce, a member of the Masaryki University research council, and an arbitrator in the court of arbitration. The honorary consul speaks Czech, English, German and Russian.

Estonian Logisticians Distributing Development Aid to Afghan Women

7 June (BNS) - The Estonian logistics team in Afghanistan, NSE-9, has received the delivery of a development aid delivery to Camp Bastion meant for women of Lashkar Gah, the capital of the southern province of Helmand, and its surroundings.
The aid consists of 18 pallets of first aid kits dispatched from Estonia by the non-profit association Mondo in co-operation with the logistics centre of the Defence Forces, military spokespeople here said. The kits will be distributed among women from Lashkar Gah and neighbouring areas participating in first aid courses.
The shipment that arrived at Camp Bastion on Saturday contained 1 500 first aid kits in all. NSE-9 will organise the delivery of the aid.
First aid methods are taught in the framework of the Training for Women project. The Estonian health care expert Anu Raisma has already trained two midwives as first aid instructors. The kits also contain a first aid manual in Pashto printed in Kabul.
"In some regions where medical aid is not available, the knowledge obtained at the courses together with the skills of using the first aid kit could be the only way to save the life of someone dear to you," Raisma said.

Interior Ministry Sending Supplies to Help Contain Gulf of Mexico Oil Spill

8 June (BNS) - Estonia's Interior Ministry plans to send oil containment booms to the Gulf of Mexico spill site within a few days and buy new ones in the future, the daily Eesti Päevaleht says. The request for all kinds of oil containment equipment was sent to the ministry in mid-May by the Finnish company Lamor Corporation AB which is co-operating with the oil giant BP.
Interior Minister Marko Pomerants said on Monday that Estonia wants to assist in every possible way in cleaning up the environmental pollution in the Gulf of Mexico, but for the time being can only send containment booms to the disaster area. "The deal is that we make an assessment of the current value of the booms and Estonia will get new booms for this monetary value," the minister explained.
There are currently no plans for sending other equipment or pollution fighters to the Gulf of Mexico. The oil spill disaster was caused by an explosion on BP's drilling rig Deepwater Horizon on 20 April. Oil started gushing after the rig sank on 22 April.

DOMESTIC NEWS

Foreign Ministry Quiz Winners to Visit Estonia From USA, Russia

4 June - Foreign Minister Urmas Paet randomly selected the winners of the Foreign Ministry’s Estonia-themed web-based spring quiz. The grand prizes of the Foreign Ministry’s web-based quiz were trips to Estonia, which went to Hester White of the USA and Oksana Tshesnokova of Russia.
The goal of the Foreign Ministry Estonia quiz is to introduce Estonia to citizens of other countries by offering participants new and interesting facts in an effort to motivate them to do further research into Estonia and possibly even visit the country. “The opportunity to become acquainted with various places in Estonia makes the Foreign Ministry quiz interesting. Thanks to the fact that Estonian businesses have co-operated with us and have always donated prizes, the quiz has always been a success and become more and more popular,” said Foreign Minister Paet.
In this year’s spring quiz, there were 8 002 participants from 96 countries. Foreign Minister Paet stated that this is a record for the number of participants since the quiz began in 2002. “The tremendous number of participants also reflects multi-faceted interest in Estonia. In addition to our close neighbours, responses also came from every corner of the earth, for example New Zealand, Burkina Faso, South Korea, and Brazil,” Paet noted.
The most responses came from the United States, Russia, Ukraine, Finland and Poland.
The quiz was posted in two languages. There were 5 290 participants in the English-language quiz and 2 712 in the Russian-language quiz. Participants in the English-language quiz were eligible to win 5 trips in summertime Estonia. Prizes for the Russian-language quiz were three travel packages in Estonia.
The Foreign Ministry has organised Estonia-themed quizzes geared towards foreigners since 2002. This year the quiz was organized for the 15th time. The quiz consisted of twelve multiple-choice questions about different facets of life in Estonia. The quiz was open to participants from 1 March to 31 May, and could be seen at the address http://quiz.mfa.ee/.

DEFENCE NEWS

Ministry of Defence Cross of Merit Awarded to General Brady of USA

9 June - Today, Minister of Defence Jaak Aaviksoo awarded the Commander of U.S. Air Forces in Europe, General Roger A. Brady with the Ministry of Defence Second Class Cross of Merit.
According to Minister of Defence Aaviksoo, General Brady's contribution to the commencement of the Baltic air space regular air policing training exercises since 2008 has been extensive. "These exercises have directly improved the visibility of NATO as well as the collective defence in the Baltic states, thereby reinforcing our common security," the minister of defence said.
General Brady thanked the minister of defence for the honour and recognised Estonian military servicemen and officials for their effective and pleasant co-operation.
General Brady was visiting Estonia from 7-11 June with the purpose of attending the international Unified Engagement air forces seminar in Tallinn. The seminar taking place in Estonia is the fourth partnership-building event in the Unified Engagement series organised by the U.S. Air Forces in Europe in liaison with the air forces of the chosen host country. In addition to organisers from the United States and Estonia, air force delegations from Denmark, Finland, Latvia, Lithuania, Poland and Sweden participate at the event.

Half a Thousand US Marines Take Part in Exercise in Estonia

5 June (BNS) - Half a thousand US Marines, of which the last 300 arrived in Estonia on Saturday, will take part in the Baltops exercise on the Defence Forces central training ground in Hara Bay and on Loksa Beach.
The Defence Forces headquarters said that in the framework of the biggest naval exercise in the Baltic Sea, am exercise in landing and allied forces receiving would be held this year in Estonia and Latvia. Estonian land, naval and air force units, in addition to the men of the US marine battalion, will also be participating in the joint exercise. The general commander of the Estonian phase of the exercise will be Col. Peeter Hoppe, head of the operations department in the Defence Forces headquarters.
In the exercise, the US Marines and men of the Scouts Battalion will form a joint battalion, which will train tactical skills and perform shooting exercises on the Defence Forces central training ground. The commander of the battalion will be commander of the Scouts Battalion Lt. Col. Vahur Karus.
At the same time, naval ships along with the Baltic mine-hunting squadron and a NATO mine-hunting unit will carry out a mine-hunting exercise in Hara Bay, clearing shipping lanes for a landing operation to take place on 15 June. Real explosive devices will also be rendered harmless, if the need for that should arise. Of Estonian naval ships, the support ship Tasuja and the mine hunter Ugandi will take part in the exercise in the composition of the Baltic mine hunting squadron and the mine hunter Admiral Cowan in the NATO mine-hunting unit.
The exercise will culminate on 15 June on Loksa Beach, in the course of which Marines and the Defence Forces reconnaissance platoon will carry out a landing exercise from the US naval ship Gunston Hall.
Last week representatives of the three Baltic countries and of the US European command exercised the reception of allied troops in the Baltic Host 2010 exercise. In all, the Baltic countries will carry out three exercises in co-operation with the United States this year: in addition to the exercise that was recently concluded and the one to start next week, there will be the Sabre Strike exercise in Latvia in November.

ECONOMIC NEWS

Standard & Poor’s Ups Estonia’s Credit Rating

10 June (BNS) - The international ratings agency Standard & Poor's (S&P) said on Thursday it had raised its long-term foreign and local currency sovereign credit ratings on Estonia to A from A-. The short-term local and foreign currency sovereign credit ratings on Estonia were raised to A-1 from A-2. The outlook is stable, S&P said in a statement.
The country's euro accession "should reduce exchange rate risk and improve Estonia's access to European capital markets," S&P said. The stable outlook reflects S&P's view of Estonia's economic flexibility and improving competitiveness against the challenges inherent in adapting the economy to lessen its reliance on external funds.
S&P said the ratings reflect its view "of the clear commitment of Estonia's political parties to support and implement budgetary and structural policies to address the effects of severe economic recession, anchor the currency board arrangement, and safeguard public finances. S&P expects Estonia's economy to expand 1% in 2010.
The Estonian government has managed to increase revenues relative to GDP, and the general government deficit declined to 1.7% of GDP in 2009 from 2.8% in 2008, despite the strong economic contraction, S&P said.
The agency said it expects the deficit to increase slightly to 2.4% of GDP in 2010 and to gradually return to balance by 2013. Consequently, S&P expects Estonia's low general government gross debt to rise to about 11% of GDP by 2013 from 5% in 2008.
Estonia's per capita income, which is comparatively low compared with the 'A' median, reduces Estonia's ability to adjust to shocks – all other things being equal, S&P said.
Domestic and external leverage in the private sector is sizable, particularly in the financial sector, and the continued reduction of leverage could hamper economic growth. The direct risk posed by the financial sector's contingent liabilities is mitigated, in S&P's view, by the almost exclusive dominance of supportive Nordic parent banks.
Sustained progress in moving the economy to a growth model less dependent on the inflow of external funds could result in a positive rating action, S&P said.

Export of Goods Up 35 Percent on Year in April

9 June (BNS) - The export of goods in April grew 35% in current prices compared with April 2009, while the growth in import was by 16%, Statistics Estonia said. The growth in export was last this high in June 2006. The fast growth in export was partly also influenced by the low basis of comparison in April 2009, the statistical office said.
In April goods to the tune of 10.5 billion kroons (EUR 0.67 mln) were exported from Estonia and goods worth 10.8 billion kroons were brought into the country. Against last April export grew 2.7 billion kroons and import 1.5 billion kroons. The foreign trade deficit was 0.3 billion kroons in April, nearly five-fold lower than last April.
Goods worth 7.3 billion kroons were exported into countries of the European Union, accounting for 69% of Estonia's total export. The growth in export was by 1.7 billion kroons or 30%. To countries outside the EU goods to the tune of 3.2 billion kroons were exported, half as much as in April 2009.
Imports from countries of the European Union into Estonia totalled 8.7 billion kroons, while import grew by 1.4 billion kroons or nearly one fifth. The trade deficit with countries of the European Union was 1.4 billion kroons, while there was a surplus of 1.1 billion kroons in trade with third countries.
Compared with April export grew by 8%, while import contracted by 14%.

Estonian Companies’ Profits Double in Q1

4 June (BNS) - In the first quarter of this year the total profit of the Estonian business sector amounted to 4.8 billion kroons (EUR 0.3 b), doubling in comparison with the same period a year ago but staying on the same level as in the final quarter of last year, data of the national statistics office show. Compared to the first quarter of 2009, total profit increased the most in manufacturing.
Construction, transportation and storage as well as accommodation and public catering activities were running at a loss.
Net sales of the business sector totalled 118 billion kroons. Compared to the previous quarter, seasonally adjusted net sales grew for the first time after a decline of two years, increasing by 3%. Year on year, first-quarter net sales showed a drop of 2%.
Enterprises invested 5.1 billion kroons in the three months, half less than during the same period of last year. Investments were mainly made in equipment and machinery and in the construction and alteration of buildings.
The major investors were energy, transportation and storage, and manufacturing enterprises which accounted for about half of the total. Only investments in machinery and equipment increased.

Number of Tourists Grows 13 Percent on Year in April

10 June (BNS) - In April, 170 700 foreign and domestic tourists stayed in Estonian accommodation establishments, 13% more than in the same month a year earlier, Statistics Estonia said.
Foreign tourists numbered 115 300, which marks a 13% increase over April 2009. The number of domestic tourists was 55 400, up 11%.
The number of tourists from Finland, Russia, Sweden, Germany and the United States increased in the accommodation establishments of the Estonian capital Tallinn. Unlike in previous years, the number of accommodated domestic tourists increased as well. A quarter of the domestic tourists using paid accommodation stayed at an accommodation establishment in Tallinn, and their number was 28% greater than in April a year ago.
In April 769 accommodation establishments with 17 000 rooms and 37 000 beds were available to tourists. The average room occupancy rate was 38%.

Italian Carrier WindJet to Operate Flights Between Tallinn, Forli in Summer

7 June (BNS) - The Italian carrier WindJet is scheduled to operate direct flights between Tallinn and Forli, Italy, from 30 June until the end of summer, the daily Eesti Päevaleht reported. The once-weekly flights will depart from Forli at 10 a.m. and from Tallinn at 3 p.m. on Wednesdays. The flight takes three hours.
The Swedish representative of the Italian tourism agency has said the flights would be operated until 1 September.
According to WindJet's website, a one-way trip costs around 100 euros and a return trip 205 euros including fees. Estonian Air operates regular flights to two Italian destinations during the summer, flying to Milan twice a week and to Rome once a week.

H1 Exports by Poultry Producer Tallegg to Nordic Countries Soar Fivefold

10 June (BNS) - The Estonian poultry company AS Tallegg exported 207 tons of broiler meat to Finland, Sweden and Denmark in the first six months of this year, almost five times more than the 42 tons exported during the same period a year ago. The company is planning to boost the share of exports from the current 25% of its total output to 40% by 2013.
"There's a lot of demand in Nordic countries for high quality broiler fillet and this is a very important and growing export channel for Tallegg. Also strategically important for Tallegg is the sale of chicken wings to Asia, in which direction we are hoping the range of our exports to expand soon," Tallegg CEO Teet Soorm said.
He said the company was seeking to establish a foothold on more and more foreign markets as on the small Estonian domestic market growth opportunities remain limited. However, Estonia remains the primary market for Tallegg and the entire product development is done with Estonian needs in mind, Soorm added. "We also consider Latvia as almost our home market – we sell a broad range of products there in the amount of more than 200 tons a month," said Soorm.
Tallegg is part of the HKScan group. In 2009, the company raised 8.6 million broilers, produced 75 million eggs and sold 18.2 million kilograms of poultry meat and products.
Sales in 2009 totalled 688 million kroons and the company employs 470 people.

CULTURAL NEWS

Estonia Helps Tbilisi Establish European Union Library

7 June - The Foreign Ministry is supporting the creation of a European Union-themed library in the Europe House in Tbilisi, Georgia. Foreign Minister Urmas Paet stated that Estonia supports Georgia’s integration with the EU. “In order for Georgia to move towards the European Union, it is also necessary to increase the Georgian public’s knowledge of how the EU functions and of the opportunities the EU provides,” stated Foreign Minister Paet. “The goal of creating a European Union library is to increase knowledge of the EU in Georgia and to provide information on, for example, opportunities for education, culture and co-operation in Europe,” he added.
Within the framework of the project initiated by the Estonian Embassy in Georgia, a computer corner will also be created in the Europe House library, through which it will be possible to access databases of information about the European Union.
The goal of the Europe House is to increase people’s awareness of the European Union, its member states and its institutions.