EESTI RINGVAADE VOLUME 16 NO 47 NOV 29 -DEC 5, 2006
FOREIGN NEWS
Civilian, Military Contributions to Afghanistan Important for Estonia
Nov 29 - Estonian Prime Minister Andrus Ansip, Foreign Minister Urmas Paet and Defence Minister Jürgen Ligi took part in the NATO summit in Riga, where the central issue was strengthening of the Afghanistan mission.
The allies found that the countries contributing to the southern part of Afghanistan would have to be given more support, and both military forces and financial resources would have to be found.
Military and civilian participation in the reconstruction of Afghanistan are priorities for Estonia.
To achieve success, Ansip said, it is important to have close cooperation between NATO and the European Union in the reconstruction of the Afghanistan society.
"Most NATO countries are also members of the European Union and it is self-evident that the two organizations will closely cooperate," Ansip said.
The summit gave a clear message of the continued enlargement of NATO and confirmed its open doors policy.
Bosnia and Herzegovina, Montenegro and Serbia were invited to join the NATO Partnership for Peace program.
The allies also recognized the efforts of Albania, Croatia and Macedonia on their course to accession with NATO and gave a high assessment of their contribution to peace operations.
"All the new democracies in Eastern and Southern Europe must have the opportunity of freedom and security," Ansip said.
The summit underlined that the ongoing reorganizations of the state defence systems must continue in Ukraine and Georgia and those countries' potential accession depends on their success in meeting the terms required for accession to NATO.
The meeting underlined the need to preserve Georgia's territorial integrity.
Defence and foreign ministers of countries making contributions to South Afghanistan met in the framework of the summit, in order to discuss improvement of cooperation.
The focus in the foreign ministers' meeting was on the Afghanistan and Iraq missions.
"Activation of the NATO training mission is of major importance in the strengthening of Iraqi military forces," Foreign Minister Paet said. "The NATO training mission has to be strengthened both in financial and manpower terms. Activity of the training mission has to be extended also to police forces."
The allies underlined that the tasks can only be carried out if there is sufficient funding and stressed that the state defence budget of countries of the alliance must increase.
A meeting between German Federal Chancellor Angela Merkel and leaders of the Baltic countries also took place in the framework of the summit. It focused on issues that will become of importance during the German presidency of the European Union.
The meeting with Merkel addressed the common European energy policy. It was underlined at the meeting that the EU energy policy must be based on common, not on separate countries' interests.
The gas pipeline to be built from Russia to Germany through the Baltic Sea has been controversial in the Baltic countries.

Family portrait with Heads of State and Government
NATO and EU Need Not Enlarge Hand in Hand -- Estonian President in Riga
Nov 29 - Estonian President Toomas Hendrik Ilves said that NATO and the European Union (EU) need not enlarge hand in hand, citing the so-called enlargement weariness in the EU.
"It is possible to speak about enlargement weariness in the European Union, but not in NATO where such weariness cannot be felt," Ilves said, speaking at an international security conference on the sidelines of the NATO Riga summit.
The Estonian head of state added that enlargement of NATO and the European Union does not have to go hand in hand and that countries aspiring to join these organizations would have to set their goals in line with the reality.
"The European Union needs more courage and vision in dealing with neighbourhood problems, while understanding that a danger exists that the European Union’s neighbourhood policy may become a mechanism for exclusion," Ilves said. "The European Union’s neighbour states should not have to feel as if they are not really like us."
The president added that NATO and the European Union are the main levers for solving the problems of our environment. "For us, these problems are moral, philosophical, political, as well as economic," he added.
Ilves met with Nino Burdjanadze, Speaker of the Georgian Parliament. Burjanadze briefed Ilves on the CIS summit in Minsk and the Estonian president spoke about US President George W. Bush's visit to Tallinn.
Estonia in Favour of Continuing Accession Talks with Turkey
Nov 30 - Estonian Foreign Minister Urmas Paet said Estonia supports continuation of the accession talks with Turkey and wants slightly more lenient measures taken than those suggested by the European Commission.
The European Commission recommended on Nov 30 that eight chapters of the accession talks between the European Union (EU) and Turkey be closed in connection with Turkey's refusal to open its ports to Cyprus. The chapters to be frozen pertain to the EU internal market, free movement of goods, customs, transport and maritime issues.
Paet said that Estonia supported the freezing of three negotiating chapters, those of free trade, the customs union and transport.
"The Estonian position is that the issue of Cypriot ships' entry into Turkish ports must be solved, but the measures taken with respect to Turkey must not be disproportionate," Paet said.
Paet Slams Arrest of Belarus Opposition Leader
Nov 30 - Estonian Foreign Minister Urmas Paet has criticized the arrest of the Belarus opposition leader Alexander Milinkevich at Minsk Airport.
Milinkevich was arrested when he returned to Belarus as he had erroneously presented to the border guard his son's passport.
"It is a pity such a slip had to be punished by arrest," Paet said.
Paet said it was a well-known fact that the attitude to opposition leaders is harsh in Belarus.
Japanese Emperor to Visit Baltic Countries in May
Nov 30 - The Emperor of Japan Akihito and Empress Michiko are planning to visit the Baltic countries next May.
The Foreign Ministry is in the initial stage of planning the visit.
US Ambassador to Estonia Announces Her Departure
Dec 4 - The US ambassador to Estonia, Aldona Wos, announced her departure.
"It is with mixed emotions that I announce the completion of my assignment as the US ambassador to Estonia. I have had a wonderful experience representing the United States here in the beautiful country of Estonia," Wos said in a statement.
"The time has come, however, for me to go home and reunite my family," she said.
"During my tenure as US ambassador, I have accomplished everything that I set out to do. First and foremost, I have worked to improve the outstanding US-Estonian relationship which culminated in President Bush's recent successful visit to Tallinn," she said.
The ambassador pointed out the US embassy's work to promote the issues of integration and tolerance through conferences, seminars, film, and sporting events bringing together Estonian and Russian-Estonian students.
"As a medical doctor, I'm also particularly proud of the work that the US embassy has done to promote HIV/AIDS awareness and fight the spread of this disease in Estonia. I have also worked together with the Estonian government to explain the threat posed by human trafficking," Wos said.
"While in Estonia, I've had the chance to visit all fifteen counties and speak to thousands of different Estonians. I'm particularly proud of the fact that my staff and I have visited over 100 high schools across Estonia. In speaking to these young people who represent Estonia's next generation, I am confident that Estonia is in good hands and will continue to thrive within the European Union, NATO, and the larger world community," the US ambassador said.
Wos started work as ambassador to Estonia on Aug. 13, 2004. Born in Poland, she grew up in Long Island in New York. She is a graduate of the Warsaw Medical Academy and completed her internship and residency in New York, specializing in lung diseases.
Stanley Davis Phillips to Become New US Ambassador to Estonia
Dec 5 - President George W. Bush announced his intention to nominate Stanley Davis Phillips, of North Carolina, to be ambassador extraordinary and plenipotentiary of the United States of America to the Republic of Estonia, the US embassy said.
Phillips currently serves as chairman of Phillips Industries, Inc, an investment holding company with textile and furniture interests. He served as secretary of commerce for the State of North Carolina and most recently he served on the National Board of the Smithsonian Institution in Washington, DC.
He was a major fundraiser in the Bush campaign in 2004.
The brother of Stanley Davis Phillips, Earl Phillips Jr., has served as the Barbados-based ambassador of the United States to the Eastern Caribbean.
Estonian President Invites King of Sweden to Tartu University Anniversary
Nov 30 - Meeting with King Carl XVI Gustaf of Sweden, Estonian President Toomas Hendrik Ilves extended to him an invitation to take part in the celebrations of the 375th anniversary of Tartu University.
The 375th anniversary celebrations of Tartu
University, founded in 1632, will take place next year. The founder of the university was King Gustavus II Adolphus of Sweden.
Meeting with the Swedish parliament's speaker, the prime minister and the minister for foreign and European affairs Ilves mainly spoke about developments in the European Union and in the vicinity of the community.
"We have the same positions as Sweden regarding almost all questions related to the European Union," the Estonian president said at the press conference held together with Swedish Prime Minister Fredrik Reinfeldt after the meeting.
Ilves's meeting with Speaker of the Swedish Parliament Per Westerberg focused on energy security of the region, including the Russian-German gas pipeline to be built through the Baltic Sea, concerning which the foreign affairs committee of the Swedish parliament is planning to have a public hearing.
"We have both security and environmental concerns in connection with that pipeline," the Estonian president said.
Westerberg underlined that it was important to have closer parliamentary cooperation between European countries than at present in order to solve internal issues.
Discussing EU-Russian relations, President Ilves and Swedish Prime Minister Fredrik Reinfeldt found that use of energy carriers and the energy price for political pressure was inadmissible, and it was imperative to stick to regulations of trade accords, such as of the World Trade Organization.
The Estonian head of state also visited the Estonian School in Stockholm, and institution established in 1945 that currently has 179 students. Before flying back to Tallinn, President Ilves met with local Estonians at Estonian House in Stockholm, the home of Estonian organizations in Sweden.
Parliamentary Panels Concerned about Baltic Sea Energy Security
Dec 1 - A meeting of chairmen of the parliamentary foreign affairs committees of the Baltic and Nordic countries in Vilnius focused on energy security in Europe and the Baltic Sea region.
All participants emphasized the importance of energy security for the region and whole Europe.
Enn Eesmaa, head of the Estonian parliament's Foreign Affairs Committee, said, with reference to a study commissioned by the committee, that it is necessary to examine more thoroughly different possibilities for achieving energy independence.
"We, the countries of the Baltic Sea region, attach great importance to the issue of energy security and a common position on this question is imperative," he said.
The chairmen adopted a statement on the Russian-German natural gas pipeline underlining the need for continued cooperation on the basis of the Espoo Convention to study the pipeline's impact on the ecosystem of the sea before the start of construction.
Other subjects under discussion were a Baltic Sea strategy in the context of the Northern Dimension and effective securing of stability in neighbouring countries.
Speaking about the European neighbourhood policy, the committee chairmen affirmed continued support for countries that have chosen the path of democracy but noted that all of them are facing different problems which have to be treated individually.
The meeting was attended by heads of the Estonian, Danish, Icelandic, Latvian, Lithuanian, Norwegian, and Swedish parliamentary committees. Poland was invited as a guest.
The next Baltic-Nordic meeting will take place in Norway.
Paet: Unilateral Sanctions Not a Modern-Day Measure
Dec 4 - In his remarks at the 14th session of the ministerial council of the Organization for Security and Cooperation in Europe (OSCE), Estonian Foreign Minister Urmas Paet said unilateral sanctions were not a contemporary means of politics.
Speaking about Georgia and Moldova, Paet said the need has grown to direct more attention to the regions of frozen conflicts.
"We have seen many positive developments, but worrisome signs of a halt in the process have persisted," Paet said during the meeting in Brussels.
Estonia hails the agreement whereby Russia is giving up its bases in Georgia, the minister said. At the same time, Estonia is pointing out that the OSCE cannot turn a blind eye on Russia's punishing behaviour vis-à-vis its neighbour.
Georgia must be supported in its carrying out of reforms, Paet said.
Speaking about foreign peacekeepers in Moldova, Paet stressed the need for a political agreement that would ensure a lasting and permanent peace and conditions for the political and economic revival of the Moldovan nation.
"We need a firm agreement that would be supported by both the Moldovan people and the international community. Moldova needs the unequivocal support of the OSCE and its involvement in the process of finding a solution," Paet said.
Paet said the OSCE has had a laudable role in promoting tolerance and fighting against discrimination and that multicultural dialogue has helped to ease tensions arising from prejudice.
"In spite of this, the battle continues, since some of the relevant countries are acting in a contrary manner," he said.
Paet: Azerbaijan Could Be Alternative Source of Energy for Europe
Dec 5 - Meeting with his Azerbaijani counterpart Elmar Maharram oglu Mammadyarov, Estonian Foreign Minister Urmas Paet said Azerbaijan could serve as an alternative source of energy for Europe.
The conversation between the two ministers took place on the sidelines of the OSCE ministers meeting and dealt with ways how to promote bilateral relations, the European Union's neighbourhood policy action plan for Azerbaijan, energy matters and the situation in Nagorno-Karabakh.
The sides found that relations between the two countries are stable and good, but could indeed be closer.
Paet said the set of agreements between the two countries should be expanded, first and foremost in what regards economic agreements.
He said that even though modest at present, economic cooperation between Estonia and Azerbaijan is showing a rising trend.
The sides agreed that in 2007 political consultations would be started between the two foreign ministries.
Another matter spoken about was energy security. The foreign minister of Azerbaijan expressed satisfaction with cooperation with the EU in that field. As Mammadyarov said, the Caspian Sea is the sole new alternative for supplying Europe with energy.
Both in the European Union as well as in NATO a lot is being talked about lately about diversity of sources of energy supply, Paet said.
"In the case of Azerbaijan there is a clear opportunity to make the transition from words to deeds," Paet said.
"The Baku-Ceyhan oil pipeline serves as a very good example," he added.
Speaking about the EU neighbourhood policy action plan, the sides were satisfied that the plan sets out concrete actions to promote the development of Azerbaijan.
Paet handed an invitation to the foreign minister of Azerbaijan to visit Estonia. The Azeri side forwarded to the Estonian side an invitation for the Estonian president to visit Azerbaijan as well as for the Estonian foreign minister to make a visit to that country.
Estonia, Kyrgyzstan Mulling Appointment of Ambassadors
Dec 4 - Estonia's Foreign Minister Urmas Paet and his Kyrgyz counterpart Alikbek Jekshenkulov found during their meeting in Brussels that relations between the countries need to be intensified and the appointment of non-resident ambassadors is worth giving consideration to.
Paet and Jekshenkulov also mulled the possibility of appointing honorary consuls.
The Estonian minister said that first of all the set of agreements existing between the two countries should be expanded and then political ties intensified.
Paet made a proposal to hold political consultations between the two foreign ministries next year.
The foreign minister of Kyrgyzstan said Estonia could share its reform experience and help train Kyrgyz specialists.
Estonia wishes to continue arranging seminars, Paet said.
"“We have shared our experience with Kyrgyzstan in the past, in the framework of development cooperation, and we certainly wish to continue this in the future as well," Paet said.
Another area of cooperation seen by Estonia as having good prospects is tourism, Paet said.
Paet Invites His Armenian Colleague To Visit Estonia
Dec 5 - Meeting with his Armenian counterpart Vartan Oskanyan in Brussels, Estonia's Foreign Minister Urmas Paet invited the Armenian minister to come to Estonia on a visit.
During the meeting that took place on the sidelines of the ministers meeting of the Organization for Security and Cooperation in Europe (OSCE), Paet and Oskanyan spoke about relations between the two countries, the EU neighbourhood policy action plan for Armenia and the conflict over Nagorno-Karabakh.
The ministers stated that while relations between the two countries are good, there is a lot of room for development.
They agreed that political consultations between the two ministries will be held next year to evaluate the state of affairs in relations and set out plans for the future.
Paet invited his Armenian colleague to visit Estonia.
The ministers expressed their satisfaction with the EU neighbourhood policy action plan's being very precise with regard to Armenia and focusing on concrete activities.
Paet said implementation of the action plan would have a substantial effect on the development of the countries of the South Caucasus and a positive effect on the entire region.
The Armenian foreign minister described Estonia's reform experience as in every way valuable and welcome for Armenia.
PM Thanks Portugal for Good Cooperation
Dec 5 - Estonian Prime Minister Andrus Ansip in Portugal met with Portugal's President Anibal Antonio Cavaco Silva, thanking the head of state for cooperation and Portugal's support for Estonia.
The prime minister thanked Portugal for good cooperation between the countries in international organizations, in which Portugal's contribution to the NATO air policing mission in the Baltics is especially important for Estonia.
As border countries of the European Union, Estonia and Portugal enjoy very good mutual understanding, Ansip said.
Both countries see successful regional policy as well as trans-Atlantic cooperation as important.
Speaking about illegal migration, a major problem for the Mediterranean region, Ansip said Estonia understands and supports Portugal's aspirations to deal not only with the consequences but also with the causes of the problem.
Positive mention was made during the meeting of the fact that Portugal never recognized the Soviet annexation of Estonia. While serving as prime minister of Portugal in 1985-1995, Cavaco Silva refused in his exchanges with the Soviet Union to visit occupied Estonia.
Ansip thanked Portugal for its support to the teaching of the Portuguese language in Estonia. The Camoes Institute signed agreements with the universities of Tallinn and Tartu in September this year whereby the institute promoting the study of Portuguese language and culture covers the expenses related to the teaching of Portuguese.
"I'm sincerely pleased that from now on it is possible also in Estonia to learn the language that is spoken by some 200 million people worldwide," Ansip said.
Portugal opened its embassy in Tallinn in September.
The prime minister also opened an exhibition of Estonian knitted mittens at the National Clothing Museum in Lisbon.
PM: Estonia to Help Make Portugal's Presidency a Success
Dec 5 - Meeting with his Portuguese counterpart Jose Socrates, Estonian Prime Minister Andrus Ansip stressed Estonia's readiness to support Portugal during its presidency of the European Union.
The Portuguese prime minister said that not all the priorities for the Portuguese presidency have yet been set out.
"We hope that Estonia will support Portugal during our presidency, because in order for it to succeed a relationship of trust between good partners is of primary importance," Socrates said during the meeting which focused on EU related topics.
The Estonian prime minister underlined that a strong and efficiently working European Union is in the interest of all member states and that there is readiness to extend all-round support to Portugal.
Estonia backs further enlargement of the EU, Ansip said. At the same time, Estonia regards support for democratic development in Georgia, Ukraine and Moldova as important.
Estonia understands the problems related to the Mediterranean region, such as illegal migration, he added.
The Estonian premier thanked Portugal for its active role in making as speedy as possible enlargement of the Schengen area happen.
The Portuguese prime minister hailed Estonia's rapid development and economic growth, saying he was pleased that Soviet heritage can today be seen only in antique stores.
Portugal is very much interested in continued cooperation with Estonia both on the level of the EU as well as bilaterally, Socrates said.
During the meeting of prime ministers also trans-Atlantic relations, the recent visit by US President George W. Bush to Tallinn and issues related to the enlargement of the European Union were talked about, including the accession negotiations of Turkey with the EU.
In Ansip's meeting with Portugal's minister for economy and innovation, Manuel Pinho, economic cooperation and innovation were spoken about.
Ansip also met with the vice speaker of the Portuguese parliament, Guilherme Silva, with whom the possibility to create a parliamentary group for ties with Estonia in the Portuguese parliament was discussed, among other things.
Moscow Will Hopefully Continue Working with Border Treaties -- Estonian Ambassador
Nov 29 - Estonian Ambassador to Russia Marina Kaljurand expressed the hope that Russia would return to the ratification of the two countries' border treaties.
"We do not and cannot have any territorial claims to Russia," Kaljurand said. "We very much hope that Russia will return to ratification of the treaties." Kaljurand underlined that Estonia had already ratified the treaties.
Estonia and Russia signed the Estonian-Russian treaties on the land and the sea borders on last May 18, the parliament ratified them on June 20 and President Arnold Rüütel promulgated the ratification act on June 22.
But on June 27 Russia declared that it would withdraw its signature from the border treaties.
Kaljurand said that she believed no changes could be expected in the issue of the Estonian-Russian border treaties in the near future.
The ambassador also criticized the permanent long queues at the Narva checkpoint in Estonia, underlining that the problem had not been created by Estonia and that Estonian authorities were prepared to speed up the passage of vehicles.
Speaking about the prohibited structures bill currently being discussed by the Estonian parliament, Kaljurand said that Estonia had no intention of dismantling all the monuments erected to Soviet soldiers. She said handling of the bill was necessary and right, because laws are the expression of the will of the people.
The ambassador said that in the first half of the year representatives of marginal groupings had started to gather at the World War II monument, with some of them supporting the Soviet Union and others expressing ideas of radical nationalism.
She added that the monument had acquired another meaning and no longer depicted just a liberator but also an occupier, specifically as a result of the marginal groups' activity.
Kaljurand also said that if a decision was taken concerning the World War II monument after passage of the act, it would be in line with international law and ethical standards.
Ambassador Invites Russian Church Head to Visit Estonia
Dec 4 - The leader of the Russian Orthodox Church, Patriarch Alexius II, met with Estonia's Ambassador Marina Kaljurand, who gave the Russian church head an invitation to visit Estonia.
"I handed to His Holiness an invitation to visit Estonia in the near future, along with the president's wish to meet with the church head," Kaljurand said after the conversation that took place at Alexius's residence.
The ambassador expressed hope that the head of the Russian Orthodox Church will find the "time and opportunity" to visit his native country.
Also spoken about during the meeting were matters of economy, demography and handover of church property.
The conversation was held in Estonian and lasted more than an hour.
Foreign Ministry Posting Extra Visa Staff to Russia
Dec 4 - Citing an increase in the number of visa applications before the Christmas and New Year holidays, the Estonian Foreign Ministry is sending additional personnel to work as consuls and visa secretaries in Moscow and St. Petersburg.
The first extra staff were dispatched to the Estonian consulate in St. Petersburg at the beginning of November and to the embassy in Moscow at the end of the month.
The extra personnel will work at the consulate in St. Petersburg until Jan. 14 and in Moscow until Dec. 31.
The Foreign Ministry also said that in the first 11 months of this year more visa applications were filed at Estonia's missions abroad than during the whole of 2005.
The total number of applications in the first 11 months of the year was 111,297, compared with 105,595 in the 12 months of 2005.
Noteworthy growth took place in the number of applications filed in Russia, with 35,473 applications accepted in the January-November period in Moscow, 45,926 at the consulate in St. Petersburg and 5,881 at the consular office in Pskov. In the whole of 2005, 35,502 applications were handled in Moscow, 44,711 in St. Petersburg and 5,833 in Pskov.
The number of visa applications has grown at other missions too.
The number of applications accepted in Ankara grew to 1,588, in Kiev the number grew from to 7,955, and in Minsk to 4,085.
The respective figures were for Riga 850, for London 821, for Stockholm 667, for Beijing 566, for New York 385, for New Delhi 344, and for Tokyo 168.
MEP: EU Must Make Clear to Russia the Importance of Human Rights
Nov 30 - Tunne Kelam, representative of the European People's Party-European Democrats faction in the European Parliament, said the European Union (EU) must make clear to Russia that it does not see human rights as a second-rate value.
Speaking at a plenary session, Kelam drew attention to the fact that Russia had not reacted to the European Parliament's recent resolutions pertaining to Russia.
"Raising of issues sensitive for Russia is no longer enough in the present situation -- we need answers concerning substance and real changes," Kelam said.
"Only changes in the form of positive reforms can become a new source of trust in continuing our strategic partnership with Russia," Kelam said.
Kelam called on the MEPs to more actively stand for the European Union's basic principle, that of solidarity.
"The European Union much too often regards Russia's relations with the member countries as being bilateral. Our message to Moscow must be clear and unambiguous -- if it puts pressure on one member country Russia will have to bear in mind that it will immediately become a problem for the whole of Europe," Kelam said.
"Russia cares for its relations with the European Union and its image as a global partner not less than the European Union. As a result the European Union must make President Putin work in order to prove by means of concrete acts that Russia can be a normal, sensible and trustworthy partner," Kelam said.
A resolution pertaining to relations between Russia and the EU will be put to vote at this year's last full assembly of the European Parliament in December.
European Customs Leaders Trying to Solve Border-Crossing Problem
Nov 30 - European customs leaders meeting in Brussels recommended that common border checkpoints be created in order to shorten the lines of vehicles waiting to cross the eastern border.
Enriko Aav, Director General of the Tax and Customs Board, said Estonia expressed support to the European Commission's action plan as well as to the creation of common checkpoints, the Tax and Customs Board said.
"But we have to bear in mind that the problem can be solved only if also Russia supports the proposals," Aav said.
The problem of lines to cross the border is serious in Finland, Estonia and Latvia. The lines grew at the end of summer, extending to 40 kilometres in Finland, 20 in Latvia and 10 kilometres in Estonia.
The Tax and Customs Board informed the European Commission in September of the need to solve the problem.
Lines of Trucks at Estonia's Eastern Border Much Shorter Than Before
Dec 4 - The lines of vehicles at Estonia's eastern border, which have repeatedly grown and shrunk since this summer, have now become significantly shorter than usual.
Delays in crossing of the Estonian-Russian border arose after Russian President Vladimir Putin expressed dissatisfaction with corruption in his country's customs service and weakness of the customs in its struggle with contraband. Putin’s announcement prompted more thorough Russian customs checks on vehicles in the second half of July.
Considering seriousness of the problem, Estonia sent a note to Russia, drawing Russia’s attention to the critical situation on the Estonian-Russian border and expressing the hope the neighbouring country's authorities would take steps to improve the situation.
In September, Russian Transport Minister Igor Levitin said that the Russian customs service was responsible for the lines at the border. Attending a EU-Russian transport discussion in Lappeenranta in Finland, he admitted that the activity of the Russian customs did not always meet transport leaders' wishes and information about changes introduce in the customs service moved slowly.
Estonia to Chair Organized Crime Task Force
Nov 30 - Estonia will take over chairmanship of the Baltic Sea countries' organized crime task force for the next two years.
Interior Ministry Secretary General Märt Kraft and Estonian experts of the task force took part in the task force meeting where the new presidency was decided.
The chairman of the task force is Interior Ministry Secretary General Mart Kraft who will introduce the action plan of the Estonian presidency of the task force together with Lenno Reimand from the Central Criminal Police.
"The main aim of the Estonian presidency will be even bigger orientation to results," Kraft said.
He said the most important line for the task force would certainly be cooperation with Europol in fighting organized crime, as well as supporting practical anti-crime cooperation with EU and Russian law enforcement authorities.
During the meeting the present Finnish presidency will give an overview of the work of the task force in the two preceding years.
The Baltic Sea countries' organized crime task force was set up in 1993 with the aim of common activity in fighting organized drug and human trafficking, money laundering, smuggling and environmental crime.
The task force includes representatives from the Danish, Icelandic, Norwegian, Swedish, Finnish, German, Polish, Russian, Latvian, Lithuanian and Estonian governments as well as a representative of the European Commission.
Estonia is represented in the task force by the Interior Ministry secretary general.
Estonia Not to Allow Use of Schengen Visas for Transit
Dec 4 - Estonia will not immediately apply an EU decision concerning the use of Schengen visas and residence permits as national transit visas.
Upon entry into the EU, Estonia took on an obligation to apply Schengen regulations in two stages. Until the Council makes a decision allowing Estonia to fully accede to the Schengen area, Estonia will continue to issue domestic visas to citizens of third countries.
Among the reasons behind the Estonian decision is the fact that Estonia lacks access to the relevant EU databases and thus cannot directly access records on residents of third countries arriving on a Schengen visa. Thus, agreeing to the EU decision would mean a security and immigration risk for Estonia.
Recognizing Schengen visas and residence permits would make it difficult to verify the actual purpose of a person's arrival in Estonia, and the opportunity to enter the country on such a visa could be used for ordinary entry rather than entry for transit.
Riigikogu Appoints Laaneots as Army Chief
Dec 5 - The Estonian parliament appointed Maj. Gen Ants Laaneots, chief of the Estonian National Defence College, as commander of the Estonian defence forces.
The respective bill was backed by 77 deputies in the 101-seat chamber in the secret ballot, with two MPs voting against and three abstaining.
In the memorandum to the draft, the president said Laaneots has proven himself as a strong leader in various positions and is besides solid military experience characterized by cooperativeness.
The president decided to nominate Laaneots for army chief after his proposal had won the backing of the National Defence Council. Laaneots was also the first preference of all parliamentary groups with whose representatives the president met.
Laaneots graduated from the Soviet tank forces school in Kharkiv, Ukraine, and the Malinovsky academy of tank forces in Moscow. He has also studied at the NATO Defence College in Rome and passed a senior command course in Finland.
As a member of the Soviet military, Laaneots served for some time as adviser to the commander of an infantry division and army corps in Ethiopia.
After returning to Estonia, he served as head of the office in charge of military recruitment and reserve in Tartu from 1989-1991, retiring from the Soviet military holding the rank of colonel.
After Estonia had regained its independence, the government in the autumn of 1991 tasked Laaneots with re-establishing the General Staff, which Laaneots headed in 1991-1994.
During the next two years Laaneots worked as regional director for the private security firm ESS.
He was appointed defence forces' chief inspector in 1997 and again headed the General Staff from 1997-1999.
Before his appointment as chief of the defence college in 2001, Laaneots headed the Baltic Centre for Defence Studies. In 2002 he was appointed Estonia's military attaché to Russia and Ukraine.
Laaneots was promoted to major general in 1998.
Defence Minister, New Army Commander Pledge Cooperation
Dec 5 - The newly appointed commander of the Estonian defence forces, Maj. Gen. Ants Laaneots, and Defence Minister Jürgen Ligi are confident that there will be good cooperation between the civilian control and military aspects of the defence.
Speaking at a press conference, Ligi said that with the appointment of Laaneots the basis was created for a substantial improvement in the relationship between the Defence Ministry and the General Staff.
Laaneots said that from the point of view of national defence, a standoff between the Defence Ministry and the General Staff is not permissible.
An in-depth discussion is needed as regards the functions of the two institutions, as now many of the functions overlap, he said.
Laaneots said he agrees with the opinion that military competence is definitely needed in the Defence Ministry and people with political competence are needed in the General Staff.
Ligi said Laaneots did not oppose the idea that the General Staff and the Defence Ministry could be merged some time in the future.
Speaking about possible changes in the General Staff, Laaneots said he had no plans to "purge" anyone. Officers are in short supply and every officer has the weight of gold, he said.
"We have to check out who is suited for what job. Whom we're going to shift and where is a technical matter," Laaneots said.
Laaneots said the Estonian defence forces have three major tasks: contributing forces to NATO military forces, ensuring primary defence, and ensuring host nation support.
The new commander of the defence forces said that Estonia has had as much as 10 percent of its officer corps on missions abroad at one time, compared with the NATO recommendation that eight percent of the armed forces be contributed to foreign missions in time of peace.
Speaking about primary defence, Laaneots said the term does not only encompass military defence but also action in the case of a natural disaster or a threat to constitutional order. The Kaitseliit (Defence League) volunteer corps has a big role in primary defence, Laaneots said.
Also important is host nation support capability, as it has to be taken into consideration that Estonia is a border state of NATO and has an unfriendly neighbour, to put it mildly, Laaneots said. Estonia will need the help of allies in case something happens, and for that host nation support capability is important, he added.
Estonia to Buy Air Defence System from MBDA Concern
Dec 1 - Estonia will to buy a short-range air defence missile system from the MBDA Missile Systems group, whose products include the Mistral missiles.
The government has authorized the Defence Ministry to start negotiations over the air defence contract with the MBDA France company jointly with SAAB Microwave Systems, whose tender emerged as the winner according to the report of the tender commission.
"We are for the first time going to procure a modern air defence capacity – a mobile radar, communications and missile system. This is in our situation an effective deterrent to attackers and defence for the future infantry brigade," Defence Minister Jürgen Ligi said.
The defence forces development plan up to 2010 calls for spending 700 million kroons (€44.73m) on the air defence procurement but added that the exact cost of the system will be established at talks.
The aim of the procurement tender is to provide Estonia with a modern and mobile air defence system which can be integrated into the allied forces' united air defence system if necessary.
The system, consisting of missile, communications, and command and control systems and radars, will provide air defence capability to an infantry brigade and is meant primarily for fending off an enemy's combat helicopters and attack aircraft.
The system must also allow strategic assets such as airports, ports and government buildings to be protected, and must also provide security during important events.
The air defence system is to be delivered in 2007-08 and be fully operational by 2009. The procurement involves primary training.
The Mistral systems manufactured by MBDA Missile Systems are used also by Austria, Belgium, Cyprus, Finland, France, Hungary and Spain.
The government announced the tender in August 2005. The Defence Ministry invited tenders from two companies: the US Raytheon Company which manufactures the Stinger missiles, and MBDA Missile Systems.
The air defence system tender is one of the two largest defence procurements of the last 10 years. The other is the replacement of the Navy's mine hunting vessels which will cost 800 million kroons.
Govt Proposes to Extend Iraq Mission by Up to One Year
Dec 4 - The Estonian government submitted to the parliament a bill that would extend the mission of Estonian military personnel in Iraq by up to one year.
Under the bill, the period for using Estonian units in the fulfilment of international commitments in a post-conflict mission in Kuwait, Qatar, Bahrain and Iraq would be extended by one year starting from Jan. 1, 2007, when the current parliamentary mandate expires.
According to the cover letter to the bill, participation in the mission is directly linked to Estonia's security interests.
The parliament previously at the end of December 2005 extended the mandate of Estonian military to be part of the Iraq force until the end of this year. The Estonian contingent there can comprise up to 40 personnel.
Estonia has taken part in the mission in Iraq since June 2003. Two Estonian soldiers have been killed during the operation and 19 have sustained injuries, two of them serious ones.
Estonia Rotating Unit in Iraq
Dec 4 - The ESTPLA-14 light infantry platoon of the Estonian defence forces departed for Iraq to replace ESTPLA-13, which has served there for the last six months.
The chief of staff of the Estonian defence forces, Brig. Gen. Alar Laneman, stressed in his remarks at the departure ceremony at Tallinn Airport that the mission is a very big responsibility to the Estonian people, the defence forces and the unit itself.
"Our goal is that the Iraqis could go to school, to the market and the mosque in peace. Bringing peace and stability to these people is in your hands," Laneman said.
Speeches were made at the ceremony also by US Ambassador Aldona Wos and chief of the ground forces staff Lt. Col. Indrek Sirel.
The 34-strong light infantry unit led by 2nd Lt. Ranno Raudsik has been trained to man foot and motorized patrols, conduct searches, escort convoys and guard sites.
The Estonian military will carry out operations in Iraq jointly with US and other coalition troops as well as the Iraqi security forces.
DOMESTIC NEWS
President Announces General Elections
Nov 30 - Estonian President Toomas Hendrik Ilves signed a resolution announcing elections of the 11th parliament on March 4, 2007.
The president said in a statement on the public Eesti Televisioon before announcing the elections that he is making the announcement in a situation where the actions of both governing coalition and opposition parties increasingly exude temporizing indecision and conflict. A situation has arisen where party gains have started smothering national interests, he added.
Voters will actually have to make a "very simple decision" in spring, Ilves said.
"Is this a transaction or a contract? In a transaction, you may receive a concrete thing for your vote. For instance, a higher salary or a one-time subsidy," he said, warning against misleading conceptions.
According to Ilves, people also should ask why citizens' trust in the rule of law has become shaky and why the meaning of laws is distorted behind the shield of legal correctness.
"Why do some of our businesspeople knowingly disregard the law and proper behavioural practices, while still enjoying the patronage of politicians? Why is the political debate rampant with language that prompts us to cover our children’s ears when we hear it?"
The president also called on candidates to observe good practices of fair campaigning and refrain from denigrating their rivals.
Estonian SDP Adopts Election Platform
Dec 2 - A congress of the Estonian Social Democratic Party gave the final seal of approval to the party's platform for the March 2007 parliamentary elections.
Peeter Kreitzberg, who chaired the program committee, told the congress that the cost of the SDP program is billions of kroons of extra funds compared with the current budget, spokespeople for the party said.
"If our economy continues growing at a rate of 5 to 8 percent in the coming years, budget revenues will automatically increase more than our program requires," Kreitzberg underscored.
The overall aim of the party's platform is to transform Estonia into one of the best-educated, healthiest and most honest nations. The ruling Reform Party has declared similar goals ahead of the elections.
"The prosperity targeted by us and the Reform Party is comparable but distributed among people in a totally different way," Kreitzberg said. In his words, the well-being the SDP is striving for is directed at the survival of the nation, togetherness, caring, quality public services, and rule of law.
In the Social Democrats' vision, the state has to be a good master, he added.
Estonian Centre Party Rating Falling
Nov 30 - According to an Emor poll the popularity of the Centre Party among electors continued to fall in November, while the Reform Party has consolidated its leading position.
The Centre Party had 17 percent of supporters among the electors in November; in October the rating of the party was 19 percent and in September 20 percent.
The Reform Party, which passed Centre’s rating in October, was supported by a stable 20 percent of those interviewed in November.
Govt Approved Amendments to Penal Code
Nov 30 - The Estonian government approved a bill of amendments to the penal code which makes public display of Soviet and Nazi symbols in public punishable if it is done for the purpose of inciting hatred.
The bill approved by the Estonian government makes it clear that public display and dissemination of symbols of occupying regimes connected with fanning hatred is punishable. The present wording of the provision is not precise and is open to different interpretations.
The draft law covers official symbols or easily recognizable parts thereof of the former Soviet Union, Soviet republics, the National Socialist Party of Germany, and SS security force. The Nazi Party and SS are listed explicitly.
The bill concerns also historical banners, coats of arms, and other official symbols if they are identifiable or are represented partially but are easily recognized.
The bill requires endorsement by the legislature.
Tallinn Remains Main Goal of Internal Migration
Nov 30 - In the years 2000-2005 the main goal of internal migration in Estonia continued to be Tallinn and its vicinity, out-migration being the highest in towns in Ida-Viru County, the Statistical Office reported.
Movement to Tallinn and local government units of its hinterland dominated in the internal migration in Estonia.
The metropolitan Harju County received more residents from every other county than it lost, and for all other counties Harju County simultaneously served as the main migration target.
Another important area whose sphere of influence reached considerably farther than its boundaries was Tartu County.
The sphere of influence of Pärnu was smaller to areas situated farther away from the county and due to a large negative migration balance with Harju County, the population of Pärnu County declined.
In absolute terms, Ida-Viru County was the area where the population fell the most due to migration, losing people to all other counties.
In migration within county limits, suburbanization was evident in the Tartu, Pärnu and Ida-Viru counties, but in many rural communities situated close to county centres population growth was low or negative.
Trends in internal migration can be analyzed on the basis of the population registry data. But we know that it does not adequately reflect migration with the result that actual migration, particularly emigration, is not accurately reflected.
The Statistical Office said the quality of migration data could be improved if personalized data of the 2000 census were available to statisticians.
"Unfortunately they are closed to specialists due to legal obstructions and inaccurate sources have to be used in the assessment of migration trends," the Statistical Office said.
Seven Pct of Estonians Planning to Move to Another EU Country
Nov 30 - Nearly 7 percent of Estonians are planning to move to another EU member country in the next five years, a mobility report of the European Foundation for the Improvement of Living and Working Conditions revealed.
People in the 24-35 and 18-24 age groups, students and those with secondary or higher education think the most frequently about moving. Of the residents of EU member countries considering moving, 59 percent said the reason for moving was the wish to have a higher income, while 57 want better working conditions and 30 percent wish to experience something new.
In old member countries the justifications were more frequently connected with lifestyles, 64 percent want to discover new environments, 39 percent to meet with new people and a quarter of the people to live in a better climate.
Although it is residents of the new member countries that more frequently consider change of the country of residence, no mass emigration is taking place in Europe. In all only 3 percent of EU citizens believed they could move to some other member country. Only four percent of European citizens have changed their residence within the European Union and fewer than 3 percent have moved to countries outside the European Union.
Of all the respondents, 62 percent found that mobility contributed to integration in Europe. Mobility of the population is also being seen as having a positive effect on the labour market, the economy and for the individual.
The report of the European Foundation for the Improvement of Living and Working Conditions analyses mobility between and in EU countries on the basis of a Eurobarometer poll carried out in the second half of last year.
ECONOMIC NEWS
President: Estlink is Estonia's Energy Window to Europe
Dec 4 - Estonian President Toomas Hendrik Ilves has described the opening of the Estlink undersea cable between Estonia and Finland as an event marking the creation of an energy window for Estonia into Europe.
Upon his return from the inauguration of the power link at the Harku converter station near Tallinn, Ilves said the day of the launch of Estlink was a historic day when Estonia acquired yet another link with Europe. \
"This is an energy window to Europe and an important day for us, since from now on, we are no longer closely tied to our past in such a contemporary security field, as energy security," the president said.
"Guaranteeing our energy security does not stop with this step, rather it is just the beginning, but we have taken a giant step forward," he said.
Referring to cooperation within the framework of the Estlink project between Finland, Latvia, Lithuania and Estonia, the Estonian leader said it is namely this kind of cooperation that is needed in the European Union, particularly in the Baltic Sea region.
"The Estlink project has created an excellent basis to continue energy-related cooperation with our close partners," he said.
As the president said, energy security is and will remain one of the most important security topics in discussions worldwide, but especially in Europe.
"The winners will be those who are able to cooperate in guaranteeing their energy-related security and to create the necessary preconditions for this cooperation—trust.," Ilves said.
The Estlink cable was inaugurated on Dec 4 ceremonies at the converter stations of Harku on the Estonian side and Espoo, Finland. The 105-kilometer, 350-megawatt power link consisting of two parallel cables sets up the first ever connection between the Baltic and Nordic power grids, and its primary purpose is to supply electric energy generated in the Baltics to the Nordic market.
In addition, the cable is seen as important for security of supply.
"The existence of Estlink allows us to cope easier also when our cooperation with the Russian electricity system is interrupted," Economy Minister Edgar Savisaar said in his remarks at the inauguration.
The parties to the Estlink project are the Baltic power companies Eesti Energia, Latvenergo and Lietuvos Energija, as well as Pohjolan Voima and Helsingin Energia of Finland.
The project cost 110 million euros.
Estonian Economy Grows by 11.6 Percent in Q3
Dec 4 - According to a preliminary estimate by the Estonian Statistical Office, growth in the gross domestic product (GDP) in Q3 was by 11.6 percent against the same period last year.
Fast growth in wholesale and retail trade influenced the economic growth the most. Also a rise in the manufacturing industry, transport and warehousing and construction considerably contributed to the growth. In addition to the companies sector, financial institutions also had an important part in the economic growth, the Statistical Office said.
The Statistical Office will publish the growth figure of the gross domestic produce calculated according to the complex method on December 29.
In Q1 this year the economic growth was by 11.7 percent and in Q2 also by 11.7 percent.
Estonia's October Industrial Output Up 7 Pct on Year
Nov 30 - Industrial production in Estonia in October grew 7 percent in comparison with October 2005, the Statistical Office said.
Compared to September, seasonally adjusted industrial production in Estonia increased 2 percent. Output in manufacturing increased 1 percent in the monthly comparison and 10 percent year-on-year.
The manufacturing sector received a strong boost from the almost 12 percent increase in the production of food, which mostly was the result of an increase in the production of beverages and dairy products. Both sales to the domestic market as well as exports increased.
The production of wood, metal products and building materials also contributed largely to the increase of manufacturing output. In the case of metal products the growth was mainly influenced by an increase of exports. Building materials on the other hand were produced mainly for the domestic market.
The manufacture of electrical machinery and equipment was another factor behind the increase, showing an expanding share of domestic sales beside the traditionally dominant manufacture for export.
No Big Threats to Financial Stability - Bank of Estonia
Nov 28 - Estonia's economic growth is about to slow down to a moderate seven or eight percent over the next two years and thus there are no remarkable problems in sight for financial stability, the central bank said.
During a joint meeting of the council of the Bank of Estonia and the council of the Financial Supervision Authority members of the two councils got familiar with the regular financial stability survey by Eesti Pank as well as a survey by the Financial Supervision Authority about developments in the financial sector and supervisory cooperation.
Over the past six months the condition of the Estonian financial sector has remained good, it appears from the survey.
The banking sector's capitalization and liquidity are on a level that is suitable for the given economic environment and short-term risks of the banking sector are well managed with the support of parent banks.
It remains true that at the current peak of economic growth, both loan takers as well as loan givers should review their optimistic outlooks so that their saving, investment and borrowing decisions would correspond to the demands and risks of the oncoming economic cycle, Eesti Pank said in its survey.
The financial stability survey will be presented to the public by Eesti Pank together with a regular quarterly commentary on Dec. 13.
Agreement on Financial Crisis Management Signed
Dec 5 - The governor of Eesti Pank Andres Lipstok, the CEO of the Financial Supervision Authority Raul Malmstein, and Finance Minister Aivar Sõerd signed an agreement on cooperation in financial crisis management.
"Although a crisis jeopardizing the entire financial system is a rare occurrence, it is essential in solving any crisis to have in place a previously agreed-upon framework of action on whose basis the institutions solving the crisis can work," the central bank said.
The agreement underscores the primary responsibility of a bank's owners and management to bolster the bank's financial strength and shoulder the losses caused by a crisis. State liquidity or capital support is offered only in the event that private-sector solutions do not work or turn out to be insufficient.
"Beside a national cooperation network, cross border cooperation is essential. In addition to the cooperation agreement concluded today, presidents of the Swedish, Estonian, Latvian and Lithuanian central banks are going to sign on Dec. 18 an agreement on joint management of financial crises," Lipstok said.
IMF: Estonia Could Have Executed Excise Hikes This Year
Nov 30 - Estonia would have stood a chance of meeting the convergence criteria for adoption of the euro currency at the end of 2008 if the planned excise increases were carried out still within this year, the International Monetary Fund finds.
The IMF said in its latest report on Article IV consultation with Estonia that the timing of planned excise increases, some of which are covered by commitments to the EU, is another instrument beside fiscal policy to tackle convergence. Earlier this year one set of increases was postponed from July 2006 to January 2008 in order to improve the chances of meeting the Maastricht criterion in 2007, IMF observed.
IMF noted that "in view of new, higher, inflation projections, a case could now be made for making these increases in late 2006 -- the effect of inflation would then peak in late 2007 when the Maastricht target would be, in any event, out of reach."
The Estonian government did not opt for such move, referring to the coalition agreement and the best practice requirement that any tax increases be announced at least six months in advance.
Estonia could meet the inflation criterion at the end of 2008 also if the excise increases currently slated for January 2008 were postponed once again, the IMF said.
The IMF said in its conclusions that some delay in euro adoption would be easily manageable, as has been shown by markets' unruffled response to a perceived two or three year postponement, but a longer or open-ended delay should be avoided.
In its recently completed revised plan for euro adoption, the Estonian government no longer sets any specific deadline for euro adoption, as against the backdrop of volatile price developments it is difficult to forecast the speed of inflation in a reliable manner for more than a couple of years in advance.
"Therefore it is not possible to precisely evaluate at this point when Estonia could meet the price stability criterion and become a full member of the euro zone," it stands in Estonia's new convergence program for the period until 2010, which was expected to be taken under discussion in the government on Nov 30.
Estonia continues to meet all the criteria save for the price stability criterion for adopting the euro currency.
ECB: Estonia Must Implement Tight Fiscal Policies
Dec 5 - Estonia needs to implement adequately tightened fiscal policies to offset demand-induced inflationary pressures and achieve sustainable convergence, the European Central Bank said in its latest convergence report.
According to the report Estonia also needs to monitor closely the current credit growth fuelling household consumption and current account deficit as they may indicate the risk of overheating.
The ECB stresses also the importance of labour market flexibility and moderate wage increases.
The convergence report analyzes the correspondence of national economies to the euro adoption requirements or Maastricht criteria and countries' legal frameworks. Besides Estonia, euro readiness of eight more European Union member states is reviewed.
In order to meet the inflation criterion, annual growth in Estonian consumer prices should not have exceeded 2.8 percent but actual growth in the review period was 4.3 percent.
As regards fiscal policy, the ECB observed that in 2005 Estonia achieved a fiscal surplus of 2.3 percent of gross domestic product, well below the reference value.
In addition to Estonia, also Latvia and Sweden had fiscal surpluses whereas six countries under review had budget deficits. Estonia's government debt-to-GDP ratio dropped to 4.5 percent in 2005 and is forecast to decline further, to 4 percent, in 2006, thus remaining far below the 60 percent reference value.
The convergence reports are drawn up every other year as a rule to assess EU countries' economic policy and legislative convergence on the euro zone on the basis of the Maastricht criteria.
Going by the reports, the EU's executive Commission makes proposals to ECOFIN and the European Council on which member states are ready to adopt the single currency.
PM: Careful Consideration Must Be Given to Poland's Entry into Nuclear Plant Project
Nov 30 - Possible participation by Poland in the Baltic nuclear plant project has to be carefully weighed, Estonian Prime Minister Andrus Ansip said.
If we take construction of the new nuclear plant as a business project, Poland's taking part in it would make the investment pay back sooner, the Estonian head of government said.
The accession of Poland also would ensure that power transmission lines between Poland and Lithuania are built faster, which would provide Estonia access to the European energy system in addition to the Estlink power cable that will connect it with the Nordic region, he said.
"Estonia would no longer be a lonely island in terms of energy supply, and the energy security of this region would increase," Ansip said.
At the same time, the prime minister said that in the event of Poland's joining the project it would no longer be guaranteed that Estonia will get as much electricity from the new power plant as it wants.
As Ansip said, Estonia cannot take the building of the new nuclear plant in Lithuania merely as a business project that must bring dividends, but it's also a part of its energy security and an alternative to Estonia's oil shale based energy sector.
The idea that Poland could be invited to join the project was presented to Estonian officials earlier this week by Lithuanian Ambassador Juozas Bernatonis. Ansip said the decision would be made on the basis of consensus, which means that even if one of the participants in the project is against taking in Poland no invitation will be made.
Skype to Open Development Centre in Prague Operated from Estonia
Dec 5 - The Internet communications company Skype will in the first quarter of 2007 open a development centre in the Czech capital Prague which expects to hire almost 30 specialists in a year; the centre will be operated from Estonia.
Skype's principal development centre with nearly 300 employees as well as the overall management of development work will remain in Estonia, the head of the firm's Estonian office, Sten Tamkivi, said. "The Prague office will provide our development engine with the necessary extra cylinder," he said.
The launch of the Prague office is directed by Ott Kaukver, head of software development at Skype. In his words, roughly 10 central and eastern European countries were under consideration as locations of the additional development unit.
"We decided in favour of the Czech Republic because of the good educational system and quality workforce. The favourable location and flexible labour policy also make Prague an attractive destination for mobile labour throughout Europe," Kaukver said.
Skype is internationally known Internet communications software enabling users to make voice and video calls. The software which has more than 136 million users is available in 28 languages and used in almost all countries of the world.
Estonian Lender BIG Starts Offering SMS Loans
Dec 5 - Baltic Investment Group Bank (BIG), a small Estonian bank specializing in consumption loans, has similarly to several newcomers in the lending market started offering small SMS loans not requiring any collateral.
The firm has set the target at conquering a 60 percent slice of the market in six months, CEO Targo Raus said. It is estimated that currently five million kroons' worth of loans is issued by SMS in Estonia in a month.
BIG issues loans in the sum of 1,000, 2,000 and 3,000 kroons. The borrower can choose the term of payment which ranges from 15 to 60 days. The credit carries no interest but a contractual fee is payable.
A loan of 1,000 kroons (€64) for a period of 15 days, for instance, costs 170 kroons.
Quarterly Earnings of Estonia's Saku Brewery Up 42 Pct on Year
Nov 29 - The Estonian beverage house Saku Õlletehas (Saku Brewery) earned a net profit of 62.7 million kroons (€4.0m) in the third quarter of 2006, an increase of 42 percent over the same quarter a year ago.
Sales revenue in the third quarter came to 245 million kroons, marking a 26 percent improvement on the same three-month period in 2005.
Saku posted a nine-month net profit of 97.6 million kroons, a 54 percent increase over last year. Net earnings per share stood at 12.21 kroons.
"The striking 48 percent annual increase in our operating profit is the largest ever. In fact, compared to the period two years ago, Saku Õlletehase AS operating profit has doubled. The exceptionally strong revenue growth results from appropriate changes in the product range, where focus has shifted towards the premium category, and the discontinuance of the production and distribution of less profitable beverages," said the chairman of the management Board of Saku Õlletehas, Ireneusz Smaga.
The volume of sales by Saku in the nine months totalled 70 million litres, up 12 percent in comparison with the same period a year ago.
Estonian Shirt Maker Sangar Has Subcontractor in Belarus, Eyes Russia
Nov 29 - In addition to having subcontracted a significant part of its production to a plant in Belarus, the Estonian garment company Sangar is planning to set up production capacities in the Pskov area of Russia near the Russian-Estonian border.
CEO Gunnar Kraft said that right now subcontracting operations for Sangar are performed by a plant with 1,300 workers in the Belarusian city of Dzerzhinsk.
"We would like to acquire a production facility fully controlled by ourselves in the Pskov area, starting with one or two production lines if necessary," Kraft said.
Apart from the Belarus plant, subcontractors for Sangar also work in north-eastern Estonia and Lithuania.
"If a year ago 10 percent of our output was manufactured outside our own facilities, then now the percentage is more than 30," Kraft said.
Last year Sangar stopped manufacturing leisure wear, focusing completely on men's shirts.
The company that exports most of its output posted a net profit of 3.1 million kroons (€198,000) for 2005.
Construction in Estonia Grows By One-Fifth on Year
Nov 29 - Total production by Estonian construction enterprises in Estonia and in foreign countries in the third quarter of this year grew 21 percent over the same three-month period a year ago, the Statistical Office said.
The production value of production by construction enterprises in the third quarter amounted to 9.7 billion kroons (€620m). The production value of building construction was 5.9 billion kroons while the production value of civil engineering came to 3.8 billion kroons, marking increases of respectively 15 percent and 33 percent over the third quarter of 2005.
Output by Estonian construction companies grew in Estonia as well as in foreign countries.
In the domestic construction market the growth mainly originated from an increase in building construction, being also supported by civil engineering. The growth of construction production in foreign countries was the result mainly of an increase in civil engineering construction.
The production value of construction enterprises operating in foreign countries increased by a half compared with the same period a year ago, amounting to 405 million kroons.
GE Money Planning to Expand to Estonia
Nov 29 - GE Money, the consumer lending and vehicle finance arm of General Electric, wishes to enter the Estonian market.
"At one moment we're definitely going to be in Estonia, yet I can't offer any exact timeline now," the manager of the Latvian subsidiary of GE Money, Dimitri Tsymber, said.
Of the Baltic States, GE Money is active only in Latvia right now. The company has 35 offices there and recently it bought a small Latvian bank, Baltic Trust Bank.
"We might start from scratch in Estonia, but likewise we might buy someone," the manager at GE Money in charge of the Nordic region, Niles Aall, said. "We're surveying the market now," he added.
GE Money is a subsidiary of General Electric.
Elcoteq Takes Victory in Estonian Management Quality Award Competition
Dec 1 - Elcoteq Tallinn has been declared winner of the Estonian Management Quality Award Competition of 2006 among large companies, whereas in the category of medium and small-size companies and public sector organizations no winner was named.
"The Management Quality Award certainly supports us in the direction we have taken to bring to Tallinn in the coming years namely the manufacture of more complex products with greater added-value," the director general of Elcoteq, Risto Gaggl, said.
Elcoteq Tallinn is a subsidiary of the Finnish electronics manufacturing company Elcoteq.
In addition to picking the winner, the competition for the first time this year recognized organizations which have made significant progress in improving management quality.
The award for excellence in organizational management went to Olympic Casino Eesti and the Estonian Health Insurance Fund.
The winners of the Well Managed Organization award were the Eesti Energia subsidiary Põhivõrk (Main Network), the construction company Celander Ehitus, SOL Eesti and Estonian Television.
There were nine organizations in three categories competing for the Management Quality Award this year.
The competition is organized by the Ministry of Economy and Communications, Enterprise Estonia (EAS) and the Estonian Association for Quality.
The Management Quality Award series of competitions began in Estonia in 2001.
MISCELLANEOUS
Estonian Capital Guest of Honour of Brussels Christmas Market
Dec 2 - The Estonian capital city of Tallinn is participating as a guest of honour in the annual Christmas Market of Brussels.
The traditional Brussels Christmas Market opened on Dec 1 with a festive procession. Tallinn is this year taking part in the event as guest of honour, with stalls selling products characteristic of the city and distributing information about Tallinn and Estonia as a whole. Great interest in the Tallinn display on Place St. Catherine was evident already on the first day of the market.
Mayor Jüri Ratas, who attended the opening ceremony, said he is very pleased with Tallinn having been invited to the market as a guest of honour.
"We are represented here in a worthy manner, our representation has an excellently arranged display and many messages to the world. Tallinn's display at the Brussels Christmas Market earned praise also from Brussels Mayor Freddy Thielemans," Ratas said.
The Christmas Market offers an excellent opportunity to promote Tallinn and all of Estonia as a travel destination and tout the city in its bid for Cultural Capital of Europe 2011, the mayor observed.
The stalls of Tallinn on St. Catherine square were designed by the head designer of the Tallinn Linnateater, Iir Hermeliin.
The Brussels Christmas Market is open for one month.
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