Estonian Review

EESTI RINGVAADE             Volume 14 No 38-39 September 20-October 3, 2004

 

ISSN 1023-1951

 

TOP NEWS

 

Estonia's Laar and Ilves sign letter expressing concern about Russian democracy

Sep 29 - Former Estonian Prime Minister Mart Laar and MEP Toomas Hendrik Ilves have joined an open letter by one hundred politicians and intellectuals, which voices concern about the fate of democracy in Russia.

The letter dated 28 September and addressed to the heads of government of European Union and NATO member states says that the Russian leadership is moving away from the democratic values of the Euro-Atlantic community.

"Russia's democratic institutions have always been weak and fragile," the letter says, adding that since becoming president in January 2000 Vladimir Putin has weakened them.

The signatories say the foreign policy of Vladimir Putin is to an increasing degree characterized by a threatening attitude toward Russia's neighbours and the energy security on Europe.

The signatories find that the West's strategy for Russia failing and it should be reviewed. The West's policies have been unable to create the kind of democratic Russia that was wished and that the people of that country have deserved after all the suffering that has befallen them, the letter says.

"We wish to help Russia with this letter," Mart Laar said. Laar said the letter also should help make the West better aware of what is going on in Russia.

MEP Toomas Hendrik Ilves, former Estonian Foreign Minister, said that a reversal of democratic development had started in Russia and the West was often turning a blind eye to this. Ilves, also said the EU was lacking a common policy vis-a-vis Russia.

Ilves underscored that the signatories of the letter came from all parts of the political spectrum, from the left and the right, and included French and Americans alike.

The signatories of the letter include former U.S. Secretary of State Madeleine Albright, well-known British publicist Timothy Garton Ash, representative of the Marshall Foundation in Germany Ronald D. Asmus, former Swedish Prime Minister Carl Bildt, philosopher Francis Fukuyama, former Czech President Vaclav Havel, former U.S. Ambassador to the UN Richard C. Holbrooke, political scientist Robert Kagan and former Lithuanian President Vytautas Landsbergis. 

 

Estonians support for EU grows to record 70 per cent

Oct 01 - Estonian citizens support for the European Union was at 70 per cent in September the highest since 2001.

According to the Emor survey commissioned by the State Chancellery 25 per cent of election-age Estonian citizens were against the EU and 5 per cent had no opinion in the issue.

Support for the European Union has been growing gradually since this May. In May, support for the EU was at 61 per cent, 62 per cent in June, 64 per cent in July and 67 percent in August.

Emor said that the firm growth in the European Union's rating could be because people were becoming accustomed to the fact that Estonia actually belongs to the European Union and that eventually many of the fears they had had before accession had turned out to be groundless.

"None of the radical changes they expected have taken place. Rather, most people do not notice any changes at all in their everyday lives. This does not mean the rating will remain at such a high level, because the figures have always depended on how the European Union is reflected in the media," Emor sociologists said.

 

Estonian PM: EU should have common policy vis-a-vis Russia

Sep 21 - After meeting with Finnish Prime Minister Matti Vanhanen, Estonia Prime Minister Juhan Parts said that the European Union should be guided more by a common policy vis-a-vis Russia and should be able to say no to Russia when necessary.

"The European Union should act as a united body vis-a-vis Russia," Parts said answering questions at a press conference. Parts said that Russia is and will remain a partner for the European Union. At the same time the EU should not be afraid to say no to Russia. Parts underlined that strategic partnership is the most significant keyword in relations with Russia instead of underlining differences.

Finnish Prime Minister Matti Vanhanen said that Finland would certainly continue promoting co-operation with Russia both via EU programmes and bilateral relations.

The Estonian and Finnish Prime Ministers discussed issues of EU enlargement and the EU constitutional treaty, relations between the EU and Russia as well as bilateral relations between the two countries, including co-operation in the environmental sphere, co-operation between law and order bodies, technology and science policy councils and support to Finno-Ugric peoples

 

FOREIGN NEWS

 

Estonian, Polish PMs expect more united Russia policy from EU

Sep 29 - Estonian Prime Minister Juhan Parts and his Polish counterpart Marek Belka at a meeting in the Polish capital said they expected the European Union to pursue a common policy vis-a-vis Russia.

The heads of government found that the large EU members should co-ordinate their Russia policy with other EU members and with the Commission more than they are doing now.

Speaking about the EU's new neighbours policy, Belka said relations between the EU and Ukraine were of utmost importance for Poland. Noting that relations with Ukraine were important for Estonia too, Parts underscored the importance of Georgia and the entire South Caucasus.

The Prime Ministers stated that relations between Estonia and Poland were very good. In this context they expressed surprise that the last visit by an Estonian head of government to Warsaw took place more than 70 years ago.

Speaking at a press conference after the meeting, Belka said tax policy had to be something that every member state could decide itself. The Polish Prime Minister backed the stance that linking the size of corporate income tax to structural funds was not acceptable because these were two entirely different things.

 

Britain to provide air cover over the Baltic States for the next six months

Sep 29 - Six NATO countries have committed themselves to providing permanent air cover over the Atlantic alliance's three Baltic members until 2006.

Britain has agreed to take the first six-month slot from October, followed by Norway, the Netherlands, Germany, the United States and Poland.

Currently Denmark is providing air surveillance over the skies of Lithuania, Latvia and Estonia, which joined the alliance in March and which do not have their own fighter jets.

 

Finland values Estonia's role in shaping EU neighbourhood policy

Sep 21 - Finnish Prime Minister Matti Vanhanen, on a visit to Estonia, said meeting with Chairman of the Riigikogu Ene Ergma that Estonia as a new member country of the European Union (EU) has an important role in shaping the EU neighbourhood policy.

"I am convinced that Estonia has the necessary contacts, knowledge and practical experience of relations with the European Union's eastern neighbours. This is knowledge that is certainly needed in working out the neighbourhood policy in Brussels," Vanhanen said.

Ergma underlined that Estonia is very much interested in supporting the development of democracy in Ukraine and in the Caucasus region. As an independent issue, the need to revise the financing mechanism of implementing the new EU neighbourhood policy was raised. During the meeting Ergma and Vanhanen also discussed issues of budgetary policy and dwelt on problems of EU agricultural subsidies.

 

Estonian PM attacks France on corporate tax stance

Sep 30 - Estonian Prime Minister Juhan Parts has sharply attacked France for its ongoing pressure on new EU member states to increase their corporate tax rates.

Speaking before the College of Europe in Warsaw, Parts rebuked French Finance Minister Nicolas Sarkozy, who said earlier this month that new EU countries with low tax rates such as Estonia should lose their EU regional funding.

Parts characterized the French finance minister's comments as "not according to European values" and "really bad." He went on to say that the debate on harmonization of tax levels at a EU-wide minimum level was "demagogic."

The Premier directly challenged fears that companies may shift their investments from the 'old' to the new member states. "Companies are always looking for the best opportunities. I would say that it is better that they stay in the EU than move to Asia", he stated.

He added that it is wrong to believe that new member states are too poor to afford low tax rates. "Business-friendly tax rates produce more growth and thus more revenues for the public sector," he said.

According to Parts, harmonization of tax levels in the EU would even undermine national democracy. "If national governments cannot even decide over taxes anymore, citizens will start to question what is the point of going to vote in elections," he said.

Parts stressed that the success of the so-called Lisbon agenda -- the EU's goal to become the most competitive economy by 2010 -- would depend on the ability of the member states to make many painful decisions. "Europe needs more competition and less state intervention," he stated.

 

Memorial to Baltic boat refugees unveiled in Sweden

Sep 25 - A memorial to WWII boat refugees from the Baltic States was unveiled in the Swedish capital Stockholm.

The memorial honours those who managed to reach dry land and freedom, and commemorates those who perished in the waves of the Baltic Sea in their small boats, a representative of the Haninge-Haapsalu friendship society said.

The monument "Departure and Homecoming," erected at the initiative of the friendship society uniting the Haninge commune south of Stockholm and the town of Haapsalu in western Estonia and the Haninge municipality, was created by Ursula Schutz.

 

The President of the Republic attended the opening of the UN General Assembly 59th Session

Sep 22 - President Arnold Rüütel attended the opening of the 59th Session of the UN General Assembly in New York.

The President of the Republic signed the Optional Protocol to the Convention against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment. This protocol has been done in order to foster the implementation of the goals established by this international Convention, which in Estonia came into force in 1991 and, for now, has been joined by 136 countries. Since 2001, Estonia has submitted to the committee set up under the Convention periodical reports on the fulfilment of its commitments.

President Rüütel also attended a luncheon for heads of state hosted by UN Secretary-General Kofi Annan. During a conversation, that took place at the luncheon, he talked with the Secretary-General about how quickly Estonia had evolved from a recipient into a donor country, and also discussed the global problems being debated in the current session of the General Assembly.

Foreign Minister Kristiina Ojuland joined President Rüütel at the General Assembly. The Network of Women Ministers of Foreign Affairs elected Foreign Minister Ojuland and her Swedish colleague Laila Freivalds as co-Presidents. Ojuland and Freivalds were asked to organize the next meeting of the Network of Women Ministers of Foreign Affairs in Geneva next spring. There are fourteen women foreign ministers in the world at the moment.

 

Estonia, Macedonia sign defence co-operation pact

Sep 27 – The Estonian and Macedonian Ministries of Defence signed an agreement on collaboration in the sphere of defence in Skopje, paving the way for future bilateral co-operation.

To date, Estonia has signed bilateral defence co-operation agreements with 25 states.

The Estonian and Macedonian delegations discussed NATO integration, participation in international operations, defence reforms and regional co-operation. Regional co-operation can be considered a key area where

Estonia has valuable experience to share with the Balkans state.

 

Estonian Ambassador presents credentials to King of Spain

Sep 21 - Estonian Ambassador to Spain Andres Rundu handed over his credentials to King Juan Carlos I of Spain.

During the conversation after the ceremony King Juan Carlos I credited Estonia for the reforms that led the country to membership in the European Union (EU) and NATO. The Ambassador thanked Spain for its support to Estonia's aspirations to become a member both in the EU and NATO.

 

Estonian Ambassador to Sweden hands over credentials

Sep 23 - Estonian Ambassador to Sweden Jüri Kahn presented his credentials to King Carl XVI Gustaf.

During the conversation after the ceremony the Ambassador and the King discussed the co-operation of the two countries, as well as Estonia's new duties and challenges due to EU membership status.

 

Estonian Ambassador presents credentials in Cyprus

Sep 30 - The Estonian Ambassador to Cyprus, Andres Unga presented his credentials to Cypriot President Tassos Papodopoulus.

During the conversation that followed, the President and the Ambassador spoke about the new challenges awaiting the countries as members of the European Union and about the prospects of co-operation between the countries.

 

New Czech Ambassador presents credentials to Estonian President

Sep 30 - The new Czech Ambassador to Estonia Milos Lexa presented his credentials to Estonian President Arnold Rüütel.

Rüütel said that relations between Estonia and the Czech Republic have been strengthened by common priorities in foreign policy, such as membership in NATO and the European Union, as well as by common goals in the fight against terrorism.

 

Brazil opens Honorary Consulate in Estonia

Sep 21 - Brazil opened an Honorary Consulate in Tallinn. Since June, the Brazilian Honorary Consul in Estonia has been Alexander Magnus Skjorshammer, the acquisitions director of Tallink Group.

The Brazilian Honorary Consulate in Tallinn is situated at Tartu Mnt. 13. Brazil has no embassy in Estonia, and the Ambassador resides in Helsinki. Estonia has two Honorary Consulates in Brazil, one in Sao Paolo and another in Santos.

 

DOMESTIC NEWS

 

Estonian PM commemorates 1944 government by holding government session out of capital

Sep 23 – The Estonian government held its regular session in the same place were the last Estonian government before the illegal Soviet occupation held its last session.

The Prime Minister said that by holding its session in the Ridala Commune the government wanted to send a message to the people about historical facts that were not very widely known today. "It is worth remembering that the government headed by Otto Tief, which was in office for five days after the German occupation authorities left, declared Estonia's neutrality in World War II," the Prime Minister said, referring to the fact that at the time of the entry of Soviet troops Estonia had a legal government and the Soviets overthrew an Estonia government, not the authorities of a German occupation.

"We then lost the battle, but won the war on 31 August 1994," the Prime Minister said in conclusion to his comments at the memorial service. Soviet troops were withdrawn from Estonia on the basis of a bilateral Estonian-Russian treaty on 31 August 1994.

In addition to the government session, a memorial service was held followed by the laying of a wreath by Prime Minister Parts.

 

Taxes on goods and services a key source of income for Estonia in 2005

Sep 21 – According to the 2005 budget bill, almost half of Estonia's projected tax income next year (20.371 billion kroons (EUR 1.30 million) should come from the taxation of goods and services. That includes 13.738 billion kroons from VAT and 6.379 billion kroons as different excise duties.

 

Estonia: Tartu City Council appoints Laine Jänes mayor

Sep 24 - The Tartu City Council appointed Deputy Mayor Laine Jänes mayor of Estonia's second-largest city. 28 members of the council supported the appointment while seven votes went against and seven ballots were left blank.

Before Jänes' appointment, the council removed Andrus Ansip, who took up the position of Minister of Economic Affairs and Communications, from the post of mayor.

 

ECONOMIC NEWS

 

Estonia has the biggest budget surplus among EU countries

Sep 24 – According to 2003 figures, Estonia is the European Union (EU) member country with the biggest budget surplus, Eurostat reported.

The Estonian budget surplus was 3.1 per cent of the gross domestic product (GDP) in 2003. Following Estonia came Finland with 2.3 per cent.

Estonia also posted the EU's smallest government sector debt as a ratio to the GDP, 5.4 per cent. The average figure for EU25 was 63.3 per cent, 60.7 per cent in the euro zone.

 

Foreign investments into Estonia up by EUR 1 billion in Q2

Sep 27 - As of June 30 2004, foreign investments into Estonia total 189.7 billion kroons after an increase of 15.4 billion kroons (EUR 984 million) in Q2, the Bank of Estonia reported.

48.6 per cent of foreign investments were made into financial brokerage, 11.5 per cent into shipping, warehousing and communications, 10.7 per cent into the processing industry and 10.5 per cent into wholesale and retail trade.

In terms of origin, 27.7 per cent of the foreign investments came into Estonia from Sweden, 20.9 per cent from Finland and 13.7 per cent from Great Britain.

Estonian investments into foreign countries totalled 85 billion kroons by the end of Q2 2004 after an increase of 6.8 billion kroons. 85 per cent of Estonian foreign direct investments were invested into Lithuania, Latvia and Cyprus.

 

No all-out price rise in Estonia after EU membership – central bank

Sep 22 - While prices did grow at an increased rate in the second quarter of 2004, this was due to one-off factors related to the accession to the European Union. One cannot speak of a broader rise in inflationary pressure, the Bank of Estonia said.

“Accession to the European Union didn't bring with itself a general price rise in Estonia," Bank of Estonia Vice President Marten Ross said at a news conference. The spring price rise was a one-off phenomenon, which is demonstrated by the fact that a slowing down of inflation occurred in the summer. A survey by the Estonian Institute of Market Research meanwhile shows that households' inflationary expectations have decreased significantly compared with the beginning of the year, said the central bank's vice president.

The price rise in the second quarter was nevertheless bigger than anticipated, as it coincided with a significant rise in the world market prices for oil. Therefore it is likely that the annual inflation rate this year will be bigger than the estimate of 2.8 per cent published at the beginning of the year, Ross added.

 

Estonian economy grows 5.9 per cent y-o-y in Q2

Sep 28 - Estonia's gross domestic product at constant prices in the second quarter grew 5.9 per cent year on year, the Statistical Office reports.

At current prices, the second-quarter GDP totalled 35.5 billion kroons (EUR 2.27 billion) and 30.4 billion kroons in 2000 constant prices.

By spheres of activity, value added at constant prices increased year on year by 9.9 per cent in manufacturing, 5.6 per cent in the wholesale and retail trade, 8.9 per cent in transport, storage and communication, and 4.7 per cent in real estate, renting and business activities. The biggest growth at constant prices, 15.5 per cent, was recorded in construction.

 

Sales of Estonian companies up by EUR 760 million y-o-y

Sep 24 - The net sales of Estonian companies increased by 11.9 billion kroons (EUR 760 million) or 15 per cent in the second quarter of 2004 compared to the same period in 2003.

31 300 companies with nearly 398 100 employees had total net sales of 93.6 billion kroons in Q2 2004, the Statistical Office reported.

The sales of wholesale and retail companies accounted for 40 per cent, processing industry companies 22 per cent and shipping, warehousing and communication companies 14 per cent of the total net sales.

Growth in sales was the biggest in construction companies (24 per cent), public health and social maintenance companies (24 per cent) and mining companies (18 per cent).

 

Retail sales in Estonia up 14.7 per cent y-o-y in August

Sep 29 - Retail sales of goods in Estonia totalled 3.421 billion kroons (EUR 218.59 million) in August up by 438 million kroons or 14.7 per cent from the same month a year ago, the Statistical Office reports. Compared to July, retail sales dropped by 68 million kroons. In August 2003, retail sales totalled 2.983 billion kroons.

 

Estonia's foreign trade deficit rises in July

Sep 27 - The Estonian foreign trade shortfall rose in July compared to June by 700 million kroons (EUR 44.7 million) and amounted to 3.3 billion kroons.

In July the foreign trade turnover was 15.6 billion kroons of which export accounted for 6.18 billion and import 9.45 billion kroons (60 per cent), the Statistical Office reported.

 

Currency Rates in Kroons

October 3, 2004

 

British pound

GBP

22.716

Canadian dollar

CAD

9.968

Swiss franc

CHF

10.102

Danish krone

DKK

2.103

Japanese yen

JPY

0.114

Latvian lat

LVL

23.436

Lithuanian lit

LTL

4.532

Norwegian krone

NOK

1.875

Russian rouble

RUB

0.431

Swedish krona

SEK

1.732

US dollar

USD

12.594

Euro

EUR

15.647

 

 

EESTI RINGVAADE (ISSN 1023-1951)

is compiled from local news services, including BNS, and is issued by the Press and Information Department

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