EESTI RINGVAADE
Volume 14 No 38-39
September 20-October 3, 2004
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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).
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.
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.
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
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of Foreign Affairs ISLANDI
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