Estonian Review E E S T I R I N G V A A D E VOLUME 18 NO 40 OCT 15-21, 2008

FOREIGN NEWS QUOTATION OF THE WEEK European Council: Thorough Analysis of EU-Russia Relations to be Completed by Beginning of “We know already from the times of November the Silk Road... that mutually useful co- operation is only possible when we 16 October - The foreign policy leaders of the European honour one another’s traditions. [But] Union discussed the situation in and further this does not mean making developments in EU-Russia relations within the compromises at the expense of human framework of the European Council. The European Council rights and freedoms.” acknowledged that Russian forces have partially withdrawn from the zones around South Ossetia and Abkhazia in accordance with the agreements of 12 August and 8 September, and also Urmas Paet, speaking at an international declared that it’s one step taken by Russia towards fulfilling conference in Astana, international responsibilities. Foreign Minister Urmas Paet stated that currently Russia has FOREIGN NEWS only met one small part of its obligation by partially removing its troops from the areas around South Ossetia and Abkhazia. “The region of Akhalgori, which has not been a conflict region, and Kodor Valley are still occupied by Russian forces,” said Foreign Minister Paet. “We can’t say anything regarding the complete removal of Russian troops and the fulfilment of the cease-fire agreement,” Paet emphasised. In relation to the -Russia summit being held in November, the Council is calling upon both the Council of Europe and the to continue their in-depth analysis of relations between the European Union and Russia, which will be used to consider the possible continuation of negotiations for the EU-Russia framework agreement. Foreign Minister Urmas Paet confirmed that the European Council condemned Russia’s decision to recognise the Queen Elizabeth II welcomes Evelin independence of South Ossetia and Abkhazia on 1 September, Ilves and President Toomas Hendrik while it supports the implementation of the cease-fire agreement Ilves in Buckingham Palace, 17 October of 12 August. “Talks about the partnership agreement between the European Union and Russia, which are frozen in accordance President Ilves Met with Queen with an extraordinary Council decision until Russian forces return Elizabeth II to their pre-7 August positions, cannot resume yet,” said Paet. “It’s necessary to wait for the audit of European Union and 17 October - President Toomas Hendrik Russian relations, which should be ready by the November Ilves and met with Her meeting of European Union foreign ministers,” stated Foreign Majesty Queen Elizabeth II at Minister Paet. Buckingham Palace in London. At the In its conclusions, the Council reaffirmed the need to meeting, the visit of Queen Elizabeth II to strengthen the European Neighbourhood Policy’s Eastern in October of 2006 was recalled and Dimension, calling for stronger relations with Ukraine, Moldova, the long-term close ties between the United and Georgia. Urmas Paet stated that the European Kingdom and Estonia in the fields of Neighbourhood Policy is a values-based policy that is an economics and culture as well as defence co- important course for our partners implementing reforms. operation were emphasised. The Council endorsed the composition of the European Union "Estonia has excellent allied and Reflection Group that will begin working in January of next year, partnership relations with Great Britain in the in accordance with the 2007 decision of Council, with the goal of European Union and NATO," President Ilves analysing the challenges standing before the European Union in said. "Together with British forces, we are the years 2020-2030. Foreign Minister Urmas Paet believes it is participating in the global peace process in essential for the so-called ‘group of wise men’ to consider Afghanistan and Iraq, and the United probable developments within Europe and outside of Europe, Kingdom has made an invaluable analysing first and foremost how to ensure the stability and contribution to the development of our development of both the Union and the wider region in the long Defence Forces." run. President Ilves was in the Irish Prime Minister Brian Cowen gave the Council an initial to open a business seminar in Wales and overview of developments since the failure of the Lisbon Treaty meet with the presiding officer of the referendum in Ireland in June of this year. National Assembly and the first minister.

FOREIGN NEWS economic co-operation with Kazakhstan. “I see information technology and transit to and from Baltic and Nordic PMs Discuss Energy Estonian harbours as primary areas of economic co- with Barroso operation,” said Paet. “There are very good 15 October - The heads of government from the opportunities for Kazakhstani goods in Estonian Baltic states, , , Denmark, and harbours as well,” he said. and the president of the European Kazakhstani President Nazarbajev said that Commission, Jose Manuel Barroso, had a Estonian entrepreneurs are very welcome in meeting in Brussels to talk about the Baltic Sea Kazakhstan, and that Kazakhstan would like to region's energy issues and in particular develop multi-faceted economic co-operation, building new power links with other European including in the transit sector. Union countries. Paet stated that Kazakhstan’s OSCE presidency in "The key issue was how to bring countries on the 2010 will give the nation significant responsibilities eastern shore of the Baltic Sea out of energy and opportunities to shape international isolation," said the head of the Estonian development. It is also recognition of Kazakhstan’s government, . reforms up to this point. Both Nazarbayev and Paet Ansip said the initiative for the meeting came agreed that it is essential to intensify Estonia- from Barroso, as the EU executive headed by him Kazakhstan political relations as well. has listened to the Baltic states' concern and started Nazarbayev and Paet also discussed European taking action to break the isolation of the Baltic energy supplies. “Both sides are interested in the energy systems from the rest of Europe. creation of the Trans-Caspian Gas Pipeline and a The Commission has suggested a plan of action crude oil pipeline connecting the Caspian and Baltic according to which a commission of specialists will regions,” said Paet. Paet stated that alternative be formed to work out by 2010 detailed plans for energy sources are needed by both Kazakhstan as changing the present situation by building new an exporter and European nations as importers. electricity and natural gas links. Economic matters were also the primary topic in The European Commission has already drawn up Paet’s meeting with Kazakhstani Prime Minister a Baltic energy links plan, the Baltic Investment . Paet stated that both nations feel Programme (BIP), which covers a second interest towards direct co-operation among underwater power cable connecting Estonia and entrepreneurs. “A good example of co-operation Finland as well as a Polish-Lithuanian electricity between Estonian and Kazakhstani entrepreneurs is bridge and Sweden's electricity links with and the existent and functioning joint postal company . Under consideration as well is a gas Elektronpost.kz. Kazakhstan is also interested in pipeline from Denmark to Poland, through which Estonia’s experiences in structuring an e- Nordic gas could be supplied to the Baltic region. government,” said Urmas Paet following the Financing for the new projects can be obtained meeting. “At the same time, both Estonia and from both EU coffers and the European Investment Kazakhstan are concerned about Russia’s increased Bank. railroad tariffs towards the Baltic States,” Paet Lithuania's concern about the obligation to close noted, adding that in order to further develop the Ignalina nuclear power plant by the end of next economic co-operation, Estonia and its Chamber of year at the latest was also under discussion, Ansip Commerce and Industry would like to organise a added. "The question here is about finding a legal business seminar next year in . solution rather than political support," Ansip said. In In the meeting with his Kazakhstani colleague his words, there are several countries in the EU Foreign Minister Marat Tazhin, Foreign Minister Paet which definitely will not agree to altering Lithuania's also discussed the nations’ contributions to the accession agreement, and therefore some other building up of Afghanistan. “Both Estonia and solution must be found. Kazakhstan are participants in reconstructing Lithuania's commitment to decommission the Afghanistan. Like us, Kazakhstan sees a significant Ignalina power plant by the end of 2009 at the latest problem in the narcotics trade originating in is included in the country's EU accession agreement. Afghanistan,” Paet stated. "The EU is based on law and Lithuania must honour Another topic broached by Paet with his the agreement," Ansip said, admitting that a legal Kazakhstani colleague was the requirement for solution acceptable to Lithuania has not yet been travellers, including Estonian citizens, to register found. themselves within five days of arriving in The Lithuanian government is feverishly trying to Kazakhstan. “Hopefully Kazakhstan is ready to find a way to extend the lifespan of Ignalina and has change the registration requirement for Estonian vowed to raise the issue at this week’s European citizens,” Paet said at the meeting. Council. Paet: Compromises Cannot be Made at Estonia Interested in Intensifying the Expense of Human Rights Economic Co-operation with Kazakhstan 17 October - Foreign Minister Urmas Paet gave a 18 October - Foreign Minister Urmas Paet, in speech about overcoming cultural differences Kazakhstan on a visit, met with Kazakhstani and conflicts in the world during an President , Prime international conference in Astana, the capital Minister Karim Massimov, and Foreign Minister of Kazakhstan. The conference was called “The Marat Tazhin. Common World: Progress Through Diversity”. While speaking with President Nazarbayev, Paet stated that Estonia is interested in intensifying In his speech, he emphasised that the The president met on Wednesday in Cardiff with international community shares the responsibility of First Minister of Wales Rhodri Morgan. The two finding solutions for the world’s crisis regions. discussed the impact of the financial turmoil on The foreign minister stressed that all the Estonia and Wales and ways to alleviate its compromises made to resolve intercultural conflicts consequences. Common features of the Estonian must take into account both local practices and and Welsh cultures, questions of language policy, democratic values, as well as observe internationally Estonia's progress in information and recognised human rights and basic freedoms. “We telecommunications, and possibilities for co- know already from the times of the Silk Road, which operation were also under discussion. The Estonian united East and West, that mutually useful co- president also met with the Presiding Officer of the operation is only possible when we honour one National Assembly of Wales Lord Dafydd Elis- another’s traditions. But during the 21st century, this Thomas. does not mean making compromises at the expense Ilves opened an Estonian-Welsh business seminar of human rights and freedoms,” said Paet. and attended the opening of a joint exhibition by Paet called upon the nations of the world to Estonian architect Vilen Künnapu and his son increase their contributions for helping Afghanistan, August, a painter, within the framework of the so that the country may reach the point where it is Walestonia Festival. capable of managing on its own. “We must share our knowledge to help the people of Afghanistan Paet Met with Qatari Minister of restore their municipal governments, a trustworthy International Co-operation police force, an education system, and health care services,” Paet stated. “We also must pay more 19 October - Foreign Minister Urmas Paet met attention than ever before to aiding in the economic with Qatari Minister of State for International realm—restoring Afghanistan’s agriculture, its Co-operation Khalid bin Mohammed Al-Attiyah energy economy, and the entire economic sector in Astana to discuss international co-operation. and its ability to participate in international co- Paet stated that both political and economic ties operation,” said Paet, bringing up specific examples with Qatar need to be strengthened. “Estonia’s of areas in Afghanistan that require further relations with Persian Gulf nations have been development. modest until now, and it’s time to strengthen them,” Paet noted. Ilves: The Estonian and Welsh People Paet said that Estonia would like to improve its agreement base with Qatar as well. “We are Have Much in Common prepared to conclude an agreement on trade, 15 October - “The and the Welsh are economical and technical co-operation, as well as an small peoples only in number, and the two agreement for the protection of investments,” said have a long and venerable history in common,” Paet. “Estonia also hopes that negotiations for a free Estonian President Toomas Hendrik Ilves said trade agreement between the European Union and while addressing the Welsh National Assembly the Persian Gulf Co-operation Council will soon be on Wednesday. completed. This will help to intensify co-operation.” According the Ilves, Estonia and Wales are first At the meeting, Paet gave his Qatari colleague an and foremost united by their common contribution overview of Estonia’s economic environment and to the European common culture. investment opportunities. Estonia also values In Ilves' words, protection of the ecological Qatar’s experiences in the development co-operation system of nations and cultures is a key obligation of sector. At the end of November an international humankind. This is why the European Union is development co-operation financing conference will addressing the topic; this is why Europeans, be they be held in Qatar, in which Estonia will be Welsh, Estonian, or French-speaking Czech, are participating. tackling this issue. Foreign Minister Urmas Paet extended an He said we live in a global village in which we'd invitation for the international co-operation minister like to be understood by all, but this means of Qatar to visit Estonia, which the latter accepted. spending a considerable part of the mental resource of our culture on translation. A small nation must Estonia Intensifies Co-operation with also spend much time learning languages of larger Flanders countries. "The is, by the number of 15 October - Director general of the Foreign speakers, perhaps among the 200 largest in the Ministry’s second political department Malle world, and perhaps even among 100 largest in Talvet-Mustonen and Director of the Europe terms of written culture. Welsh wouldn't be far Division of the government of Flanders Freddy behind. The global search engine Google offers the Evens signed a co-operation protocol today. opportunity of holding a dialogue with it in 118 The protocol gives both Estonians and the Flemish languages, among them Estonian and Welsh, but the opportunity to significantly intensify co-operation itself recognises only 43 languages, and I'm proud between the two countries. to say that Estonian is one of them," the head of At the signing of the action plan, which spans the state said. years 2009-2011, the leaders of both delegations A machine recognising a language is only a emphasised that this protocol contains many areas partial step, Ilves said. "A crucial breakthrough and that have previously been ignored, and it is also timesaver will arrive only when computers are able fairly flexible and open, so that other concrete to perform quality translation from and into our projects can be added if necessary. languages," he said, adding that we might be closer Freddy Evens, the leader of the Flemish to this happening than to discovering the secret of delegation, brought attention to both increased co- how rocks from South Wales ended up in operation between harbours as well as projects Stonehenge.

3 aimed towards Flanders’ interest in public whole – is an inevitable and consensual process,” administration and e-government. said the minister. The leader of the Estonian delegation Malle “For others to help us, we must first help Talvet-Mustonen stated that prior co-operation and ourselves. Excellent co-operation between our reciprocal contacts with Flanders have been good Ministry of Defence and the and productive. will result in the completion of the Estonian Defence “I’m very pleased to acknowledge that co- Forces Development Plan 2009-2018 in the near operation between museums is intensifying, both in future; the document must contribute to planning the organisation of exhibits and the exchange of 2% of the GDP, allocated to the military national experts, as is the exchange of students and defence budget, over the next decade.” instructors between Estonian and Flemish Aaviksoo continued, “The plan, once endorsed by universities,” she said. Talvet-Mustonen also the government, will establish realistic goals for emphasised the growing interest both parties have capability development in all the priority spheres, towards environment-related co-operation projects, from intelligence and surveillance to air defence, including environmental education. anti-tank defence, armoured vehicles to protect the The foundation for the 2009-2011action plan is infantry, and the review of the operational structure. an agreement concluded in March of 1996, on the Resources will be allocated to contribute to the basis of which every three years the parties agree achievement of the established goals by 2018.” upon new priority areas and concrete projects for “One thing is also clear – the events in Georgia co-operation. are proof that the current conceptual trends applicable to the development of national defence in Estonia – for example, combining professional DOMESTIC NEWS soldiers and reservists produced by conscription – will prevail. Television Journalist Urmas Ott Dies at All high-ranking NATO commanders who have Age 53 recently visited Estonia have confirmed the 17 October - Urmas Ott, the television talk show appropriateness of the chosen model, considering host whose fame extended far beyond Estonia our geo-strategic location, history and resources.” with the shows he made with Russian stars in “Military national defence has been an the final years of the and after, excessively closed sphere of administration. Military died today at the age of 53 at University national defence, based on the total defence Clinical Hospital. principle and reserve army, require consistent After working as a news host, Ott launched his dialogue and a far more open atmosphere. We must popular talk shows on Estonia's Soviet-era state discuss our choices and decisions more than we did television in 1986. He went on to host the same before - and this is a true paradigm shift - starting format in Russian for Moscow-based television, from the new development plan. We are about to interviewing scores of top Russian and Soviet stars launch the upcoming infrastructure projects and air over the years. policing projects and the design for the development In later years Ott worked for private Estonian TV of the Ämari Air Base.” stations and the radio. “Urmas Ott’s departure causes a painful feeling of emptiness and a profound silence,” President ECONOMIC NEWS Toomas Hendrik Ilves wrote in a letter of condolence Estonia Meets EU Average for Percentage to Ott’s family. “His interviews and books will continue to show us the sharply direct, outwardly of GDP Allocated to R&D very energetic and inwardly extremely sensitive 21 October - Estonia is average among Urmas Ott, who cared about his people and loved his European Union member countries in terms of country.” financing the research and development (R&D) sphere, according to a Eurostat study. While 1.84 percent of the gross domestic product DEFENCE NEWS (GDP) was the average allocated by European Union states for research and development and labour Aaviksoo Gave Overview of National costs of the sector in 2006, in Estonia the Defence in Estonia percentage was 1.1, the 15th highest in the EU. 15 October - Minister of Defence The proportion of funding for R&D was the gave a press conference to introduce the new highest in Sweden (3.73 percent of GDP) and Estonian Defence Forces Development Plan Finland (3.45 percent); of new member countries 2009-2018 and to talk about the meetings of Slovenia (1.59 percent) and the Czech Republic the NATO defence ministers in London and (1.54 percent) were ahead of Estonia. Allocations for Budapest and the latest public opinion and research and development were the lowest in national defence poll. Cyprus, , Bulgaria, and -- all under “Lately there has been a lot of speculation on 0.5 percent of GDP. NATO contingency plans. Our recently commissioned Of the world's biggest economies, (3.20 survey indicates paradigm shifts in threat awareness percent) and the United States (2.62 percent) were among the Estonian population after the military considerably ahead of the EU average. conflict in Georgia and also higher expectations. At the same time, Estonia took first place in the Likewise, these events have changed the thinking European Union in terms of the growth in means patterns in the capitals of NATO. The so-called allocated for R&D in the years 2001-06, by 25.3 per reasonable defence planning for Estonia, the Baltic cent a year. The average growth in the European states, Poland and others – together with NATO as a Union in the same period was 3.2 percent.

4 The growth in these allocations was also higher than 20 percent in Latvia (24.4 percent), ESTONIAN REVIEW (23.5 percent) and Romania (20.2 percent). (ISSN 1023-1951) According to the Lisbon Strategy, which is Is issued by the directed at raising the global competitiveness of the Press and Information Department, Ministry of Foreign Affairs ISLANDI VÄLJAK 1, , ESTONIA 15049 European Union's R&D allocations, they should all be TEL +372 637 7600 brought up to 3 percent of GDP by 2010. FAX +372 637 7617 The Lisbon Strategy also recommends that two- Estonian Review is also available over the thirds of R&D expenses could be financed by the Internet at http://www.vm.ee business sector. The actual European Union average [email protected] concerning this point was 54.6 percent in 2005. To subscribe, please contact: The leading countries in terms of the share of business in the R&D sphere are Luxembourg (79.7 percent), (67,6) and Finland (66.9 percent), with Cyprus (16.8), Latvia (20.8) and Bulgaria (27,8 percent) bringing up the rear. The respective Estonian figure is slightly under 40 percent.

Over Half a Million Tourists Used Estonian Accommodation Establishments this Summer 15 October - Statistics Estonia said 572,000 foreign tourists stayed in Estonian accommodation establishments in the three summer months, 5 percent more than in the same period last year. The number of foreign tourists using accommodation services increased in all three summer months compared to the respective months last year. The share of foreign tourists among accommodation establishments' clients is still about two thirds of the total. Of the foreign tourists that stayed in the accommodation establishments, 80 percent came to Estonia on holiday; for only 13 percent the stay was connected with work or business. Traditionally, most of the foreign tourists— 64 percent—stayed in Tallinn. Residents of Estonia stayed in accommodation establishments less frequently than last year, with 339,000 Estonian residents staying in them, 16,000 fewer than last year. Of the accommodated Estonians, 64 percent were on holiday and 20 percent stayed in the establishments for work reasons. Although accommodation establishments provide various different opportunities for an interesting and healthy holiday, the main reasons for the organisation of a domestic trip were the weather and economic opportunities. In August there were 940 companies providing accommodation services to visitors, with 19,500 rooms and 44,300 beds at their disposal. The occupancy rate of the rooms was characteristically high for August, with more than half the rooms occupied. However, occupancy was three percentage points lower than last August. During August the average cost of an overnight stay was 473 kroons (EUR 30.22), eight kroons higher than in August 2007.

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