1/2009 on legalities

General Assembly

Jan Palmstierna Ambassador of Sweden to Estonia booming country, a tax paradise, with sharply rising salaries and loans and with most SUVs (big jeeps) per capita in the world. Especially that last fact made very many Estonian politicians very proud!!

Since last autumn the reports in Swedish media are very negative. The Swedish media basically communicated to the Swedes that their bank accounts, savings and pension money is threatened by the Swedish exposure in the Baltic’s. There is of course some truth in this, even if it is exaggerated and it needs to be addressed before too much damage is made.

According to Swedish mentality the changes and good examples must come from the top. According to eastern Dear reader, tradition the changes are ordered from the top but only counts for the bottom. Sweden will help the Baltic’s, but please behave! Estonians often used to describe themselves as being between east and west and I believe that is true, also in this respect During the last half year we have seen that the reality has unfortunately. Therefore it is very important that Estonian finally reached the Baltic States. Many people refer to it like; leaders show good example and start cutting costs and After the party comes the hangover! expenditures for themselves and live up to the word political correctness. For sure the Baltic States were not alone at the party. Basically the whole world was invited to the party and has now to deal Swedes are not impressed by show off actions like the new with it. I will not spend more time on making any forecasts here Russians. On the contrary! In Sweden you should have a low in my focus editorial, because no one knows what really will profile if you want to be successful. The best example of this is happen globally! IKEA’s founder Ingvar Kamprad. He is one of the world’s richest persons and at the same time the most respected business The situation for the Baltic’s is however not so bad, if the man in Sweden. This should normally be impossible according situation is handled professionally by the public sector as well to the Jante law! as by the private sector. What speaks for the Baltic States is the geographical location, the size of the countries, infrastructure, How has he then managed? Well, he lives a very low key life, education and readiness for work. What is necessary now with his feet on the ground and when he leaves his feet from is to cut the costs. This will improve the competitiveness of the ground, he does it in economy class, not in a private jet! the region and lower the inflation which makes the risk for devaluation lower. I read that the Lithuanian President had a problem getting himself to Davos World Economic Forum meeting since he used Sweden, being the biggest investor in the region has also to charter FlyLAL planes and as they went out of business he clearly committed itself to support the Baltic States financially. had big problems to get himself to Davos in a way which would Sweden being itself 9 million people with a strong industrial be decent for him. and financial base has already not only supported the last 15 years growth here, but also now showed a willingness to This is the same stupidity as the three big bosses of American give state to state financial support. The Swedish taxpayers car industry flying to Washington D.C in private jets asking are also very positive to the Baltic States historically. The for money to save their jobs. The American people were not Swedish Krona has also now acted as a shock absorber for the impressed and the Swedish people would not either. The Baltic currencies. All this is of course risky for a country like Russian people would probably only conclude that they have Sweden. always been flying private jets and will always do that. What we think doesn’t really matter! All this means that the Baltic Governments must show dedication and responsibility. It is therefore necessary to I hope the Estonian people cares how their leaders behave, not only cut away stupid spending that irritates your own because the Swedish will for sure be more sensitive for Baltic population, but also can irritate the Swedish taxpayers. Here I behavior style in the future. must say that it is time for Estonia to think about the picture of Estonia abroad. On a long term basis, your friends will judge you depending on how you behave, therefore it is time to address this present Let me make a fast recap. In 1991 the Estonians were situation and improve it! considered as poor people in every respect, having been oppressed under Soviet occupation. It was very easy to get the We, Swedes who live here and the Swedish Embassy, does what public in Sweden to agree to support the Baltic independence. we can to improve the picture of Estonia, but we need help, Sweden was also politically ready to support the Baltic States otherwise the situation will just get worse and this is not good both politically and financially, as it took away aid and support for Sweden, nor for Estonia! from communist regimes in the third world and decided to help the neighbors instead. This has been shown in almost all I hope that the hangover stays at the level of headache and that sectors of life. other symptoms of hangover can be avoided!

During the last three years the Enjoy reading nr 1, 2009! picture became different. Estonia Anders Hedman was described as a Chairman SCCE 5

The Swedish Chamber The General Assembly 2009 of Commerce in Estonia Smooth and effective proceedings and a nice and cosy atmosphere characterized SCCE’s General e Swedish Chamber of Commerce in Estonia – Publisher Assembly at the Three Sisters Hotel in Tallinn February 19th. is published by SCCE - is a non-pro t association registered in the Swedish Chamber Estonia. Since its foundation 1991 the SCCE has Being the supreme governing body of the Swedish Chamber of of Commerce in Estonia - SCCE. grown considerably and today the Chamber unites Commerce in Estonia, the General Assembly could look back Address: close to 140 member companies and organizations at a successful 2008 as the Chamber’s Annual Report was headquartered in Estonia, Sweden as well as other presented. The Swedish Chamber countries. of Commerce in Estonia The Swedish Chamber of Commerce in Estonia – SCCE - is a non- 15 new members joined the SCCE in 2008 and together with Rüütli 9 profi t association registered in Estonia. Since its foundation 1991 the EE-10130 Tallinn SCCE’s old members they could choose between 22 different SCCE has grown considerably and today the Chamber unite close to Estonia seminars, study visits, activities and events arranged by the 130 member companies and organizations headquartered in Estonia, Chamber during the year. E-mail: Sweden as well as in other countries. [email protected] SCCE is in many ways a mirror of the intensity in Swedish-Estonian Tel: (+372) 501 9813 As of the date of the General Assembly, February 19th three commerce and trade. Sweden is the biggest foreign direct investor new members have joined SCCE and two of the Chamber’s old Editorial content and articles in Estonia and in terms of export and import Swedish-Estonian business is among the top three. SCCE accepts editorial content members have chosen to become Royal Members. and articles for the A main task of SCCE is to create an environment for networking magazine promoting the and exchange of information. The Chamber act as a meeting place commerce and trade between by arranging seminars, business lunches, company visits, hosting Estonia and Sweden primarily. business delegations as well as arranging social events for the The author of editorial texts and members. articles published is responsible for the content. Following a SCCE initiative, FICE - Foreign Investors’ Council in Estonia was founded in August 2008. FICE is a lobby group acting SCCE welcomes contributions to through contacts with the Estonian Government and Estonia’s the magazine and reserves Governmental bodies. Together, the nine countries represented the right to refuse publishing of among FICE’s members had a more than 80% share of the total content not being in line with the foreign direct investments in Estonia during 2008 [source: Eesti Statutes of SCCE. Pank]. Special and unique SCCE member benefi ts include listing Advertising in the SCCE Trade Directory, an opportunity to a further market introduction in the Member in HighLight section of the Chamber’s The advertising website as well as taking advantage of a steady fl ow of Special pricelist is available at www.swedishchamber.ee Offers.

Subscriptions and The fee for basic membership in the Swedish Chamber of Commerce additional copies in Estonia is EEK 5.900:- per year and EEK 20.000:- per year for Royal Membership (2009). Membership is only granted to legal The magazine is distributed entities. free of charge to the members of the Swedish Chamber of For more information about SCCE, please visit www. Commerce in Estonia. swedishchamber.ee. You are also welcome to take a direct contact SCCE’s Council 2009 (left to right): with SCCE’s Ombudsman Kristiina Sikk: kristiina@swedishchamber. Anders Hedman – Sirowa, Per Lindberg – Stoneridge Electronics, Karolina Ullman – MAQS Law Firm, Henrik Avasalu – Swedish Trade Council, Companies not yet being ee or tel. (+372) 501 9813. Katrin Luhaäär – Scandinavian Airlines, Anders Näslund – Boomerang Subcontracting, Reidi Strandberg – Rödl & Partner, Rein Leipalu – Ragnsells, members of the SCCE as well as private individuals can subscribe Tiina Reijonen – Reval Hotels. Portrait: Kristoffer Lindberg – SEB. to . In this issue: Meet SCCE’s Council 2009 SCCE also provides additional copies of for SCCE p. 3 Editorial An important task for the General Assembly is to elect the member’s own distribution of p. 5 The General Assembly 2009 Chamber’s Council. This year SCCE could welcome Katrin the magazine to customers Luhaäär – Scandinavian Airlines and Rein Leipalu – RagnSells and business contacts to a net p. 6 Legalities as new members of the Council. Kurt Söderström and Johan printrun cost. p. 9 focus met: Jan Palmstierna Aschan had decided to leave the Council and were duly thanked for their contributions to the Chamber. Please contact p. 12 Taxes Kristiina Sikk p. 14 The fi rst 91 years for further information: The new SCCE Council had its fi rst meeting March 10th and [email protected] p. 15 focus on the Economy re-elected Anders Hedman as Chairman and elected Karolina p. 23 Arbitration Ullman as Vice Chairman. Printed in the EU by KNT Meediad OÜ, p. 25 focus on tour The minutes of the General Assembly and the Annual Report Tallinn, Estonia. p. 31 Newsfl ashes 2008 are available online at www.swedishchamber.ee.

All rights reserved. p. 39 ps. Report: Kristiina Sikk – SCCE Ombudsman 6 7

of insolvency. Reconstruction provides viable alternatives to bankruptcy by allowing for both the company and its creditors the chance to continue business and have the claims satisfied Some remarks regarding the new on legalities through future income. Estonian Employment Contract Act Reconstruction proceedings can be started by the company by Karolina Ullman and Marget Henriksen, itself. The requirements the business has to meet, which also MAQS Law Firm have to be explained in the application include prospects of The basics of Bankruptcy protection or Reconstruction insolvency, need for reorganisation and the possibility that After long debates, the new Employment Contracts Act was by Timo Kullerkupp and Jacob Strandgaard Andersen, MAQS Law Firm the company can overcome its insolvency problems through sustainable management. Upon the existence of the above finally passed by the Estonian Parliament Riigikogu on 17 circumstances the court shall start the reorganisation December 2008. The new proceedings and appoint a reorganisation advisor (Est: act will enter into force on Several countries have Further, the company is saneerimisnõustaja), who has a substantial role in what follows. 1 July 2009. The current Act adopted bankruptcy obliged to continuously work has been effective since the protection legislation. In the towards a viable restructuring Once reorganisation has started there are several consequences beginning of the 1990’s and US it is known as „Chapter plan and/or an agreement with for the company and its creditors. Execution proceedings during the last decade, a new 11“ bankruptcy, and has been its creditors. The court may against the company act has almost been passed used to give time for very resolve to ratify a composition are halted, with by the Parliament three large corporations such as the settlement, binding for all the some exceptions. times without making it to Lehman Brothers to develop a creditors, even if it has only The accumulation of the final round. plan to reorganize in times of been accepted by a qualified interest on arrears and financial difficulties. majority of them. contractual penalties But now it’s here and with it, that increase over time the Wages Act, the Working In Denmark and Sweden For the employees a situation is stopped. Court cases and Rest Time Act and the similar legislation has been with suspended payments against the company, Holidays Act are repealed, adopted and developed over naturally causes uncertainty. and bankruptcy actions since the provisions of those the years. It is known as They are however given the are suspended. The acts are implemented in the Suspension of Payments right to demand financial period of the above- Karolina Ullman new Employment Contact Act. or Company Restructuring, security for their first mentioned measures or commonly just upcoming salary payment. shall be decided by the One major change introduced by the new Employment Contract “Restructuring”. It offers a Failure to provide security court, being either the Act is shortening of the mandatory notification periods in the chance for companies to solve entitles the employee to moment of adoption of case of redundancies. While at present, the law requires that financial problems without terminate the employment the reorganisation plan employers inform people who they plan to make redundant Timo Kullerkupp being declared bankrupt. relationship. Jacob Strandgaard Andersen or the completion of two to four months ahead, now they can soon do it with shorter execution of the same. notice. The notice periods are in general cut by one month. The Estonian parliament Riigikogu recently adopted their own The period of restructuring is initially three months, with a version of bankruptcy protection named the Reconstruction possibility of extending it for up to twelve months. The court also The reorganisation advisor acts largely as an intermediary Besides cutting notification periods, compensation to be paid Act (in Estonian: Saneerimisseadus). The act entered into force has the discretion to end the restructuring, if the company does between the court and the company and between the creditors to an employee upon redundancy will also be reduced and the on 26 December 2008. not loyally cooperate, if the restructuring lacks purpose, or if the and the company. The reorganisation advisor provides principles for payment of the compensation will change. While company is not adequately working towards a solution for the information to the court and the creditors, he or she advises at present the employers are obliged to pay compensation Scandinavian practice of Reconstruction company. The administrator is also under an obligation to notify the company, constantly analyses the insolvency situation of amounting to two to four monthly wages, depending on the the judge if any of these reasons exist. the company. He or she is in addition obliged to put together length of the employment. Under the new Employment Contract From the Scandinavian the reorganisation plan, which includes the description of all Act, they will need to pay only one average monthly wages in neighbour countries we have If the company is successful in achieving a deal with its creditors measures to be taken in order to achieve the ultimate goal compensation. If the employee has been five years or longer learned that during the period or otherwise is able to restructure the company, so it can of solvency. The measures may include transformation and with the company, additional compensation of one to two of Restructuring, individual meet its obligations in the future, the goal has been achieved. alterations of the creditors’ claims. The means may include months wages will be paid for by the Unemployment Insurance debt collection and bankruptcy It may involve reduced payments of the creditors’ claims, but extension of due dates, reduction of indebted amounts, payment Fund to the employee. petitions are suspended, which quite often this reduced payment will be much larger than in instalments etc. It must be said that claims arising from allows the company to continue the potential dividend that the creditors would receive had the employment relations cannot be altered in the reorganisation If unemployed, an employee its day-to-day operations. The company been declared bankrupt to begin with. proceedings. will receive unemployment overall purpose is to give the insurance benefit for between company time to restructure its Should the attempts to The creditors pay a role as 180 to 360 calendar days, financial situation and explore save the company fail, well. They are the ones who depending on the length possibilities for making an the company will often approve the reorganisation of the period the employee arrangement with its creditors. file for bankruptcy itself. plan. They also have a right has been working before If not the suspension of to be kept informed of the becoming unemployed. The formal decision on payments will end in any proceedings and the status restructuring is taken by a judge, event, opening up for of the company allowing for If the employment contract upon the petition from the company. The company typically individual debt collection comfort and protection. has been terminated due to seeks this option when it is unable to meet its obligations, but and/or creditors’ redundancy, the employer is still believes it has a chance of survival. The judge will also bankruptcy petitions. Although the act is new and the practice of its use is yet to obliged to give the employee appoint an administrator, typically a bankruptcy lawyer, to be seen, it does provide for more opportunities in cases of some time off to seek for a oversee the process. The new Estonian legislation insolvency in Estonia. Companies with good prospects can new job. through the means provided find ways to continue their Although the company can continue its day-to-day operations, The Estonian parliament adopted the Estonian version of business and get protection from the creditors while the latter When terminating the there are a number of limitations on the decisions a company ”bankruptcy protection” in the end of 2008. The aims of the should expect a far better result than they would receive in the contract in breach of the can make during the period of restructuring. There are strict act are similar to the ones of US and Scandinavia – to provide case of bankruptcy. It should be considered as an option mostly law, the employer must limits on payment of debts, and all important decisions have to additional opportunities in Estonian insolvency legislation. As for larger companies because it can be quite costly, but as an pay compensation of three be approved by the administrator. causes for insolvency and future prospects may greatly differ investment, should be worth it. months wages. This means from one case to another, so must the law and the treatment that the price tag of dismissing Marget Henriksen 8 9

a person is now clear. There is no possibility for a dismissed employee to claim restatement in employment as under the current law unless the dismissed person was pregnant at the time or he or she was an elected representative of the employees at the work place.

The new Employment Contacts Act does not make it mandatory to pay additional salary for work during evening time; however, the amount of additional salary payable for work during night time is increased. In addition, overtime work is to be compensated by time off. Only if especially agreed upon, overtime will be compensated by money and if so, at least 1.5 times the normal salary. Jan Palmstierna Ambassador of Sweden to Estonia According to the new Employment Contract Act, non- competition clauses are valid after the termination of the employment contract only if the employer pays special compensation and such compensation must be paid after the end of the employment, not during the employment as many Ambassador Jan Palmstierna handed over his Swedish Government will have an companies do today. credentials to President Toomas Hendrik Ilves effect on Estonia, just as fi nancial Ambassador Jan Palmstierna decisions made by Estonia’s September 2nd last year. Jan Palmstierna Government will have an effect 2008– came from a position as Ambassador and on Swedish interests. There is a Ambassador of the Kingdom of Chief Coordinator for Trade and Investment close and ongoing cooperation Sweden to the Republic of Estonia Promotion at the Ministry for Industry and between our two countries’ 2004–2008 Central Banks, Riksbanken Ambassador and Chief Trade and the Ministry for Foreign Affairs in and Eesti Pank, and there is Coordinator for Trade and Stockholm. an equally close cooperation Investment Promotion, between the Swedish and Ministry for Industry and Trade • Handing over the diplomatic Estonian Financial Supervisory (2004-2006) and credentials follows a tradition Authorities. Ministry for Foreign Affairs going way back in history, (2006-2008) told Jan Palmstierna as 1999–2004 met him at the Swedish Ambassador of Sweden to Embassy in Tallinn’s old Lithuania town. The international 1995–1999 diplomatic protocol calls for Minister, Embassy of Sweden, the credential letter to be Bonn, Germany For many, the best news signed by the Head of State 1990–1994 introduced by the new Act is and it should be personally Deputy Director and Director, that the employers’ record delivered to the Head of Trade Department, book (Est: tööraamat) as well State in the host country. My credential letter was consequently Ministry for Foreign Affairs as the personal information signed by Sweden’s King Carl XVI Gustaf and I delivered it to 1987–1990 sheet (Est: isikukaart) will be President Ilves at the Kadriorg Palace in connection with a Secretary of the Standing abolished. solemn ceremony. Committee on Foreign Affairs, Swedish Parliament • The Baltic States are not new to me, continued Jan 1984–1987 Palmstierna. I served as Ambassador of Sweden in Lithuania Desk offi cer, Eastern Europe According to the legislator, the new Employment Contract Act 1999 – 2004 and I have also come in contact with Estonia, Latvia and Staff Department, is supposed to increase labor market fl exibility and increase and Lithuania in my different positions within international Ministry for Foreign Affairs the company’s chances to survive during tough times; thank commerce and trade in the Ministry for Foreign Affairs and the • Sweden is keeping its position 1983–1984 you Riigikogu! Swedish Parliament. as the leading nation in terms Skandinaviska Enskilda Banken of foreign direct investments (SEB), Malmö, Sweden For companies, it is thus now a good time to make a review in Estonia and a major task for 1979–1983 of all your employment agreements to see if they should be Priorities 2009 us is to contribute to a further First Secretary, Embassy of amended to be able to benefi t from the new Act. As usual, development of the commerce Sweden, Copenhagen, employers can give employees more favorable conditions than We have an intensive year ahead of us 2009, said Jan and trade between our two Denmark the law prescribes. If your company’s employment contracts Palmstierna. Promoting Sweden and Swedish interests are countries. We at the Embassy are 1977–1979 for example repeats the wording of the current law and this is always on top of our agenda and this year we also focus on working closely together with the Second and First Secretary, more favorable for the employee than the conditions set in the Sweden’s upcoming Presidency of the European Union as well Swedish Trade Council in Tallinn Embassy of Sweden, new Act, the old agreed conditions will still apply unless the as the global fi nancial situation. and the network of the Swedish Santiago de Chile parties amend the agreement. Chamber of Commerce in Estonia 1976–1977 • Swedish banks are dominating the fi nancial market in Estonia provides an additional platform Offi cer, Law department, and it is also obvious that fi nancial decisions made by the for our promotion work. Ministry for Foreign Affairs 10 11

• Sweden will enter its second unique historical sites as well them have actually been studying years, concluded Jan Palmstierna. There have however been 1974–1976 period of Presidency of the as shopping opportunities. The of Northern Italy, with and working abroad when they exceptions through time. In the USA Wollmar Boström served Stagiaire, European Union July 1st this year northern part of Sweden, often the fi rst embassies being apply. Fluent English is a demand as envoyé for twenty years 1925-45 and among the long-time Ministry for Foreign Affairs and our Presidency will last for a referred to as Europe’s last established in the 13th century. as well as good skills in a second Ambassadors to the USA I can mention Erik Boheman 1948– 1972–1974 six months period until December wilderness, is an additional It was in Italy that many of language and mastering a third 1958, Hubert de Besche 1964–73 and Wilhelm Wachtmeister Assistant lecturer, 31st. It is a unique opportunity for unique and valuable resource the traditions of modern language is a merit. 1974–89. In the Soviet Union Sweden had Rolf R:son Sohlman University of Stockholm Sweden to lead and infl uence the Sweden can offer visitors from diplomacy began, such as the based in Moscow 1947–64 followed by Gunnar Jarring 1964–73 work with important EU issues abroad. presentation of a diplomat’s • A Swedish Ambassador typically and in Russia Sven Hirdman served 1994–2004. and a main task for us at the credentials to the Head of serves at one location for three Swedish Embassy is to inform • We intend to highlight the State. years with a possibility to prolong Text: Megazine – Tallinn and communicate the Swedish Swedish National Day June the posting for another two Photo: Lea Tammik Government’s goals and what 6th and we are happy to note The ability to practice Sweden wants to achieve during that the May 9th Open Doors diplomacy is one of the defi ning the Presidency. Day of all EU Embassies elements of a State and from in Tallinn have attracted a Italy the practice spread to Meet the Swedish Embassy Staff in Tallinn Embassy of Sweden • The overall goal of the Swedish lot of Estonians to visit the other European countries. Pikk 28, 150 55 Tallinn, Estonia Government during the Presidency Swedish Embassy and the activities and performances we offer During the Renaissance and Phone: (+372) 640 56 00 is to strengthen Sweden’s role in throughout this day. onwards diplomats were E-mail: ambassaden.tallinn@ the EU, to serve EU’s interests, usually relatives of the ruling foreign.ministry.se to strengthen EU’s role as a family or of a noble or very Web: www.swedenabroad.com/ global actor and the Swedish Sweden’s Diplomatic high rank in order to give them Start____17837.aspx EU Presidency agenda is quite Mission in Estonia legitimacy. extensive, told Jan Palmstierna. • Following the establishment of are Washington, London, By the early 18th century the Sweden abroad • Jobs, economic growth and the Republic of Estonia in 1918, Berlin, Moscow and Beijing. elements of diplomacy had competitiveness are three Sweden recognized Estonia 1921 The smallest Swedish mission spread to Eastern Europe A priority task of missions important issues, all of them and opened a diplomatic mission abroad is the consulate- and Russia, but the entire abroad is to promote Swedish having a direct impact on today’s in Tallinn the same year. general in Mariehamn on diplomatic edifi ce became economic interests, by global fi nancial situation. In Åland, with one offi cial posted. disrupted by the French providing services to Swedish connection with her visit to Tallinn • In December 1989 a branch Revolution and the subsequent Hans Hansson companies and encouraging last autumn, Maud Olofsson, offi ce of the Swedish Consulate years of warfare. Lt Col foreign investments in Sweden. Sweden’s Minister for Enterprise General in Leningrad was opened Anna Valve Defence attaché Liina Kümnik & Energy and Deputy Prime in Tallinn. The status of this offi ce After the fall of Napoleon, First secretary EU affairs, Press, Sweden promotion, Minister, highlighted climate, was changed in August 1991 and the 1815 Congress of Vienna politics, Sweden Promotion webmaster environment and energy as three as the fi rst foreign country Sweden established an international other important issues on our EU re/opened its Embassy after system of diplomatic rank. agenda. A safer and more open 51 years. Three years later the However, disputes on Europe, the Baltic Sea strategy and Swedish Embassy moved into the precedence among nations EU’s relations with neighbouring beautiful von Rosen palace at Pikk persisted for over a century countries like for example Russia, 28 in Tallinn’s old town. until after World War II, when Ukraine, Moldova and Belarus are the rank of Ambassador also included on Sweden’s EU work • In addition to myself there are became the norm. programme. 14 staff members at the Embassy, Photo: Pawel Flato said Jan Palmstierna. Sweden has Ewa Björling Today’s international standards • On a Nordic – Baltic level we also two Honorary Consulates in Minister for Trade on diplomatic relations were Photo: Pawel Flato will continue to support the Estonia with Mr Ahti Puur serving formalized by the 1961 Vienna Carl Bildt cooperation between the eight as Honorary Consul in Narva and Convention. Pending the size Minister for Foreign Affairs countries involved. As early as Mr Madis Kanarbik serving as of a diplomatic mission most 1989, discussions began within Honorary Consul in Tartu. embassies are headed by an Gunilla Holmberg The Swedish Foreign Service the Nordic Council on how to Ambassador followed by a Third secretary Archivist, consular Ülle Nurme comprises the Ministry for work best with the Baltic States varying number of diplomatic and passport issues Tiina Saidla Cleaner Foreign Affairs and 104 at parliamentary level. Originally Future Ambassadors ranks; Minister, Minister- Consular issues, residence and missions abroad, which include known as 5+3 the Nordic - Baltic of Sweden Counsellor, Counsellor, First, work permits Assistant to the Not available for photo at focus visit embassies, representations, cooperation began formally in Second, Third Secretary, Defence attaché to the Swedish Embassy: delegations and consulates. 1992. In year 2000 Toomas Hendrik • A diplomatic career is indeed Attaché, Assistant Attaché. A total of approximately 2.500 Ilves, at that time Estonia’s Foreign popular among young people in Victoria Forslund Bellass persons work in the Foreign Minister, took an initiative for a Sweden. The Ministry for Foreign Chargé d’affaires is a separate Counsellor / Migration and Service. closer Nordic - Baltic cooperation Affairs offers a diplomatic trainee title used when an Ambassador administrative affairs, EU affairs, Photo: Pawel Flato named with a term expressing the programme and usually some or other head of mission is economics/trade, security affairs The Swedish foreign enhanced unity “Nordic-Baltic- 1.000 – 1.500 persons compete for Gunilla Carlsson not present, has not been representations report directly Eight” - NB8. the 10 – 15 trainee positions being Minister for International appointed, or is otherwise not Emilia Nummelin / Intern to the Ministry for Foreign available. An academic degree is Development able to discharge duties in a Affairs while they, at the • Promoting and increasing the mandatory for the applicants and specifi c location. Stefan Pettersson same time, are autonomous public awareness of Sweden is an they are in most cases around 25 Nordic police liaison offi cer government agencies. ongoing work for us and all other years old when they send in their Diplomacy Consular commissions often Swedish Diplomatic Missions application. They should possess include services provided for Kadri Haljasorg The number of persons posted abroad. Swedish ski resorts have a very good knowledge about the While diplomacy has been citizens or residents of the Assistant to the Nordic at a Swedish mission abroad become popular among Estonian Swedish society in general as practiced since the fi rst city- sending country, as well as, police liaison offi cer varies from one to around families and so has Stockholm well as international issues and states were formed millennia for example visa services for seventy. Among the largest and other Swedish cities offering a issues involving Sweden in the ago, more modern diplomacy is nationals of and residents in Katrin Valdek Rille Villems Steven Põllo and Bruno Paesalu Swedish embassies wide selection of cultural events, international community. Many of often traced back to the states the host country. Third Social secretary, cashier Receptionist Drivers 12 13

There are some exemptions on social tax to be paid for remuneration actually paid for a particular month; if the employee is a minor (up to 17 years old) or if the employee, as a parent or a guardian, is raising a child under 3 years of age or Taxes 2009 three or more children under 19 years of age. This exemption is The car also valid for pupils and students. Though changes have Unemployment tax The most unpopular Estonian taxation The total tax costs per month per car are 3,344 EEK (until been made in the Estonian December 31st, 2008 it was 1,671 EEK) and the total tax costs tax system this year, we The unemployment tax rate was increased to 1% for employees change this year concerns the car! per year per automobile are consequently 40,128 EEK. It is still have a rather simple, (withheld) and 0.5% for employers as of January 1st this year. important to note that this is the tax amount payable if the car straight forward and Effective January 1st, travels are not registered. transparent taxation system, Income tax 2009 amendments to says Reidi Strandberg, the Value Added Tax If the car travels are registered, the price per kilometer is 4 MBA, Board Member and In 2009 the income tax rate is 21% (same as in 2008). The Act and the Income EEK. Pending the distance of private car travels, the price of the Associate Partner of Rödl & current plans, which might be changed, calls for a 20% income Tax Act entered fringe benefit could be less than 4,000 EEK. Partner. tax rate 2010, 19% in 2011 and 18% in 2012. into force. Among other things, the Main changes made concerns the tax payment system as such, Changes were not made for dividend payments – we still have to monthly tax payments Personal car the social and unemployment taxes and the VAT. The income pay income tax 21/79 from the dividend amount. From January payable increased taxation 2009 remained the same as it was in 2008, which is not 1st, 2009 companies shall also pay income tax on decrease when an employer’s The Government of the Republic has changed the size of the a change but it is indeed a change of previous political plans. of share capital or contribution as well as from the part of automobiles are driven benefit for using a personal car for work travels and as of this liquidation proceeds payments which exceed the monetary and for personal use. year it is exempt from tax, if the travels are registered in a A brief summary on the major 2009 taxation changes in Estonia non-monetary contributions made to the owner’s equity. driving log and the distance driven for private use is less then is presented below. 1,000 km per month. There is an illustrative table showing how to tax a decrease of Value Added Tax The Estonian Taxation Act 2009 the share capital. When driving the car for personal use, every driven kilometre The price of the car is valued as a benefit amounting to 4 EEK/km. If the monthly Effective January 1st 2009, all tax payments will be handled A company has 2 owners – a natural person Mr. X and a as a fringe benefit driven private distance exceeds 1,000 km/4,000 EEK this benefit in one online tax account. Every person has one prepayment company OÜ Y. The nominal value of shares paid is 160,000 EEK. incl. VAT is 4,000 EEK. is taxed with income tax and social tax as a fringe benefit. account and one unique reference number for all tax payments. In year 2003 there was an increase of equity with bond issued in Every month VAT in the amount of 1,160,000 EEK and in 2009 the owners decided to the amount of 610 EEK If the work travels with a personal car are not registered in a This definitely simplifies the tax payment procedure and the reduce the share capital by 900,000 EEK. shall be paid for every driving log the benefit is valued at 1,000 EEK. sequence for fulfilling the tax obligations is appointed in the car used as a fringe Estonian Taxation Act §105 (6). Owner Share capital Participation Bond issue after 2000 benefit (until December Photo: Goodyear MR X 40,000 25% 250,000 31st, 2008 it was 305 Text: Since this system has changed it might cause some problems OÜ Y 120,000 75% 750,000 EEK). 160,000 100% 1,000,000 for accountants. It is difficult to determine how to report the Reidi Strandberg prepayment account in the bookkeeping since there are no Income Tax Owner Share capital Reducing After reduction Taxable MBA, Board Member and changes in the accounting law regarding tax types and in the Associate Partner of annual report you have to reflect all tax balances according to after bond issue amount As the price of the car fringe benefit is 4,000 EEK, income tax MR X 290,000 225,000 65,000 185,000 Rödl & Partner the type of taxes. amounting to 1,063 EEK/month should be paid for every car Roosikrantsi 2 OÜ Y 870,000 675,000 195,000 555,000 used as a fringe benefit (until December 31st, 2008 it was 531 1,160,000 900,000 800,000 740,000 EE 10119 Tallinn, Estonia Excess payment from claims for refund is transferred to EEK). Tel: (+372) 68 05 620 the person’s prepayment account after the tax authority has e-mail: accepted the refund claim. To calculate the tax amount, you have to compare the nominal Social Tax [email protected] Payment of tax nowadays arrears in installments and has value paid (160,000 EEK) and payment paid out to the owners www.roedl.ee become an important issue as a well-founded application (900,000 EEK). The difference between the money paid and the 33% social tax is calculated from the sum of the price of the should be presented to the Tax Board. It should also be noted reduction amount is taxed. Income tax is (900,000- 160,000) car fringe benefit and the income tax calculated from it. Every that payment in installments does not free the taxable entity *21/79= 196,709 EEK. month social tax amounting to 1,671 EEK should be paid for from fulfilling current tax obligations. every car used as a fringe benefit (until December 31st, 2008 it Dividends based on dividends received from a resident company was 835 EEK). Social tax of a state which is a contracting party to the EEA Agreement or of Swiss Confederation for 10% minimum The minimum monthly amount from which social tax will participation are exempt from income tax. Up until December be calculated is 4,350 EEK and consequently the monthly 31st, 2008 the minimum participation margin was 15%. minimum social tax is 1,436 EEK. VAT This only concerns employers working under employment contracts and not contracts for services (members of the There are a lot of changes in management board or supervisory board). If an employee is the VAT Act, but in general employed by more than one employer and the salary from every the changes are more self- employer is less than 4,350 EEK, the minimum monthly social explanatory. tax should be paid by one employer only. And that should be made by the employer who is calculating the monthly tax free Work under guarantee is taxable amount from the salary payments. as of January 1st this year.

The minimum social tax should not be paid if the employment Value added tax rate 9% is charged on books, medication, relationship is cancelled (holiday, sick leave). However, periodical publications and accommodation services. Up to minimum social tax should be paid for a holiday period granted December 31st, 2008 the tax rate was 5% on these goods and without salary payment to the employee. services. DHL Estonia AS Betooni tn. 6 Tallinn 11415, tel. +372 680 8555, e-mail: [email protected] 14 15 The first 91 years

• Johan Laidoner administrated Viimsi Manor from 1929 until he was captured by the Soviet NKVD 1940. General Laidoner died in the Soviet Vladimir Prison Camp 1953. It would be wrong to say that the The first months of a new year are filled up with annual reports, world supported Estonia with massive reinforcements in terms comments on the year past and an outlook on the year to come. of troops, weapons and supplies during the War of Independence. From an Estonian and Swedish perspective the reports and But, Estonia was not totally alone. statements from our countries’ Central Banks, Eesti Pank and The greatest number of volunteers The Swedish Chamber of Commerce in Estonia came from Finland and additional Riksbanken, as well as the reports from the Swedish Banks volunteers also came from Sweden continues the tradition of celebrating Estonia’s and Denmark. Great Britain sent a dominating the Estonian financial sector are of special interest. Independence Day. This year a reception was naval squadron to Tallinn and USA arranged in cooperation with the German – Baltic helped Estonia with humanitarian General Johan Laidoner has taken a look at these reports and has added a Chamber of Commerce at the Estonian War Museum aid. summary on political signals and initiatives in Estonia, General Laidoner Museum in Viimsi Manor. Carl Mothander [see focus 4/08] and Einar Lundborg were Sweden and the international arena. two Swedish officers fighting for Estonia during the War of Indrek Tarand, the Director Independence. of the museum, gave life to Estonia’s dramatic first years Einar Lundborg had a short, but indeed Estonia of Independence, with a special very adventurous and colorful life. Born focus on General Johan Laidoner in Sweden 1896 he became an army • To cope with the current global and domestic stresses, • At the same time, the economic policy measures enacted or and foreigners fighting for officer 1916. His diary, other personal Estonia can look to strengths in its policy and structural announced by major economic regions should help the global Estonia during the War of documents and photos, are now kept at economy to overcome the difficult times. The possibility of frameworks, said IMF, the International Monetary Fund, Independence 1918 - 1920. Einar Lundborg Krigsarkivet – the Military Archives of economic growth rekindling faster than forecasted should not and the Estonian Sweden in Stockholm, telling the story in a statement following their December 2008 Staff be ruled out. • Aged seventeen, Johan Laidoner armouredvehicle of his fight for the ‘Whites’ in Finland Mission visit to Estonia. First among these strengths volunteered for the army 1901 Kalewipoeg 1918 and his fight for Estonia against is the fixed exchange rate, underpinned by the robust • The Estonian inflation has fallen rapidly. It will not exceed 2% and was stationed in Lithuania. Soviet Russia 1918 –1920. currency board arrangement. This should anchor price in 2009 and the price levels are not projected to rise in 2010, The following year he entered the either. expectations, leading to a sharp decline in inflation. military academy in Vilnius and Einar Lundborg survived both wars, returned to Sweden as continued his military education a Captain and picked up pilot training in the beginning of the • Many companies have changed their operating strategies at the Imperial Nikolai Military 1920’s. • Second, the banking sector and have brought prices and wages in line with the new market Indrek Tarand Academy in St. Petersburg. is well capitalized and almost situation. Rapid changes on the Estonian labor market have Einar Lundborg became the man who saved the Italian General entirely owned by Nordic groups taken place; employment has started to drop, flexible working • Laidoner returned to Estonia and took command of the First Umberto Nobile in the Arctic region 1928. Nobile’s airship Italia that benefit from supportive contracts are becoming more widespread, and nominal wages Estonian Division, part of the national independence army in had crashed on its way back from the North Pole and Lundborg stabilization programs in their have started to decline in some sectors. the Estonian War of Independence. In 1918 he was promoted to and his single engine Fokker aircraft was one of several units home countries. Commander in Chief of the Estonian Armed Forces. sent out for locating and rescuing the survivors of Nobile’s expedition. • Finally, Estonia’s labor and Estonian State Finances • After relinquishing his first period as Commander in product markets are flexible, which should help smooth the Chief 1920, Laidoner went on to chair several government Einar Lundborg’s efforts 1928 transition to recovery. • It is important that the committees, including the Estonian Olympic Committee. brought him international fame, and The Estonian Estonian Government his previous actions in the Estonian War Museum • The major policy challenge is the Estonian State budget, bring their expenditure • Resuming his duties as Commander in Chief 1924 – 1925, War of Independence were also General Laidoner concluded IMF in their statement. What is needed now is early in line with the changed Johan Laidoner took part in crushing an attempt by Estonian highlighted and described as a fight Museum action to achieve fiscal consolidation. economical environment. Communists, supported by the Soviet Union, to overthrow the for the right cause in international In Eesti Pank’s opinion, the Government on December 1st, 1924. media. A bit stunned, Einar Viimsi Mõis Government should decrease Lundborg wrote in his diary that this Mõisa tee 1 / Viimsi Eesti Pank: all expenditure components, • Johan Laidoner’s third period as the Estonian Commander sudden international attention for • Whereas the economies of including social expenditure; otherwise the State will not be in Chief lasted for six years, 1934 – 1940. In 1934, during Estonia’s cause came ten years too Open: Estonia’s main trading partners able to cover it in the next years. the international Great Depression, the Estonian League of late. Wed – Sat 11 am – 5 pm are projected to decrease 3% Liberators (Vaps) threatened Estonian political order with the on average, Estonia’s economy • In addition to the overall macroeconomic projection, it has launch of a radical right wing, quasi-fascist regime. To fend Aged 35, Einar Lundborg died may contract up to 9% per to be taken into account that resources for financing the fiscal off the efforts of the league, Laidoner reclaimed his position in a plane crash 1931. cent in 2009. The State and the deficit are also drying up. Although the Governments planned as Commander in Chief at the request of President Konstantin financial sector should step up expenditure cuts will improve the longer-term fiscal position, Päts who assumed emergency powers and together Päts and economic restructuring, says Eesti Pank’s opinion is that the following years’ expenditure is Laidoner froze all political party activity. Text: Megazine - Tallinn Estonia’s Central Bank, Eesti Pank, in their February 2009 not in line with the anticipated lower tax revenues. Economic Policy Statement. 16 17

• In addition, structural reforms necessary for more efficient isn’t successful in its attempts to cut the State budget with close Fiscal Policy Packages public management should be carried out. The main to one third. preconditions for attracting new investments are reliable public • Central banks and governments around the world have finances and a stable tax system further enhanced with the Following tough and late night Government discussions, a 8,08 reacted decisively to the financial crisis. Important measures adoption of the Euro as soon as possible. billion EEK State budget cut was finally announced February such as cutting policy rates and lending more money to the 12th. banking system have been taken. Governments have also • In light of the plan for an 8 billion EEK fiscal expenditure presented fiscal policy packages to help companies in crisis cut, our current projections expect this year’s deficit to form While no Estonian Minister was reported to back down from the and increase household demand. approximately 3% of GDP. However, it is still too early to assess obvious standpoint that the State budget cut was necessary, the full effect of the Government’s measures, since it depends discussions and heated arguments on the State’s income • The Riksbank has cut the repo rate by 1 percentage point to on the details of enacting the steps. For example, the actual sources, the taxes, continued. 1% and this policy interest rate may need to be cut slightly more impact of the health insurance fund and local government cuts over the coming six months. A lower repo rate and repo rate on the fiscal balance is still unclear. In addition, even more • Despite what Prime Minister Andrus Ansip thinks, the path is needed to counteract production and employment being adverse economic developments cannot be ruled out and thus Estonian tax system needs to be reviewed, said Ivari Padar, the too weak and inflation becoming too low. Mats Odell the government may be forced to make additional cuts. Minister of Finance in Estonia’s current coalition Government Sweden’s Minister for Local Government and Financial Markets and Chairman of Estonia’s Social Democratic Party, according The Estonian Financial Sector to Estonian media. The Estonian society needs a bigger amount Confidence billion, but participation in the programme is voluntary and at of collected money and I don’t exclude a single option in the the end of 2008 only an amount corresponding to SEK 150 billion • The financial sector should contribute to the economic Government’s ongoing tax discussions. • A fundamental cause of the financial crisis is the general had been used. restructuring and adjustment by providing companies lack of confidence. sufficient loan resources. • Everyone in the financial system benefits from stability, even if • It is difficult to predict when the measures taken will be able they do not share in bearing the costs, said Mats Odell, Minister • The capitalization and liquidity of the banks operating in Sweden to reduce uncertainty. It is possible that the problems will be for Local Government and Financial Markets. The Government is Estonia is good. The banks have expressed a readiness to prolonged, but there is also a now taking stock of what has been done and is considering more continue financing good business projects, although the steep Riksbanken: possibility that optimism may measures if needed to make the financial market more stable. economic deterioration and tightening credit conditions have increase quickly and confidence Stability in the Swedish financial markets would benefit both the made it more difficult for borrowers and lenders to come to an Sweden’s Central Bank, returns sooner than expected. actors in the market and the economy as a whole. agreement. Riksbanken, presented The stimulation packages a mixed outlook on 2009 and measures that have been To protect Swedish savers, the State’s deposit guarantee has • Although a certain decline in corporate debt burden is in their Monetary Policy introduced in various countries been raised from SEK 250 000 to SEK 500 000. completely natural in the current economic environment, it can Report, February 11th. might have a quick impact with be seen that the financial sector’s willingness to take risks has the result that international On the European scene the Swedish Government has proposed dropped too much and banks have overreacted to changing • The downturn in the economy now looks as if it will be even growth recovers more quickly. the Parliament to vote for a Swedish participation in raising circumstances. This may hinder the necessary economic worse than was thought in December. Swedish exports and EIB’s - the European Investment Bank’s available capital. The restructuring. export orders have fallen dramatically and the number of • When confidence is restored raise of capital would enable EIB to lend out a further 167 billion redundancy notices remains high. on the financial markets and Euro, primarily to investments in infrastructure and small • Eesti Pank believes there is no need for extensive state the situation normalizes, some enterprises. EIB predicts that this raise of capital will cover the intervention in the functioning of the financial system. • However, the weaker economic of the banks will increase their need of credits given by them up until 2015. activity has also led to the lending to households and companies again. The companies will • It is important to bear in mind that the external environment oil price falling further since begin to invest and the demand for labor will increase. When • The raise of capital in EIB means that Sweden’s guarantee has changed the future outlook for many business areas. December, which contributes to the situation on the labor market improves, the households will to this investment bank will increase with 1,9 billion Euro to a Therefore, in addition to short-term financial support, it is a lower inflation rate. Inflation become more optimistic about the future. The households will total of 6,6 billion Euro, said Mats Odell. The presumptions are essential to restructure companies by, for example, merging measured in terms of the CPI reduce their precautionary saving and will consume more again. however good that this guarantee will not need to be claimed. them or changing the ownership structure. Neither state (Consumer price index) will fall support nor the financial sector must prevent these processes very rapidly in 2009. This is largely due to the rapid interest rate from taking place. Possible state cuts at the end of 2008 and the beginning of 2009. With effect Outlook intervention has to be clearly from 2011, when the interest rate is expected to be raised again, The Banks limited to abolishing market CPI inflation will rise substantially. If the effects of changed • The economic prospects are unusually uncertain at the failures. In Eesti Pank’s estimate, mortgage rates are excluded, CPI inflation will develop in a moment. For example, it may take longer time before the According to reports in Swedish financial media, credits given by this may temporarily increase the more stable manner and be close to the target of 2% at the end financial markets function as they should, but the effects of an Swedish banks in the Baltic States amounts to 318 billion SEK, volume of the measures applied of the forecast period. expansionary economic policy may also come sooner and be equaling some 10% of the total local Swedish credit volume. (export guarantees, etc.), but stronger than in the main scenario. the central bank sees no need • Since the financial crisis intensified in September 2008, In a January 20th article, Gunnar Örn, an economic to finance the financial sector by Sweden’s trade weighted exchange rate has weakened • The future direction for monetary policy will depend on how commentator in the Swedish financial newspaper Dagens additional measures. considerably and the Swedish Krona remains weak. The precise new information on economic developments abroad and in Industri, highlighted a 2008 report from Standard & Poor’s reasons for this are not clear, but small currencies do tend to Sweden will affect the prospects for inflation and economic saying that Swedish banks are now so dominating on the Baltic weaken in times of financial unrest. activity in Sweden. credit markets that they de facto could function as central The Estonian banks. Economical Policy Arena • Normally a weakening of the exchange rate has a positive Swedish Politics • The increased amount of credits given in the Baltic States has This winter’s debates and effect on exports. As demand not gone to investments for building up competitive businesses discussions in Estonia’s coalition is now falling sharply in the Since the autumn 2008 the Swedish Government has presented there, wrote Gunnar Örn. An increasingly bigger share has gone Government and in Riigikogu, rest of the world, there is a several packages in response to the economic downturn. The for financing an extensive private consumption. Estonia’s Parliament, have risk that the positive effects on initiatives are related to jobs as well as entrepreneurship, focused on the State’s finances. growth will not be as great. A research and infrastructure for the future, as well as Credit losses for Swedish banks on the Baltic market are weaker exchange rate usually continued investments in welfare provision. To create increasing. However, according to a so called stress-test made Estonian media recently quoted also means that imported goods are more expensive, which stability and confidence in the Swedish financial markets, the by Riksbanken during the autumn 2008, a worse scenario loss Erkki Raasuke, Swedbank’s entails higher inflation, but this effect is partly counteracted by Government also proposed a new Act enabling aid to credit would still be possible for the Swedish banks to handle. former Head of Baltic Banking, lower cost pressures and resource utilization during the forecast institutions at short notice. as saying: Estonia will get close period. • Things have changed for Swedish banks, both on the home to bankruptcy if the Government State guarantees are available up to a maximum of SEK 1 500 market and abroad, commented Mats Andersson, a Swedish 18 19

independent bank analyst. A bigger share of their credit organic growth strategy. However, we are preparing for another A European exception is so far Austria who managed to keep but also for real people, who volumes now go to business investments. The banks are challenging year by bringing down the speed of the execution of its nose above the water with a GDP growth of 0,3% on a yearly have lost their pensions, their actually doing what Anders Borg, Sweden’s Minister for Finance, the strategy and by giving cost, risk and capital management top basis. homes or their jobs, said Klaus have asked for. priority. Schwab, President and founder of the World Economic Forum, USA in his 2009 opening speech. They feel bewildered, confused, President Barack Obama’s US crisis package finally got scared and angry. They may not approved in February by both the Senate and the Congress. understand what went wrong but they are clear that their Swedbank reported a strong profit 2008 despite the Valued at 790 billion USD and known as the stimulus bill, the leaders have let them down. turbulent market. package provides money for a wide variety of purposes; tax They now look to those leaders cuts, tax credit for home buyers as well as investments in – corporate, political and The 2008 profit amounted to SEK 10 887m (11 996 in 2007), infrastructure, education and energy. societal – not only to say sorry excluding goodwill write-offs the profit was SEK 12 290m. but to repair the damage to Goodwill related to Ukrainian Banking was written off by SEK 1 According to their families and communities. Klaus Schwab 403m to SEK 1 150m. This write-off did not affect the cash flow President Obama or the capital adequacy. the package will • Gathered here in Davos are many of the world’s most secure 3,5 million influential leaders, continued Klaus Schwab. We cannot Provisions for loan losses amounted to SEK 3 156m (619), jobs and provide sidestep our responsibility to work together to rebuild shattered corresponding to a loan loss ratio of 0.28 percent (0.07). a cushion in the economies and institutions. To be concrete, here are the five ongoing economic specific objectives for us to achieve: • Swedbank is well prepared for the economic downturn, said recession that the Jan Lidén, Swedbank’s President and CEO, in a comment. Our President predicted • First, we will support governments in their efforts to address emission last autumn brought in 12,4 billion SEK and we are would become the systemic risks in the financial systems to stabilize and taking special precautions for credit losses that might happen a “deepening relaunch the economy. In this respect, the financial community, on our home and foreign markets. disaster” without which is well represented here and which will remain an Photo: Bengt Wanselius the stimulus. essential factor of economic growth, is not only part of the problem, but is also an indispensable part of the solution. SEB reported a 12 471Mkr profit 2008. The US stimulus Handelsbanken’s 2008 report was a sign of strength said bill comes on top • The second objective is to make sure that we look at our world • In a year of unprecedented Swedish financial analysts, also noting that the bank’s of the 700 billion in a holistic, systemic way. turbulence we have continued credit exposure in the Baltic States is more or less none USD financial to generate income growth, existing. rescue plan for • The third objective is to start a year-long process to help reflecting a solid customer banks approved design the systems and institutions that the world needs to business, commented 2008 operating profits amounted to SEK 15,326m (14,732 in last fall, as well as really cooperate and to confront global challenges in a much SEB’s President and Chief 2007) and profits after tax for total operations amounted to SEK 400 billion USD that must be approved to keep most federal more proactive way. Executive Officer Annika 12,131m (15,508). Loan losses amounted to SEK -1,605m (-27). agencies running for the latter half of fiscal 2009 and an Falkengren. With the proposed undetermined amount from the Federal Reserve to continue • The fourth objective is to better shape the ethical value capital measures to further • The international credit market was negatively affected shoring up the financial system. base for business, highlighting a clear differentiation between strengthen our capital base, during the past year by the financial crisis, commented Pär industrial and service companies that provide true value to SEB is well equipped to Boman, Handelsbanken’s President and group chief executive. society and those that make money through paper transactions meet the challenging macro- Nevertheless, Handelsbanken was still able to report good World Economic Forum 2009 and speculation. Profit is a major driver of business, but it is economic conditions.” liquidity in the fourth quarter. The inflow of deposits remained clear that it cannot be profit at all costs and that self-indulgence strong from both households and credit institutions. • I am leaving this valley of cannot replace reasonable competitive remuneration. • The increased net credit losses reflect the current macro tears following two round economic situation and to a large extent the development in the clock days of talks and • The fifth objective is to reconstruct the global economy. What the Baltic countries, but the losses remain to a high degree Europe meetings, wrote Sweden’s the world needs most today is integration and cooperation. We provisions rather than losses. Minister for Foreign Affairs will never meet the challenges if we want to do it all alone. • Though many say that USA Carl Bildt in his blog as the is the centre of the economical World Economic Forum 2009 • To say that these days in Nordea also reported solid 2008 performance despite a crisis, it is more dramatic in ended in Davos February 1st. Davos showed a clear path rapid economic slowdown. Europe right now, says Jan forward would be a substantial Häggström, chief economist • Thirteen months have passed exaggeration, concluded Carl The operating profit amounted to EUR 3,396m (EUR 3,883m in at Handelsbanken. There has since the economic downturn Bildt in his blog. Uncertainty 2007). been a dramatic downturn in started and the last three – four has dominated the discussions. the German industry and the months have seen a collapse Photo: Platitudes that basically • I am proud that Nordea can report strong results for 2008 building construction sector seldom seen before, continued Johannes demonstrate ignorance have based on solid performance in all customer areas, despite the suffers all over Europe. Carl Bildt. The total losses Jansson been too much present. Many of financial market turmoil and global economic recession, said in the global credit systems the talks have been tentative. Christian Clausen, President and Group CEO of Nordea. Loan Germany is not in a recession per definition but the GDP are now estimated to 2 200 Carl Bildt Davos losses increased as expected following the economic slowdown development landed at minus 1,7% for the fourth quarter 2008 billion USD. And all possible and they will remain at a high level in 2009. compared to one year earlier and it was a steep downturn and impossible thoughts on how to fill this gigantic black hole • Yet, everybody knows that every crisis turns around and has compared to the third quarter 2008. France ended up with a are circulating. But maybe even worse than this is the massive an end. The world or the global economy is most probably • Even in the very difficult fourth quarter 2008, our profit before minus 1% GDP growth during the fourth quarter compared to decline in demand on the global economic markets due to the not facing an immediate doom. But how will the turn around loan losses reached one year earlier. lack of confidence that has developed during the last months. happen? And when will it happen? And how will the post crisis the highest quarterly world look like? result so far. Our A recession is however a fact in England, Spain, Italy and the • Today, people from every corner of the globe ask how it ambition on a Great Netherlands. All four countries have shown a declining GDP was possible that decisions could be taken, led by greed or Nordea remains for two consecutive quarters which is regarded as a common incompetence and with no effective oversight − decisions that and we continue the definition on a recession. had terrible consequences, not only for the global economy Research and texts: Megazine - Tallinn 20 21

Is it really so? Should Estonia The author of the article, Lenina Rautonen - be happy in the role of an Senior Relationship Manager of the Estonian branch of efficient subcontracting Danske Bank A/S - is also the Baltic correspondent for unit of Sweden and Finland Taloussanomat, a Finnish business newspaper. Her regular and nothing else? And after blogs cover the economic and business as well as everyday a painful but necessary life in the Baltics though the eyes of an expatriate. Joakim Helenius on the adjustment period Estonia’s Her Finnish language blogs can be read at future shall be bright in the http://blogit.taloussanomat.fi/baltia/ future of Estonia long run. Lenina Rautonen

Recently Joakim Helenius, main owner and CEO of Trigon Capital, gave a speech at a SCCE/DECC Business Lunch in Tallinn. Lenina Rautonen, Senior Relationship Manager Alf Vanags on the economy of the Estonian branch of Danske Bank A/S, reports for Two years ago, Alf Vanags, Executive Director at the Baltic International Centre for Economic Policy Studies (BICEPS), made a presentation at a SCCE Joakim Helenius talked wisely about this year’s possibilities Business Lunch in Tallinn. Titled ‘Is the party over?’, Alf Vanags concluded and outlook. According to Helenius the world can recover from that the Baltic States were somewhere between the party and the after party at that time and that there will definitely come a time after the after the current credit crunch very quickly and before we notice, party as well. a new boom will start. I have in many cases noticed that it is In this February 2009 article written for , Alf Vanags takes a closer look worthwhile to carefully listen to certain people, as they discover at the current economic situation in the Baltic States. the weak signals first. Joakim Helenius After the party …. the bill.

Helenius boosted positive attitude. “2009 will be difficult, It is now well and truly understood that the boom in the Baltics but at the same time this will be the year for companies to is over and, that far from managing a soft landing we appear concentrate on their core competences and to prepare for future growth. Desperation takes businesses nowhere.” to be in the process of a crash landing. Latvia has already received a financial assistance package of 7.5 million Euros Undoubtedly we can agree with all of the above, but still from the IMF, the EU and various individual countries. Estonia the most interesting part of Helenius’ speech came at the and Lithuania are rumoured to be close to the need for similar end, when he answered a well-known question raised from assistance. the audience: “Where can Estonia find its own Nokia?” Apparently here in Estonia, wherever you go, everybody is Where do we go sectors that will underpin the next boom. Indeed the creative always feverishly looking for the country’s very own Nokia. from here? Nearly a destruction of the downswing is a prerequisite for the new hundred years ago upswing. According to Helenius Estonia should cease the search for According to Helenius, Estonia is way too small to have Joseph Schumpeter, its own Nokia. If an Estonian Nokia is found, great, but this the critical mass to be an independent actor and product the Austrian would only happen by pure coincidence and luck. Estonia developer. There is no point in admiring capital intensive economist and A bill to be paid should instead focus on being a business-friendly integrated Sweden and Finland and use them as examples, because student of capitalist subcontracting partner to Sweden and Finland, offering low the Swedish and Finnish economies have developed around development, wrote So this is where we are and what we can expect. In the taxation rates. large, capital intensive companies. There is neither capital nor large companies in Estonia. There is no need for them in his book ‘The meantime there is a bill to be paid for the excesses of the either. Instead, Estonia should look for ideas from Denmark, Theory of Economic boom and here in the Baltic States we are beginning to pay a country filled with a lot of small companies. Today, Finland Development’: “every and pay a lot. In Latvia the official forecast for GDP growth in is struggling with over-investments in the forestry sector. boom is followed by depression, every depression by a 2009 is minus 12% and many observers believe this may be According to Helenius, too much capital is not always a good boom”. The first part of this proposition was ignored to their optimistic! Registered unemployment in Latvia reached 100 thing. cost by businessmen, bankers and above all policy-makers, 000 in the last week of February (double what it was a year including these in the Baltic States, during the boom of ago) and could rise to 200 000 or 250 000 through the year. But how can Estonia become prosperous, if the profits go recent years. The second part of the statement offers some to Sweden and Finland and Estonia only gets the income comfort that there will be a light at the end of the tunnel, At various times over the last two years I have suggested through salaries? that there will be a recovery, indeed surely another boom. that even for Latvia and Estonia there may come a time when policy makers recognize that devaluation of the national The Danish example shows that reasonably high incomes currency has emerged as a good policy. It seems to me that are enough to make a country prosperous. Denmark’s GDP Creative destruction such a time is just about here as the Baltic States collapse per capita is higher than in Sweden or Finland. After a into deep recession. Why is devaluation now a good policy? reasonable time period has lapsed, Estonia will get wealthier Schumpeter also identified a process on which the recovery Today we are faced with collapsing exports and rapidly rising and it does not matter if the profits flow to the Swedish and will be founded. He called it ‘creative destruction’. This is unemployment of both people and capital and a devaluation Finnish owners. the process by which the unsustainable businesses of the of the currency would at one stroke make the production of previous boom (real estate, financial innovation in our case) domestically produced goods and services more profitable are weeded out and replaced by innovative enterprises/ i.e. production for export would be more profitable and 22 23 exports would be more competitive and production that When Sweden and Finland substitutes local goods for imports would be more profitable. This would help to promote the recovery in a way that recover, so will Estonia improves external balance. Arbitration As a follow up on their Economic Policy Statement, As commerce and trade have Apart from the SCC Moreover if we look around us many neighbouring currencies Eesti Pank hosted a March 5th presentation in the become more and more Institute Rules the Institute have substantially depreciated against the Euro and hence bank’s Independence Hall for the members of the has adopted Rules for A brief Swedish internationalized, the need Expedited Arbitrations, Arbitration timeline against the Baltic currencies: in Eastern Europe in the past Swedish, German and British Chambers of Commerce of solving business disputes Insurance Arbitration six months the Polish zloty has dropped 29 percent against in Estonia. the euro, the Hungarian forint by 22 percent, the Romanian on the international arena Rules, Procedures and Services under the United 1359 leu by 17 percent and the Czech koruna by 13 percent. The • Following 15 years of a very fast economic growth, three has grown. Over the past few decades the Arbitration Institute of the Stockholm Nations Commission on Provisions concerning Ukrainian hryvnia has plunged by 38 percent since August. In major negative shocks have appeared in Estonia, said International Trade Law arbitration appear in Swedish Western Europe too the British pound and the Swedish crown Ülo Kaasik, Eesti Pank’s Head of the Monetary Policy Chamber of Commerce has emerged as one of the (UNCITRAL) Arbitration legislation have depreciated sharply against the euro. Department. In addition to the global financial crisis with leading arbitration institutes in the world. Rules and Mediation Rules This makes Baltic goods extremely uncompetitive at higher interest rates and tougher credit conditions, we got 1887 current exchange rates and the policy of so called ‘internal an oil and food price shock during the first half of 2008. There is an increasing The first Arbitration Act is devaluation’ that is being pursued in Latvia is both expensive And now we can also see a decreased demand for products • A Chinese company wants a Chinese Court, an American interest in mediation as adopted in terms of unemployment and wasted resources and very and services produced in Estonia. company wants an American Court and in a situation like that an alternative dispute resolution mechanism to likely lengthy. By contrast the exchange rate instrument Stockholm is a good alternative in between the companies 1917 concerned, said Gao Xiqing, Investment Manager at China litigation and arbitration. The Arbitration Institute of changes incentives ‘at once’ and mitigates at least in part • Estonia was indeed Investment, in a recent interview. the Stockholm Chamber of the employment consequences the recession. in need of a correction The SCC Mediation Commerce (SCC Institute) is in the economy and The Arbitration Institute of the Stockholm Chamber of Institute was established established What about the argument we can now see that Commerce (SCC Institute) is a separate entity within the in 1999 and the SCC BICEPS that a devaluation will lead to the housing sector has Stockholm Chamber of Commerce and was established in 1917. Mediation Rules offers an 1929 payment problems for people frozen, the loan growth efficient dispute resolution Sweden ratifies the Geneva who have taken out loans in has diminished and the 1977 marked a break through for the SCC Institute in Stockholm to parties not wishing to Protocol of 1923 and the Euros? My response here is; real estate prices have as it was recognized by the United States and the Soviet engage in formal arbitral Geneva Convention of 1927. A would you rather have a larger decreased, all in a fast Union as a neutral center for the resolution of East-West proceedings. new Arbitration Act is adopted trade disputes. Since then the SCC Institute has expanded its replacing the 1887 Act. The Act nominal debt but a job and a pace since 2008. services in international arbitration to more than 40 countries. In mediation a sole Concerning Foreign Arbitration wage with which to service the Following the 1991 collapse of the Soviet Union many arbitration Mediator is appointed, Agreements and Awards is debt or an unchanged nominal • It might be so that processes involved companies and organizations located in unless otherwise agreed by adopted debt but no job and wage? the banks are too tough former Soviet Republics and no longer recognizing contracts the parties. The Mediator in their credit policies drawn up during the Soviet era. may be appointed by the 1976 The Baltic International Centre My guess, and it is a guess and right now and maybe parties jointly, or by the The SCC Institute adopts new for Economic Policy Studies not a prediction, is that some good and sustainable Under the SCC Institute’s Rules three arbitrators are appointed, SCC Mediation Institute. rules, the first particularly (BICEPS) is an independent time in the nearest future businesses don’t get the unless otherwise agreed by the parties. Each party appoints aimed at international research centre located at the there will be a substantial credits they need. Fewer one arbitrator and the SCC Institute the third who will act as The time limit for the arbitration Stockholm School of Economics Chairperson of the Arbitral Tribunal. Mediation is two months, coordinated devaluation of loans are provided, in Riga. unless otherwise agreed by 1988 all three Baltic currencies, especially to the building There is no list of arbitrators but the parties. The Rules of the SCC Institute BICEPS’ aim is to undertake coordinated very possibly by and retail sectors, but, it the parties may appoint any person After having reached a are revised for the purpose of and promote high quality policy- the EU and possibly supported Ülo Kaasik is important to note that of any nationality as arbitrator settlement agreement, making the arbitral procedures oriented research in economics by additional financial lending has not stopped. as long as he or she is impartial the parties may agree further international and other social sciences and assistance. and independent. The parties may to appoint the Mediator to provide informed advice and Answering a question from Rein Leipalu, Managing be represented or assisted by as arbitrator in order to 1999 consulting services for both Director at RagnSells Estonia and a member of SCCE’s any person of any nationality in enable him to confirm the The Mediation Institute of government and business in the Council, on Latvia’s impact on the Estonian economy Ülo the proceedings. The parties are settlement agreement in the Stockholm Chamber of Baltic States and elsewhere. also free to agree on the seat of an arbitral award. Commerce is established and Kaasik said: arbitration, the language to be used the Rules of the SCC Mediation The Centre started its operations in the proceedings and the law or The SCC Institute has a Institute are adopted. in 2001 with the help of a grant • Estonia is not so closely connected to Latvia as people Ulf Franke the rules of law to be applied to the Board of 12 Members from the Swedish Foreign tend to believe. Estonia’s main partners in terms of Secretary General substance of the case. and a Secretariat with Ulf 2007 Ministry and with assistance commerce, trade and investments are Sweden and of the SCC Institute, Franke as the Secretary SCC Institute adopts new from the Stockholm Institute of Finland. When these two countries start to recover, so Stockholm The arbitrators act on the basis General. Ulf Franke is Arbitration Rules. No Transition Economics (SITE) and will Estonia. of presentations - both oral and also President of the fundamental changes was has developed to become a of an The Arbitration written submitted by the parties and International Federation been made to the 1999 Rules integrated network of research • Nobody can tell when the recovery from the current Institute of the the award shall be given within 6 of Commercial Arbitration and the main objective of this centres and universities in the Stockholm Chamber months. Institutions and former revision was to create truly global financial crisis will start to happen, concluded region with partners in the Baltic of Commerce Secretary General of the international arbitration rules, Ülo Kaasik. The only thing we can be sure of is that the States, Sweden, Russia, Poland Box 16050 The current SCCI Institute International Council for which are easily accessible and Ukraine. recovery will happen and the world will not be the same SE-103 21 Stockholm Arbitration Rules entered into Commercial Arbitration and comprehensible to in terms of financial systems and instruments after this Sweden force January 1st 2007 and most (ICCA). international users, and BICEPS has an especially close crisis. Tel: (+46) 8 555 100 50 arbitrations administered by the which in all respects meet collaboration with the Stockholm Text: Alf Vanags, Fax: (+46) 8 566 316 50 SCC Institute are conducted in the demands of international School of Economics in Riga and Executive director at the Baltic Report: Megazine - Tallinn [email protected] accordance with these SCC Institute Research and text: commercial arbitration of some of the Centre’s researchers International Centre for Economic www.sccinstitute.com Rules. Megazine, Tallinn today. are also lecturers at the school. Policy Studies (BICEPS), Riga. 25

Enjoy our fast and

convenient non-stop fl ights went to Stockholm to fi nd out more about the potential for foreign investments in Sweden. The tour went on back to Estonia and visits to SCCE members in Tallinn and Pärnu.

Invest in Sweden Agency Tallinn investment process, said Geetali Chhatwal Jonsson, Head of • Invest in Sweden Agency (ISA) is the Swedish ISA’s Market Unit Sweden. These attributes help us to ensure Government agency assisting and informing professional guidance for successful business launches in foreign investors about business and investment Sweden. opportunities in Sweden, said Bengt-Åke Ljudén, Foreign Direct ISA’s Director International Marketing & Sales, as Cleantech – Investment shares a major project on ISA’s agenda in Estonia from FICE focus met him and his colleagues in Stockholm. Countries (Foreign a • February 24th this year, Stockholm Investors Council in ISA is one of a number of agencies belonging in the Swedish won EU’s green capital award and Estonia): Gothenburg Ministry for Foreign Affairs’ area of activities. Among them, became the fi rst city to be named and in addition to ISA, the National Board of Trade, the European Green Capital, told Geetali Sweden 39,0% Swedish Export Credits Guarantee Board and the Swedish Chhatwal Jonsson. Stockholm will Finland 24,7% Institute. ISA is headquartered in the World Trade Center now be the European Green Capital in The Netherlands 6,3% For more information and reservations please contact building in downtown Stockholm and has the head offi ce of the 2010, followed by Hamburg in 2011. Norway 3,9% Swedish Trade Council as a close neighbour. Denmark 2,8% your travelagent or visit www.cityairline.com „Four out of fi ve Europeans now live Great Britain 2,2% • To a large extent free of charge, we in urban areas, and that is where Germany 2,1% and our regional and international the environmental challenges facing USA 1,4% network provide information and our society are most apparent“, said Austria 0,9% assistance to companies planning EU’s Environment Commissioner to establish or expand business Stavros Dimas as he announced Direct Investment shares operations in Sweden, continued the winners. „ With their measures from Estonia to FICE Bengt-Åke Ljudén. Some examples on to tackle air pollution, traffi c and Countries: our services include information on congestion levels, greenhouse gas business and investment opportunities emissions, and waste and waste Finland 4,7% Bengt-Åke Ljudén in Sweden, tailor-made information water management, Stockholm and Great Britain 1,2% and practical advice on how to proceed Hamburg can act as role models for Sweden 0,7% when setting up a business in the rest of Europe.” Norway 0,6% Sweden and introductions to relevant Germany 0,4% contacts among Swedish authorities, • Sweden is a leader in both The Netherlands 0,2% utility providers and professional cleantech practice and innovation, Denmark 0,1% service companies. Furthermore, with opportunities for foreign USA 0,1% assistance in fi nding and arranging investors in numerous technology Austria 0,0% visiting programs to the most suitable fi elds, continued Geetali Chhatwal locations in Sweden and support Jonsson. A welcoming attitude can be [Note: Topping the list of in fi nding companies for possible expected, Swedes are used to working Direct Investment shares joint ventures or other forms of together in different ways to develop from Estonia are Latvia cooperation are also vital services and test new technology and services. 33,3%, Lithuania 28,0% and provided by us. Cyprus 9,1%] • Cleantech involves a number • The vast majority of us working of business and investment Source: here at ISA, has a background in the opportunities for foreign investors. Eesti Pank (fi gures as per corporate sector and expertise in the Geetali Chhatwal Jonsson Among them Bioenergy, Biofuels September 30th, 2008) www.cityairline.com

5335 SCCE Estonia.indd 1 08-12-01 09.43.01 26

for transportation, Environmental engineering on natural resources exploration, Green chemistry, Heating, Ventilation Invest in Sweden Agency • The secret is Goodyear’s new SmartWear Technology, which and Air Conditioning technologies. There are also a number P O Box 90 makes it possible for OptiGrip to retain excellent performance of opportunities available within innovative technologies for SE-101 21 Stockholm, Sweden even when it’s worn, because new grooves and new compound Sustainable Building, Waste and Recycling as well as Water appear as the tyre wears down. As the tire tread wears down, and Wastewater handling. Visiting address: hidden channels below the tread surface are revealed to World Trade Center facilitate efficient water evacuation, enabling the worn tire • We believe Sweden provides an environment ideally Klarabergsviadukten 70 B6, Stockholm to retain its resistance to aquaplaning. The dual-layered suited for the development and testing of new cleantech Phone: (+46) 8 402 78 00 compound ensures high levels of grip and control on wet roads technologies, concluded Geetali Chhatwal Jonsson. We have Fax: (+46) 8 402 78 78 during the tire’s entire lifetime and the performance on dry set up an extensive Cleantech contact network including E-mail: [email protected] roads is ensured with Goodyear’s research organizations as well as innovative companies, www.isa.se 3D interlocking mechanism. mature firms and advanced test environments now available for interested foreign businesses and investors. • Our second new summer tire was launched at the Geneva In today’s internationalized business Motor Show in March this year, environment local market expertise in told Hindrek Pikk. It’s the accounting, auditing and tax consulting is not Goodyear EfficientGrip, the first More miles for the money and a green new summer tire ever that has enough. Rödl & Partner opens the gates both to passed the tough demands for the national and international marketplaces with grip on the roads getting the Nordic Ecolabel, also 2750 experts employed at more than 80 offi ces known as the Swan label! The Nordic Ecolabel in 38 countries around the world. • Consequently we have to focus on • Of all tens-of-thousands of the market that exists and we are The Nordic Ecolabel – the Personal Service launching two new products for the parts that all together make a Swan label - is the official You always cooperate with one and the same car, we represent the only four upcoming summer tire season. ecolabel for the Nordic • One of the two new summer tires is countries, introduced by the person at Rödl & Partner. being in contact with the road, the Goodyear OptiGrip, revealed Marek Moorus. Independent Nordic Council of Ministers said Marek Moorus, Sales tests have shown that the OptiGrip not only delivers more in 1989. The Swan was Full service Manager at Goodyear Dunlop mileage for the money, it chosen as a symbol and it is Being entrepreneurs ourselves, we fully Tires Baltic, as focus visited also continues to deliver safe a variation on the logotype understand our customers need to focus on their performance throughout its of the Nordic Council of the company’s Tallinn office. business core values. long lifetime. Ministers. The goal is to promote a more sustainable • Tested against two leading consumerism with the goal Rödl & Partner is a one-stop service • Together with colleagues in Sweden, Marek Moorus competitors by TÜV SÜD of creating a sustainable organization: Denmark, Finland, Iceland, Latvia Automotive, the test results society. - Auditing and Lithuania, our Estonian team form the Nordic Region showed that at 10.000 km - Accounting within Goodyear Dunlop’s global organization, continued Marek driven, OptiGrip delivers a 5% The Nordic countries work - Tax Advisory Moorus. Our Tallinn based organization also acts as a centre shorter braking distance in the together using the Swan - Legal Services for our pan Baltic and Finnish business, wet. At 20.000 km OptiGrip has Ecolabel. This work is co- Goodyear Dunlop since our order- and tele marketing- better aquaplaning resistance The Green Grip, ordinated by the Nordic Nordic team for these countries is based here. than brand-new competition. Goodyear EfficientGrip Ecolabelling Board, NMN, Global service Hindrek Pikk And – at 30.000 km the tire has which has produced a Rödl & Partner is present where business is Goodyear Dunlop • Both the Goodyear and the Dunlop 20% shorter braking distance • Some of the most important set of regulations. NMN present and we speak the language of our Nordic is a business brands was on the Estonian and Baltic in the wet, retains twice as much control on wet and has 6% tire demands for getting the determines which products clients. unit for eight Nordic markets during the first Republic, told better aquaplaning resistance. Nordic Ecolabel include low can be covered by the Swan and Baltic countries, Hindrek Pikk, Goodyear Dunlop Baltics’ rolling resistance for reducing and the criteria they must with its head office in Market Communication Manager. the fuel consumption, low noise meet. Decisions taken Estonia Lithuania Stockholm. In connection with the regained levels and the tire should be by NMN must always be Roosikrantsi 2 Tilto Str.1/2 independence 1991 the two brands made built of environmentally sound unanimous. EE 10119 Tallinn Vilnius 01101 The company has 120 a strong comeback and as Goodyear raw materials. Furthermore, Tel: (+372) 68 05 620 Tel: (+370) 5 212 35 90 employees, with 20 and Dunlop formed a global joint the production process should Groups of experts from the e-mail: [email protected] e-mail: [email protected] persons working in the venture 1999, our Nordic head office in be environmentally adapted, the Nordic countries develop www.roedl.lt www.roedl.ee Baltic countries. Stockholm decided to form Goodyear tire should be fully suitable for proposals for criteria. The Dunlop Tires Baltic as a daughter recycling. And, of course, a Nordic group representatives The company’s own company in 2001. Ecolabeled tire should deliver safe come from government, Latvia Global Headoffi ce tire tests are partly performance and a long lifetime. environmental organisations, K.Valdemara iela 33 Äußere Sulzbacher Straße 100 performed in northern • Today we have a solid position as the trade and industry. Before Riga 1010 Nürnberg 90491, Germany Finland and Sweden. leader in our business and we account • There are great environmental NMN finalises the proposals, Tel: (+371) 67 334 280 Tel: (+49) 911 91 93-0 e-mail: [email protected] e-mail: [email protected] Goodyear Dunlop is for a 30% share of market in Estonia benefits to gain from within the they are sent out for review. www.roedl.lv www.roedl.de one of the world’s making us the biggest actor here, said transport sector as a whole, said biggest tire companies Marek Moorus. We don’t expect the Ragnar Unge, Nordic Ecolabel’s The Nordic Ecolabel now with 70.000 employees current economic downturn to change Managing Director in Sweden, covers 67 different product Rödl & Partner International: Germany (Head Offi ce), and 60 plants in 26 this ranking but, we do expect a sharp Photo: Nordic Ecolabel as Goodyear received the Swan- groups, for which it is felt Austria, Belarus, Belgium, Bosnia and Herzegovina, Brazil, countries all over the recline in the overall Estonian tire label certificate at a February that ecolabelling is needed Bulgaria, China, Croatia, Czech Republic, Estonia, France, Hungary, Hong Kong, India, Indonesia, Italy, Latvia, world. market. January 2009 figures points 19th ceremony in Stockholm. We and will be beneficial. The Lithuania, Malaysia, Moldova, Poland, Qatar, Romania, at 60% less tires totally sold in Estonia Dario Vicario, Ragnar Unge, started to Ecolabel vehicle fuel Nordic ecolabel checks that Russia, Singapore, Slovakia, Slovenia, South-Korea, Spain, www.goodyear.ee compared with January last year. Goodyear Dunlop Nordic Nordic Ecolabel last autumn and tires are another products. Sweden, Switzerland, Thailand, Turkey, Ukraine, United Arab Emirates, United States, Vietnam 28

product group where the Ecolabeling can make a big difference. • As for Estonia, Linstow owns The more people choose these Ecolabeled products, the greater three hotels in Tallinn, all benefits for the environment. under the Reval flag. These are the Reval Hotel Olümpia, • Goodyear EfficientGrip has some 15% lower rolling resistance the Reval Hotel Central and than other tires with equivalent performance characteristics, the Reval Park Hotel & Casino. said Dario Vicario, Managing Director at Goodyear Dunlop Reval, the hotel’s operator, is Nordic, as he received the Ecolabel certificate. This means that a subsidiary of Linstow and in EfficientGrip consumes less fuel making it cheaper to drive and addition, Linstow AS also owns better for the environment. If every Swedish car should drive on the Ülemiste shopping centre Goodyear EfficientGrip the emissions of CO2 should decrease next to Tallinn airport. The Tallinn’s Reval Hotel Olümpia with an amount equal to the emissions from 120.000 cars centre is operated by Linstow – the venue of many seminars during a year. Center Management. and meetings for the Swedish Chamber of Commerce in Estonia - an ideal place to combine business with • Our company has spent a lot of resources within R&D to pleasure and active vacation! develop OptiGrip and EfficientGrip, concluded Marek Moorus • The main markets for Reval and Hindrek Pikk. As for EfficientGrip it is especially important Hotels are found in Finland, Strand SPA & Conference Hotel**** to note that it does not only take a green grip on the roads, Sweden, Norway, England, invites you to hold a conference in Pärnu, Estonia! EfficientGrip is also a brand-new high-performance summer Germany and the Moscow tire delivering excellent wet braking performance combined area. Russia as a whole and The biggest Conference Hotel in Pärnu, Estonia! with high mileage. Poland are growing markets • Summer capital Pärnu is located in north-western part of Estonia and through general sales • 7 different conference halls (860m² of exhibition area- the agency agreements, we have biggest conference hall accommodates up to 500 people) local sales and marketing Kristiina Sikk – SCCE Ombudsman and Õie Tamm – • 187 spacious and modern hotel rooms organizations in place on all Managing Director at Wigéns OÜ • Restaurant, lobby-bar, catering, business lunches Expanding these different marketplaces. • Spa, beauty center, private sauna & fitness center No major impact of the global financial crisis • Nightclub Str& (Fr. & Sat.) • In the Baltic countries we • Right now we have quite a unique offer out on the market. • Wireless internet currently operate eight Reval Coordinated by my colleague Oliver Tuus, Corporate Sales • Our order books are well filled up, said Õie Tamm, Manager, it is unique in that respect that this special discount Managing Director at SCCE’s member Wigéns OÜ. During Transportation: Hotels, two Reval Inn Hotels and package is offered to all members of Swedish Chambers the first months this year we noted a 6 – 7% decrease in our By plane: 30.04.09-23.08.09 Direct flight Stockholm-Pärnu-Stockholm one exclusive five star luxury of Commerce, not only in Estonia but also to members in production volume but it has picked up and it looks good for By bus: 1.5H from Tallinn SPA facility, said Carl Kjellberg, Carl Kjellberg Latvia, Lithuania, Sweden and other countries where Swedish the coming months this year. 2H from Riga Chambers of Commerce are present. Oliver tells me that it is a Reval Hotel Management’s VP Sales A.H. Tammsaare pst. 35 / Pärnu / 80010 / www.strand.ee good idea for the SCCE members to take a look at the Member Owned by the Swedish headwear company AB Oscar Wigén, & Marketing as focus met him at their well known Bonuses section at www.swedishchamber.ee. Wigéns OÜ in Pärnu specializes in textiles manufacturing. Telephone: +372 447 5370 / Fax: +372 447 5371 / email: [email protected] Tallinn landmark, Reval Hotel Olümpia. The latter venue, the ESPA Riga, opened in February this year • Our marketing and sales team in Tranås is doing a great and during the summer this year we will open the new • As I said earlier, the next step in our job, continued Õie Tamm. Wigéns’ hats and caps are sold expansion program will be this coming at shops all over the world and it seems like the demand Reval Hotel Sonya in the city centre of St. Petersburg. summer’s opening of the Reval Hotel Sonya in remains strong, no matter the economical conditions on all St. Petersburg, concluded Carl Kjellberg. And our different international markets. • Last year we opened Reval Hotel Elizabete in Riga and Reval I wouldn’t be surprised if we will see a larger Hotel Neris in Kaunas and I guess you can say that we are Reval Hotel being opened in Moscow within a • We are specialized in indeed in the process of expanding our business. couple of years. producing smaller and medium sized volumes • Coming back for a moment to the soon to be opened Reval here in Pärnu. The Hotel Sonya in St. Petersburg, we have put an old acquaintance majority of our production of the members of the Swedish Chamber of Commerce in Pärnu is hats and caps, but other charge of the operations there. It is Torbjörn Löfaldli, our textile works exist as former Food and Beverage Manager here at Reval Hotel Named Estonia’s summer capital, Pärnu gives a well. The work processes Olümpia. require a skilled and peaceful impression during wintertime. Some of experienced work force Many SCCE members recall that Torbjörn Löfaldli earned the city’s 43.500 inhabitants are out walking on the and like everybody else himself a good reputation for his way of arranging the meals in streets and some others can be seen skating or ice we had some problems in connection with the Chamber’s events. Some are still talking yachting on the frozen bay. keeping and finding the about his talents in getting a classical Swedish Christmas labor we needed during the years of economical boom. This Buffet served. situation has indeed improved now and I can focus on further Strategically located 130 km from Tallinn and 190 developing the productivity backed up by a stable and skilful • Reval Hotels are owned by Linstow AS, one of Norway’s km from Riga with Via Baltica, the E67, running team of workers. leading real estate investment and property development and through the city, Pärnu is however much more than management companies. Linstow in its turn is wholly owned • In addition to our new collection of hats for the by A WILHELMSEN AS, operating worldwide within the cruise just a summer city. The town was an important coming spring, summer, autumn and winter we are also industry, shipping, offshore and financial investments. trading hub during the days of the Hanseatic manufacturing hats for uniformed personnel, theatres and League and Pärnu is still an important year round movie companies as well as hats for special occasions. • The ownership structure gives us an international outlook, location for several manufacturing companies as A major part of the Swedish Studentmössor, the typical continued Carl Kjellberg. In addition to our businesses in white hat that Swedish youth wears when they graduate the Estonia, Latvia, Lithuania and Russia, Linstow also owns and well as conferences, congresses and individual gymnasium, are actually made here in Pärnu, concluded Õie develops real estate in Norway, Sweden and Portugal. visitors. Tamm. 30

Focusing on conferences, Launching a new concept congresses and meetings • Since we opened the doors 1999, Ammende Villa has • It should look like this every developed to an internationally renowned landmark in Pärnu, day during the wintertime, said Ene Tohv, Ammende’s General Manager and recently newsflashes said Gerli Kangur, Marketing becoming a member of the SCCE. Ammende Villa was one of Auditing Manager at SCCE’s member the first luxury hotels opened Gencs Valters Law Firm Strand SPA & Conference in Estonia and it is indeed Hotel in Pärnu, as she and her a truly unique architectural goes pan Baltic Accounting colleague Elo Kriiska, Head of representative of Art Nouveau Strand’s Sales Department, and Jugend, both inside and Following the June 2008 opening of their Tallinn office, Tax Advisory guided focus through their well outside. Gencs Valters Law Firm is now a pan Baltic full service, filled up hotel a Wednesday in Legal Services March this year. • Our guests appreciate general practice international business law firm as the the special atmosphere of company officially opened its Vilnius office March 6th, 2009. • Providing good and functional Ammende Villa and we are localities for conferences, happy to note that we attract congresses and meetings well-travelled individuals as is a key issue for us during well as smaller groups taking the winter season, said Elo their seats in one of our salons Kriiska. We can seat up to 500 for a board meeting or a participants at our conference strategic meeting in a creative centre and we have invested a environment. Ammende Villa lot in providing modern technical conference equipment. has also become popular for celebrations like weddings, • Our most recent investment concerned our SPA, continued birthdays and other private Elo Kriiska. We have built a new Steam Sauna, a new Jacuzzi Ene Tohv jubilees. Pool and we have also installed Heated Stone Benches. The renewed SPA was opened in the end of February this year and • In 2007 we expanded our quality concept to Tartu and we believe it will remain an appreciated area for our guests’ opened the Art Deco styled Restaurant Volga and the exquisite relaxation. Conference Center Athena. A further step in this expansion Rödl & Partner is present where was taken in March this year as we open Antonius Hotel in Tartu, a new luxurious and romantic boutique hotel. business is present.

• We have now decided to market We open the gates both to the all of our services under the name national and international Ammende Luxury marketplaces with 2750 experts Collection, concluded Ene Dovile Preiksaite, Law Firm Gencs Valters, Lithuania employed at more than 80 offi ces Tohv. It includes and Valters Gencs Ammende Villa in 38 countries around the world. Hotel & Restaurant The law firm was established in Latvia year 2000 and in addition in Pärnu as well to its pan Baltic presence, Gencs Valters Law Firm is also part as Antonius Hotel, of international law networks. The firm is a member of the Estonia Lithuania Restaurant Volga The Athena Conference and Culture Center, European network Eurojuris, covering 630 different locations in Roosikrantsi 2 Tilto Str.1/2 Tartu and the Athena Vilnius 01101 Kristiina Sikk, Elo Kriiska and Gerli Kangur in Strand SPA & more than 40 countries worldwide, and is also integrated with EE 10119 Tallinn Tel: (+370) 5 212 35 90 Conference Hotel’s renewed SPA the independent law firm association Multilaw which has over Tel: (+372) 68 05 620 Conference and e-mail: [email protected] e-mail: [email protected] Culture Center in Tartu. 6.000 lawyers in more than 150 commercial centres around the www.roedl.lt • Active sales and Ammende Celebrations world. www.roedl.ee marketing is of is also included and it is course a must in our an event management On the pan Baltic marketplace Gencs Valters Law Firm current- business, concluded agency, offering high Latvia Global Headoffi ce both Elo Kriiska and standard services for ly has 15 lawyers and tax advisers focusing on tax, litigation, K.Valdemara iela 33 Äußere Sulzbacher Straße 100 Gerli Kangur. We try to organizing anniversary M&A, corporate, immigration, finance and intellectual property Riga 1010 Nürnberg 90491, Germany visit the main tourism parties, weddings, law and providing legal, tax, corporate finance, management Tel: (+371) 67 334 280 Tel: (+49) 911 91 93-0 e-mail: [email protected] e-mail: [email protected] fairs and exhibitions in conferences and consulting, evaluation and due diligence services. neighboring countries company – or incentive www.roedl.lv www.roedl.de and so far this year events. we have been present The recent opening of the Gencs Valters Law Firm office in in Helsinki, Tallinn, Vilnius and Gothenburg. Networking with Vilnius became a success. Almost 200 guests from all the members of the Swedish Chamber of Commerce in Estonia has Chambers of Commerce in Lithuania as well as top-business Rödl & Partner International: Germany (Head Offi ce), also provided us with ideas for a coming sales activity towards representatives from all around the globe participated. The Austria, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Swedish tour operators and travel agencies. This latter project Bulgaria, China, Croatia, Czech Republic, Estonia, France, founder of the law firm, Valters Gencs, said that he is glad to comes in handy as Estonian Air will start up nonstop flights, Texts: Hungary, Hong Kong, India, Indonesia, Italy, Latvia, twice a week between Pärnu and Stockholm-Arlanda during the Megazine - Tallinn return with a business to the land of his grandfather who fled Lithuania, Malaysia, Moldova, Poland, Qatar, Romania, summer season. from Lithuania to Latvia in 1947 to avoid deportation. Russia, Singapore, Slovakia, Slovenia, South-Korea, Spain, Sweden, Switzerland, Thailand, Turkey, Ukraine, United Arab Emirates, United States, Vietnam 32 33

• With a large and international clientele, it is 1809 important that Reval Hotels management team have 200 hundred years have experience and knowledge passed since Sweden newsflashes newsflashesJanuary 2009. City Line is a double-track underground rail- gained both in their home and Finland became The Overall Score is based on ten benchmarked economic way with two new stations to be built in a six kilometre-long market and internationally, two separate countries. freedoms ranging from property rights to entrepreneurship. tunnel underneath Stockholm city. The new City Line will be says Tiina Reijonen, Country Following 600 years used by the commuter trains while other train services will Manager of Reval Hotels in of Swedish ruling, the Commenting on the rankings, The Heritage Foundation and continue to run on the existing two tracks originally built 138 Estonia and General Manager Finnish War between The Wall Street Journal says: years ago. of Reval Hotel Olümpia. Sweden and Russia 1808 – 1809 ended • Ranked as the 13th freest econ- Kaido Ojaperv studied at the with Finland being omy in the world, Estonia ranks Swiss Hotel Management established as the autonomous Grand Duchy of Finland 6th out of 43 countries in the School in Caux in Switzerland under the Russian Czar Alexander I – at that time addressed European region, and its overall and also completed a as Emperor and Autocrat of All the Russias, King of Poland score is well above the regional management studies course and Grand Duke of Finland. and world averages. Kaido Ojaperv at Cornell University PDP. Recently Kaido has been 1809 also became the starting point for Sweden’s and • Top income and corporate tax involved in feasibility studies for several new hotel projects in Finland’s development towards the democracies of today rates are low, and business freedom is relatively strong. Tallinn, St. Petersburg, Bük, Warsaw and Wroclaw. and the close connections between the two countries have Competitive, efficient, and open to international firms, Es- remained and developed further. tonia’s financial sector is one of the most developed among • We are at the beginning of the most challenging year the Baltic States. the hotel business has seen and it is very important that The events of 1809 and the following 200 years will be hoteliers have the capacity and tools to perform rapid highlighted in Finland and Sweden throughout this year. • Estonia could improve still more in government size and market analysis and to implement swift actions based on in labour freedom. Total government spending is high, the information found, adds Tiina Reijonen. Reval Hotels is a The opening ceremony took place in the Swedish Parliament A commuter train on one of the two existing and congested tracks although in line with other European Union economies, and through Stockholm major player in the Baltic market and although facing exactly January 15th with Sweden’s King Carl XVI Gustaf and labour market reforms could enhance employment and the same challenges as others, we feel confident that having Finland’s President Tarja Halonen productivity growth. A 300 m long under- the right people in the right places doing the right jobs is present. water railroad tunnel, the most important factor in maintaining a competitive • Sweden benefits from extremely high levels of business located to the bottom of advantage. Conferences and seminars with freedom, property rights, and freedom from corruption. Riddarfjärden, between a focus on bi- and multilateral With its economy open to global trade and investment, Riddarholmen and Reval Hotel Olümpia is one of the landmark buildings in economy, commerce and trade will follow during 2009 and Sweden also scores well in trade freedom, investment Söder Mälarstrand, is Tallinn, built in 1980. Its facilities include 390 guest rooms; detailed programs are available at www.markesaret1809. freedom, monetary freedom, and financial freedom. one crucial part of the 13 conference rooms; banqueting halls; the Restaurant se and www.1809.fi. City Line and the Es- Senso; Café Boulevard; a fitness centre, Club 26, on the • The overall Swedish regulatory environment is simple and tonian based company 26th floor; a night club, Bonnie & Clyde and in-house beauty transparent, facilitating robust entrepreneurial activity. The BLRT Marketex has salons. Economic Freedom financial sector is highly developed, and monetary stability got the contract for the • The highest form of economic freedom provides an ab- is well maintained. tunnel building. Reval Hotels is solute right of property ownership, fully realized freedoms the leading hotel of movement for labour, capital, and goods, and an abso- • However, Sweden has some of the lowest scores world- The City Line doubles chain in the Baltic lute absence of coercion or constraint of economic liberty wide in fiscal freedom and government size. The top income the capacity of train countries, operating beyond the extent necessary for citizens to protect and tax rate of 57 percent is one of the highest in the world. services through cen- eight full-service, maintain liberty itself, says the US think tank The Heritage Total government spending is still more than half of GDP. tral Stockholm. More first-class hotels Stockholm’s new City Line commuter trains will located in the major Foundation and The Wall Street Journal in their introduction The labour market’s inflexible regulations have caused the Map: Banverket to their 2009 Index of Economic Freedom. In other words, labour freedom score to dip below the world average. be able to operate and Baltic cities: three individuals are free to work, produce, consume, and invest in there will also be sufficient capacity to handle increased in Tallinn, Estonia, any way they please, and that freedom is both protected by The full 2009 Index of Economic Freedom is available at traffic in terms of long-distance passenger as well as cargo three in Riga, Latvia, the state and unconstrained by the state. www.heritage.org/index/ trains routed through Stockholm. one in Vilnius and one in Kaunas, 2009 Index of Economic Freedom – Rankings The total cost of the City Line is approximately SEK 16 billion Lithuania. and the new line is planned to become operational World Estonian know-how takes in 2017. Reval Hotels is Rank Country/Economic Area Overall Score owned by the 1 Hong Kong 90,0 part in the building of Norwegian real 2 Singapore 87,1 estate investment 3 Australia 82,6 Stockholm’s new City Line Kaido Ojaperv appointed company Linstow 8 Denmark 79,6 AS, owned by A 13 Estonia 76,4 When the railroad connecting Stockholm Central Station Operational Manager of the 17 Finland 74,5 with Stockholm South Station was constructed as a bridge Wilhelmsen AS, also 26 Sweden 70,5 and a tunnel in 1871, the traffic density accounted for some Reval Hotel Olümpia a major shareholder 28 Norway 70,2 10 trains per day. Today the traffic has grown and up to 550 in the world’s second 30 Lithuania 70,0 trains per day are using the two tracks available. Kaido Ojaperv has been in the hotel business for 15 years. largest cruise 45 Latvia 66,6 shipping company, 179* North Korea 2,0 In addition to an extensive international experience, he To solve this apparent congestion problem, the building has been working for the Reval Hotel Olümpia and Reval Royal Caribbean Cruise Lines. *) Last among the ranked countries of the new Stockholm City Line was officially launched in Park Hotel & Casino in the period 1992-2000. 34 35 A record number Corporate Social of visitors at Tourest Responsibility

As the three day 18th 70,2%newsflashes more passengers. The total Tallink passenger volume newsflashesCentre in Canada in 1991. Since then his career has taken “The fourth objective at this 2009 World Economic Fo- International travel fair January 2009 compared to January 2008 showed a 34% him to Montreal, Moscow, Galway – Ireland, Myrtle Beach - rum in Davos is to better shape the ethical value base for Tourest 2009 closed in increase. South Carolina, Québec and Beijing. business”, said Klaus Schwab, the Forum’s founder and Tallinn February 15th, the President, in his opening speech January 29th. organizers could account Tallink’s newest ship, M/S Baltic Queen, 212 m long and As he joined Radisson SAS Hotel in Tallinn February 10th, for a record number of capable of carrying 2.800 passengers, will be put into traffic 2009 he came from a position as Executive Assistant Months before that, Sofia Cerne, a Swedish business- and visitors. between Tallinn and Stockholm in the end of April this year. Manager at the Radisson SAS Hotel in Beijing. organizational developer, started to write a book on CSR, Corporate Social Responsibility. The Holiday in Estonia • Our new ship M/S Baltic Queen is bigger than Romantika • Though I haven’t worked in Sweden yet, I think I can say Hall presented exhibitors and Victoria, currently in traffic on the Tallinn – Stockholm that I have a pretty good knowledge of Swedes and Swedish • CSR as a concept is well es- from all over Estonia route, and Frihamnen, our present Stockholm port, is too businesses abroad, said Olivier Rochefort as focus met tablished in bigger companies, and quickly became a small for the new ship, says Ats Joorits, Vice Managing and welcomed him to Tallinn. The Swedish Chamber of but there is room for improve- favourite among the Director and Director Sales and Marketing at Tallink Silja AB Commerce in China have their Beijing office in the Radisson ment among visitors. in Sweden. SAS Hotel there and I have taken part in a number of events small and medium sized enter- Pia Mäemets – Reval Hotels and activities arranged by them. prises, said Sofia Cerne as her Tourest 2009 was attended by 343 exhibitors and co- • This means that we will move our Tallinn traffic from book was launched in Sweden in exhibitors representing 26 countries. All exhibitors, Frihamnen to Värtahamnen. The move will take place March February. It is we, the entrepre- among them several SCCE members, had busy days. Many 9th which will give our passengers and us good time to neurs, who should lead the way good deals were made and a lot of information and sales get settled before the launch of M/S Baltic Queen and the towards a better world, not the promotion activities took place on the main stage and in the coming peak summer period. politicians. exhibitors’ stands. Värtahamnen is well known • Much has been written on CSR but I have found it either Jointly organized by the to the Swedes as it has been to theoretical or trivial. I want to describe CSR in an easy Estonian Association of used by Silja Line, nowadays and straight forward way. Taking a more active part in the Travel Agents and the a Tallink brand, since years society creates growth and earnings and consequently Estonian Tourist Board, back. Värtahamnen and contributes to the continued creation of a better world. next years exhibition - Frihamnen are situated next to Tourest 2010 is scheduled each other with Värtahamnen Sofia Cerne is managing her own company Kerasos, a to take place February Aime Vilgas and Elo Kriiska - Strand Spa having a Stockholm subway member of the Stockholm Chamber of Commerce and 12 – 14. & Conference Hotel, Pärnu station close to the terminal, a specialized in business development, trainings and lectures convenient benefit for Tallink’s within personal development, entrepreneurship and value passengers travelling without Värtahamnen in Stockholm based work in companies and organizations. Additionally Tallink – Increased number car. Photo: Stockholms Hamn publishing is an important part of her company’s activities. of passengers, a new ship The move to Värtahamnen also calls for a slight change in “Entrepreneurship remains the key driver of wealth and the schedule. Departures from Stockholm will be at 17.45 the market economy is a fundamental pillar of a free and and change of port instead of 18.00. The Tallinn departures will remain at 18.00 democratic society, but the market forces also must serve in Stockholm and arrivals in Stockholm and Tallinn will also remain at society at large”, concluded Klaus Schwab the opening of 10.00. this year’s World Economic Forum. Tallink recently announced an impressive increase in the number of Designed and printed in Estonia, the book, CSR: En fluga passengers carried during January • I now look forward to meet the members of the Swedish eller konsten att tjäna mer pengar (written in Swedish lan- 2009 compared to the same month Olivier Chamber of Commerce in Estonia. I have heard about guage) can be ordered online at www.kerasos.se. 2008. Between Estonia and Sweden Rochefort SCCE’s activities and have learned that SCCE, just as 64,7% more passengers travelled the Swedish Chamber of Commerce in China, among all with Tallink and between Estonia and appointed seminars and activities also arranges a crayfish party and Finland the passenger increase was I do believe that I already know some of the Swedish songs A perfect end to a General connected with this event by heart. 29,1%. Manager nice evening at A record increase was noted between Olivier Rochefort holds a Bachelor of Business Schlössle Hotel Riga and Stockholm ending up with Olivier Rochefort, who Administration from the University of Quebec in Canada, is Canadian, has a solid and besides his native French and English he also speaks There are several ways of putting a perfect end to a background in the hotel some Spanish and Russian. nice evening. Relaxing in a comfortable armchair, business. He joined Carlson lighting up a good cigar and maybe also having a Olivier Rochefort glass of fine Cognac or Armagnac, is one of them Tallink M/S Baltic Queen Illustration: Tallink appointed General Manager and the Radisson Hotel Ottawa 36

and Tallinn’s Schlössle Hotel has now opened a cigar lounge on the ground floor. newsflashes • Our intimate hotel, located in a building dating back to the 13th century with massive wooden 10 year anniversary at beams, antique furnishings, Meriton Grand Hotel green and plum colour décor gives us the opportunity to offer Opened in 1999, the Meriton Grand Hotel Tallinn a perfect atmosphere to relax now celebrates its 10th year anniversary. at the end of a great meal, or a long day, says Kay Peter By end of March an extensive renovation Bischoff, Schlössle Hotel’s programme will be completed. The newly Kay Peter Bischoff General Manager. renovated lobby area will feature a first Tapas bar and restaurant, a new central • Matching Schlössle Hotel’s baronial atmosphere with an seating area and a new meeting space. exclusive cigar lounge is a further step forward. Many of our guests, both in the hotel and at Schlössle’s Restaurant The Tapas Bar and Restaurant is the first in Stenhus, enjoy the possibility of choosing the company of Tallinn focusing on traditional hot and cold Spanish style a good cigar from the humidor and maybe also an equally food. Open between 08.00 and 24.00 it will become a popular good drink. and an excellent downtown place for dining.

Meriton’s Spanish theme started already in February as Spanish Food weeks were launched in Restaurant Grand Tallinn in Meriton Grand Hotel Tallinn and Café Mademoiselle in the Meriton Old Town Hotel.

As of May 1st 2009 all Meriton hotel guests are privileged to use a wide range of services available at the • Schlössle Hotel and Restaurant Stenhus represent an new Meriton experience in comfort and elegance. We give our guests Conference a feeling of the perfect home away from home and we & Spa Hotel, are now happy to additionally offer a perfect end to a nice located adjacent evening at the cigar lounge, concludes Kay Peter Bischoff. to Meriton Grand Welcome to visit us. Hotel Tallinn. The guests can enjoy an Aqua & Sauna Centre, Spa Treatments, a Fitness Club, the Asian Restaurant Wok & Grill, Bistro Linda, the Buddha Bar, the Piano Bar and a large variety of conference rooms and facilities. Right in the midst of the business Contributions to from the members of SCCE, both ABB AS 3STEPIT ACG NYSTRÖM EESTI AD VISIBLE ADVOKAADIBÜROO in terms of editorial content ABB ACG NYSTRÖM EESTI AD VISIBLE ADVOKAADIBÜROO GLIMSTEDT STRAUS & and advertising, are welcomed. focus’ advertising opportunities GLIMSTEDTPARTNERS ADVOKAADIBÜROO STRAUS & PARTNERS LEPIK & ADVOKAADIBÜROO LUHAÄÄR LAWIN ADVOKAADIBÜROO LEPIK & LUHAÄÄR LUIGA LAWIN MODY including sizes, prices and ADVOKAADIBÜROO LUIGA MODY HÄÄL BORENIUS ADVOKAADIBÜROO PAUL VARUL technical requirements are HÄÄL BORENIUS ADVOKAADIBÜROO PAUL VARUL ADVOKAADIBÜROO POHLA & HALLMÄGI On a particularly grey and cold Eesti Pank. This particular chart available at our website: ADVOKAADIBÜROOADVOKAADIBÜROO POHLA SORAINEN & HALLMÄGI LAW OFFICES ADVOKAADIBÜROO ALD AUTOMOTIVE SORAINEN ALLANDO LAW TRAILWAYS OFFICES March day, a Swedish friend showed the divergences in Eesti www.swedishchamber.ee told me about Oxveckorna [the Ox- Pank’s forecasts on key economic ADVOKAADIBÜROOALSTOM ESTONIA VIRRI&GÄRDE&NORDLIN ALTENBERG REVAL AQ LASERTOOL ALLANDO TRAILWAYSASIANAJOTOIMISTO ALSTOM HEDMAN ESTONIA weeks]. Many years ago, before the indicators made at different times, If you haven’t already done big industrialization and urbanization, but made only a few months apart. it – please do put us on the ALTENBERGOSBORNE CLARKE REVAL ASSABALT AMMENDE ASTLANDA LUXURY HOTELLI COLLECTION BALTIC SEAAQ LASERTOOLCARGO BANCTEC ASSA BARONS ABLOY Sweden was still an agricultural The divergences were considerable mailing list for pressreleases, country and the farmers called the and this chart convinced me to articles as well as your point- HOLDINGBALTIC BANCTECBERCO OÜ BESQAB BERCO PROJEKT BESQAB JA PROJEKT KINNISVARA JA KINNISVARABLADHS EESTI BLADHS AS BOOMERANG EESTI weeks from New Year up until March take future forecasts with an of-view on issues of general SUBCONTRACTING CIPAX EESTI CITY AIRLINE DHL ESTONIA DPD EESTI the ox-weeks. Apart from taking care equally considerable amount of interest for the commerce AS BLUEDRUM BNT LEGAL&TAX BOOMERANG DISTRIBUTION OÜ CHRISTIANSEN of their cattle, nothing could be done suspiciousness. and trade between Estonia E-BETOONELEMENT EESTI AGA ELECTROLUX EESTI ERICSSON EESTI ESTNATURE on the fi elds and these ox-weeks were and Sweden. CONSULTING CIPAX EESTI CITY AIRLINE DELOITTE DHL ESTONIA DPD EESTI considered as somewhat dull and Coming back to Sweden many ESTONIAN AIR ESTONIAN GOLF &COUNTRY CLUB EVATA BALTIC EXCEDEA FARM PLANT slow. years ago, reliable prognoses Latest news on SCCE events E-BETOONELEMENT EESTI AGA ELECTROLUX EESTI EMBASSY OF SWEDEN were of course important for to come and fresh reports EESTI ADVOKAADIBÜROO VIRRI&GÄRDE&NORDLIN FORS MW GOODYEAR DUNLOP TIRES It might be easy to believe that nothing much happened in the the farmers of those days. How on events passed are always BALTICERICSSON HANSAPANK EESTI CSAESTNATURE PARTNERS OÜ HK ESTONIAN INDUSTRIAL GOLF HUMAN &COUNTRY SEARCH CLUBHUSQVARNA ETAL IF Swedish farms during this period. But it actually did. People were will the weather and the coming found at www.swedishchamber. preparing for better times to come. Ploughs and other farming conditions for good harvests be? ee and you can reach me for EESTIGROUP KINDLUSTUS EXCEDEA IMPLEMENT FARM PLANT BALTIC EESTI INBRO FORS & MW PARTNERS AS FUSION KINDLUSTUSMAAKLER VARAHALDUSE equipment were overhauled and repaired if necessary. Plans To get at least some guidance further information at email: were made on where to grow what on the fi elds and contacts in this respect they used [email protected] GENCSINCAP ELECTRONICSVALTERS LAW ESTONIAFIRM GOODYEAR INTEREXPRESS DUNLOP JUS TIRES SUECANUM BALTIC KG HUMAN KNUTSSON SEARCH KNT were made with neighbours on issues of common interest. Bondepraktikan [appr.: The Book or by phone: on Farmer’s Instructions and (+372) 501 9813. HUSQVARNAMEEDIAD IF LEGEND EESTI KINDLUSTUS MANAGEMENT AS INBROLINDORFF & PARTNERS EESTI KINDLUSTUSMAAKLER LUNA EESTI AS During the fi rst months of 2009 I have seen something similar Advice]. As I am fond of picking going on in Estonia. Companies are adjusting to the times berries in the forests, I am now a INTEREXPRESSMANDATOR ESTONIA INTERLORD MAQS LAW JUS SUECANUMFIRM FUSION KIDDE VARAHALDUS EESTI ASMCM - present and preparing for better times to come. It has become bit troubled that I don’t remember MARKET COMMUNICATION MANAGEMENT MEDIA MENU easier to get skilled labour needed and labour costs are going what the weather was like January KNT MEEDIAD AS LEINONEN OÜ LINDORFF EESTI AS LUNA down. Investments and preparations are made for being in 29th because Bondepraktikan INTERNATIONAL MEKANEX MASKIN MERITON HOTELS place when the economy turns upward again. Organizational says ‘Solsken den dagen och det EESTI AS MAQS LAW FIRM MCM - MARKET COMMUNICATION improvements and trainings are being done, also within sales blir ett välsignat bärår’ [Sunshine MÖLNLYCKE HEALTH CARE MORE REKLAAMIBÜROO MPS EESTI MANAGEMENT MEDIA MENU INTERNATIONAL MERITON HOTELS and marketing. The times when people could sit down by the that day and it will be a blessed NEAR-SHORING NORDEA BANK FINLAND PLC EESTI FILIAAL phone and just take orders are gone. Active fi eld sales combined year for berries]. MPS EESTI MÖLNLYCKE HEALTH CARE NEAR-SHORING NORDEA BANK NORDIC with a high degree of social competence is a must today. NORDIC LINT OÜ NORDKALK AS ORIFLAME EESTI OÜ OUTOKUMPU As for March 1st Bondepraktikan LINT NORDKALK ORIFLAME EESTI OUTOKUMPU BALTIC PERNOD RICARD EESTI It seems like the December says ’Om åskan bullrar den BALTIC OÜ PÕHJAMAADE MINISTRITE NÕUKOGU PÕLTSAMAA FELIX PRIMUS EESTI OÜ 2008 SCCE business seminar on dagen måste man räkna med POSTEN LOGISTIC SCM OY EESTI FILIAAL PRIMUS EESTI PROEKSPERT PROPARTS ‘Doing more with less’ was well en sträng och lång vinter med PROEKSPERT AS PROPARTS OÜ RAGN-SELLS RAPLA PLAST REVAL HOTEL MANAGEMENT timed. A higher level of creativity, snö ända in i maj’ [If the thunder PÕHJAMAADE MINISTRITE NÕUKOGU PÕLTSAMAA FELIX PÖYRY RADISSON HOTEL productivity and effi ciency are rumbles that day, one has to RIMI EESTI RMCONSULTING AB & PARTNERS RÖDL & PARTNER SANDHOLM ASSOCIATES indeed also musts on the market count with a hard and long winter RAGN-SELLSSAPA PROFIILID RAPLA SAS SCANDINAVIANPLAST REVAL AIRLINES HOTELS SYSTEM RIMI EESTI SCANDITRON RMCONSULTING SCANIA EESTI AB & today and for the future too. I agree with snow well into May]. I am with Andres Lipstok, the Governor happy to report that I didn’t hear PARTNERSSCHENKER RÖDLSCHLÖSSLE & PARTNER HOTEL GROUP SANDHOLM SEB SEGERSTRÖM ASSOCIATES AUTOMOTIVE SAPA PROFIILID SIEVERT SIROWAAS SAS of Eesti Pank, who recently told me any thunder March 1st and I feel and others from foreign Chambers quite certain that we will see the SCANDINAVIANGENCS VALTERS AIRLINES LAW FIRM SYSTEM SLG THOMAS SCANDIC INTERNATIONAL HOTELS SCANIA EESTI SÖDRAEESTI EESTISCHENKER SSAB of Commerce in Estonia that the sun and nice days to come again. world will not look the same when SWEDISH STEEL EESTI STENSTRÖMS SKJORTFABRIK EESTI STONERIDGE ELECTRONICS SCHLÖSSLE HOTEL GROUP SIEVERT SIROWA SSAB SWEDISH STEEL EESTI this crisis is over. We simply have When and to what extents are STORA ENSO METS STRAND STRØMNES & STRØMNES LAW OFFICE SVEAFASTIGHETER Photo: Henrik Trygg to do more with less to be able of course open issues. Maybe Bondepraktikan is as good in STENSTRÖMS SKJORTFABRIK EESTI STONERIDGE ELECTRONICS STORA ENSO METS to compete on a more and more forecasting as the economic prognoses we currently can see SVEBA-DAHLEN SVENSKA HANDELSBANKEN AB EESTI FILIAAL SWECON SWEDBANK internationalized marketplace. being published. STRAND SVEAFASTIGHETER SVEBA-DAHLEN SWECON SWEDBANK SWEDISH SWEDISH EMBASSY SWEDISH TOOL SWEDISH TRADE COUNCIL SAVANT ESTONIA TALLINK The big questions right now are of course connected to when the TRADE COUNCIL IN ESTONIA SVENSKA HANDELSBANKEN SÖDRA EESTI TALLINK economy will turn upwards again and what the future GDP and I hope you enjoy reading this issue of TARKON TEDER GLIKMAN JA PARTNERID TELIA SONERA AB TIETOENATOR EESTI UNITED infl ation fi gures will look like. and latest news on SCCE events TARKONMOTORS TEDER ARCO VARAGLIKMAN VARAMIESPALVELU JA PARTNERID PERNOD TELEGRAAF RICARD HOTEL VÄVARS TELIA VIKING SONERA KINNISVARA TIETO to come and reports on events As for the timing of a change for the better I agree with Joakim passed are always found at: EESTIVIKING WAHLQUIST MOTORS VOGLERS VARAMIESPALVELU EESTI VOLVO ESTONIAVEINIPOOD WAHLQUIST WENDRE WENDRE WIGEN WIGEN SINDI SINDI VIKING Helenius. At SCCE’s fi rst Business Lunch this year he said that www.swedishchamber.ee. nobody knows when it will happen. The only thing we can be KINNISVARAWINDAK SUOMEN VIKING LOGISTIIKKATALO MOTORS WINDAK VOGLERS EESTI VOLVO ESTONIA VÄVARS certain of is that the times will change for the better again.

And as for prognoses on future GDP, infl ation and other economic Sincerely, key indicators I think that Ülo Kaasik, Eesti Pank’s Head of The Swedish Chamber of Commerce in Estonia the Monetary Policy Department, showed a very good chart in Kristiina Sikk connection with the Chambers of Commerce presentation at SCCE Ombudsman It’s not about where you go. It’s about where you stay.

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