Estonian Review E E S T I R I N G V a a D E VOLUME 17 NO 12 MAR 21- 27, 2006

Estonian Review E E S T I R I N G V A A D E VOLUME 17 NO 12 MAR 21- 27, 2006

FOREIGN NEWS DOMESTIC NEWS Estonia's Coalition Not to Change Foreign, Defence Policy Mar 21 - The parties holding coalition talks agreed that Estonia will continue on its present foreign and defence policy course. Meelis Atonen, vice chairman of the Reform Party said that in defence policy the new coalition would continue carrying out the defence forces' development plan until the year 2010 and would take the course toward professional armed forces. As a new development, the coalition would make the role of the Kaitseliit (Defence League) volunteer corps bigger and stronger, and not only in military matters but also in the solving of Estonian Prime Minister Andrus Ansip, civilian emergencies, such as large accidents. In Permanent Representative to the EU Väino that connection also financing for Kaitseliit will increase substantially. Reinart and Vice President of European Also discussed were problems of civilian Commission Günter Verheugen in Brussels, 23 control, with the negotiators underscoring the March European Community need to adopt a law on the organization of armed forces. Prime Minister Attended EU Anniversary Mart Laar from the Pro Patria and Res Publica Celebrations in Berlin Union (IRL), said that under the new coalition government the foreign and defence policy will Mar 23 - Estonian Prime Minister Andrus Ansip left be based on same principles as now. for Berlin in order to take part in marking the 50th In defence policy, the parties agreed about anniversary of the Treaties of Rome that laid the raising defence spending to two percent of GDP foundation to the European Union. by 2010 and to fundamentally strengthen the “I do not think that 50 years is midlife for a great role of Kaitseliit, Laar said. union of states and I am sure there is no reason to talk Speaking about foreign policy, Social about midlife crisis,” Ansip said. “This success story lasts Democrats' Vice Chairman Eiki Nestor in his for centuries.” remarks named the EU and relations with the At the invitation of the German Chancellor Angela EU's neighbours and new democracies. Merkel, all the heads of state and government of the European Union participated in the celebration. The functions were ushered in with a concert at the FOREIGN NEWS Berlin Philharmonic, where Beethoven's 5th Symphony President Took Part in Treaties of was performed under Sir Simon Rattle's baton. Rome Anniversary Events in Brussels Federal President Horst Koehler hosted the guests at Mar 23 - President Toomas Hendrik Ilves a dinner at the Bellevue Palace. and Mrs Evelin Ilves flew to Brussels to take A festive meeting took place at the German History part in events marking the 50th anniversary Museum where the Berlin Declaration was signed. The of the signing of the Treaties of Rome at the declaration sums up the achievements of the European invitation of King Albert II of Belgium. Union during 50 years, analyzes the present state of President Ilves participated in the Importance affairs and sets aims for the future. of European Integration seminar at the Belgian The Treaties of Rome were signed on March 25, 1957 Royal Palace, a formal reception hosted by King by the foreign ministers of Belgium, Germany, France, Albert II, and the cultural program of the jubilee Italy, Luxembourg and the Netherlands. The most celebration of the Treaty of Rome. important document was the Treaty of the European The Treaties of Rome were signed on March Economic Community with its numerous supplements. 25, 1957 by the foreign ministers of Belgium, Anniversary events took place also elsewhere in France, Germany, Italy, Luxembourg and the Europe, they culminated in Berlin, the capital of the Netherlands. German presidency of the EU. The most important of the treaties was the There were also various other events intended for the Treaty Establishing the European Economic public as well as plans to distribute free Bratwurst and Community with its numerous supplements. beer.

FOREIGN NEWS Afghanistan, the heartland of the Taliban insurgents, where the heaviest fighting has taken place, Reuters Estonia Hails Signing of Latvian-Russian added. Border Deal Mar 27 - The Estonian Foreign Ministry Estonia Gave Teacher Training Class to welcomed the signing of a treaty delimiting the Moldova border between Latvia and Russia, voicing the hope that its enactment will encourage Mar 23 - Estonia has given to Moldova a teacher Moscow to move ahead also on the Estonian- training class Foreign Minister Urmas Paet Russian border deal. opened during his visit to Chisinau. "We welcome the signing of the Latvian-Russian The Estonian Foreign Ministry financed border agreement," Foreign Minister Urmas Paet installation of the training class and organization of said. "We hope Latvia will also succeed in reaching the conference with more than 700,000 kroons (EUR the final goal - enactment of the border treaty." 44,700) in the framework of the Leap development Our neighbors' success is our success as well and cooperation project. each step forward in putting the European Union- The aim of the project is to help the Moldovan Russian relationship on a firm contractual foundation society purposefully move towards the information serves the interest of the whole bloc and Estonia, society through the computerization of the the minister said. educational system and making the cyberspace Unlike Latvia, Estonia already has a border treaty available to young people. The conference was with Russia which has been signed by both sides in carried out by Estonian teachers and experts. its original negotiated form and also ratified by During his three-day visit Paet also met with Estonia, the minister recalled. Moldovan Prime Minister Vasile Tarlev, Foreign "Prior to the signing of the accord, there was Minister Andrei Stratan and Education Minister Victor consensus in Estonia that it is in full acoordance with Tvircun. the Estonian Constitution," Paet added. "If the With Tvircun cooperation opportunities in the Latvian-Russian border treaty is enacted in the near field of education were discussed. “Greatly with future, this might encourage Russia to proceed also Estonia’s support, today all schools have Internet with the enactment of the treaty with Estonia." connection and every school has a computer class,” Estonia is always ready to give assurances of its the Moldavian Education Minister said. desire for good neighborly relations with Russia and Urmas Paet confirmed that Estonia is ready to of having no territorial claims on Russia or any other continue cooperation in that field. “Moldova’s goal is country, the minister said. to become a modern information society. Using info Estonia and Russia signed the treaties delimiting technology at schools is the best way to achieve it,” the two countries' land and sea borders on May 18, Paet said. 2005 in Moscow. The Estonian parliament ratified Paet also held a speech at an information the accords on June 20 and then President Arnold technology conference addressing 150 Moldovan Rüütel promulgated the ratification act on June 22. headmasters and deputy headmasters. On June 27 Moscow announced it was The conference focused on Estonian-Moldovan withdrawing its signature from the border treaties, relations, Europe's neighborhood policy and citing a preamble added to the ratification act by the opportunities of development cooperation. Besides, parliament as the reason. issues of Transnistria and Moldova's relations with Moscow argues that the preamble allows Estonia its neighbors will be discussed. to press in the future territorial claims against Russia, a claim that Tallinn has repeatedly denied. Estonia to Build New House for Embassy in Riga US Official Acknowledges Estonian Mar 27 - Estonia's Foreign Ministry plans to Contribution in Afghanistan build by 2009 a new house for the embassy in Mar 26 - Washington is grateful to European Riga as the current building is too small and countries such as Britain, Estonia, the has to be shared with some tenants. Netherlands and Romania which have troops Estonia already has a plot for the building within operating in combat zones in Afghanistan, US a ten-minute walk of the Old Town of Riga. It was Undersecretary of State Nicholas Burns said. given the land by the Latvian government in the Burns at the same time urged European countries 1990s in compensation for a site acquired in the to provide more troops for Afghanistan and to free 1930s. them up for combat. "Imagologically it's a fantastic place for the "There is a need for a greater number of troops Estonian embassy as Viljandi, Valga and Võru from Europe, for a greater degree of flexibility in streets (named after Estonian towns) are nearby," how those troops are allowed to operate," Burns told Ambassador Jaak Jõerüüt said. reporters in Brussels. "The caveats, that limit the The ministry expects to announce a design tactical deployments of troops inside the country, in competition in the second half of this year and our view should be lifted. All states should lift them according to Jõerüüt the building should be and there should be additional economic and completed in 2009 if all goes well. The house should humanitarian aid." include proper reception rooms and the The United States provides about 27,000 of the ambassador's residence as well. 45,000 foreign troops currently in Afghanistan. Some European countries have resisted previous US calls for their troops to be deployed in southern Estonia to Get From Portugal Schengen IT samples lifted from crime scenes. The corresponding Solutions figures for the Estonian register are approximately 15,000 and 5,000, respectively. Mar 26 - Estonia's Interior Minister Kalle Laanet visited Lisbon where the Portuguese minister, Belarus Border Guard Refuses Entry to Antonio Costa, handed over to new member states of the European Union a modified Estonian Member of Parliament version of the IT platform for the Schengen Mar 24 - Belarus border guard refused entry information system. into the country to Estonian MP Silver Meikar, Developed in Portugal, the SISOne4All amends who was on his way to take part in marking and adapts the program of the SIS I. It will begin to the Belarus Independence Day. be deployed in the information system managed by "The border guard said the order to refuse my the central criminal police in April. entry had arrived via diplomatic channels. The Laanet was accompanied in Portugal by officers border guards said that there was reason to believe of the central criminal police who will receive the aim of my trip was not tourism," Meikar said. training in the application of the new software Meikar and another member of the Belarus solutions. support group from Estonia wanted to enter Belarus EU member countries that wish to join the from Lithuania in car. Schengen visa-free area must have the SISOne4All Meikar passed the Lithuanian border checkpoint deployed by end of August. A group of experts from On the Belarusian side the border guards asked him EU member states will come to Estonia to evaluate to wait, studied his name and brought a drug dog to the implementation of the information system in go sniffing through the car. After about an hour's September. wait the border guards said that Meikar's visa had EU interior ministers confirmed in mid-February a been annulled, referring to information that had new timetable for the deployment of the SIS II arrived via diplomatic channels. according to which the new system will be available Meikar said that a month ago the Belarusian by the end of 2008. consulate in Tallinn had issued him a visa without Till then, new EU countries will be using the any problems. He has earlier been to Belarus on modified version supplied by Portugal. The several occasions and until present has had no government on Feb. 22 allocated the Interior problems on border. Ministry 17 million kroons (EUR 1.1 mln) for the Meikar was a member of the previous Estonian deployment of the SISOne4All. parliament and was elected also into the new Portugal offered the SISOne4All system after it parliament in the March 4 elections. In the previous became clear that due to delays in the development membership Meikar belonged to the Belarus support of the SIS II the enlargement of the Schengen area group. would be postponed indefinitely. With the application of the SISOne4All, the first round of enlargement DOMESTIC NEWS becomes possible in December. The Deported of 1949 Were Remembered

Finland, Estonia Considering DNA in Tallinn Register Data Exchanges Mar 24 - Memento, the Estonian association of the unlawfully repressed, staged a Mar 26 - Finland and Estonia are considering remembrance ceremony on the 58th the possibility of exchanging data of the two anniversary of the March 25, 1949 deportation countries' DNA registers to facilitate solving of on Linda Hill in Tallinn. crimes. The remembrance ceremony, which included a Comparison of register data would give a better minute of silence and laying of wreaths at the chance of tracing the owner of a DNA sample lifted monument of the mourning Linda, wife of the from a crime scene. legendary Estonian hero Kalev, was attended by Robin Lardot from the Finnish Interior Ministry assistant provost of Tallinn Patrick Goransson, said that access to the DNA register is not the same Latvian Ambassador to Estonia Rihards Mucins and as automatic communication of personal data. Under Mayor of Tallinn Jüri Ratas. discussion was the possibility of creating a system Wreaths by the president, the prime minister, the that would show whether the register of the other defence forces and youth organizations were laid at country contains a match for a DNA sample found in the foot of the monument and representatives of the other country. Memento and of the Pro Patria and Res Publica If a match is found the usual legal assistance Union held speeches. The ceremony, enhanced by procedure concerning specific data will be launched. the Estonian Male Singing Society male choir The Prüm agreement covering a large part of the conducted by Kuno Areng, will be followed by an European Union, to which Finland is to accede in hour of remembrance at the Occupations Museum. summer, operates in the same manner. There were remembrance ceremonies of the The Prüm Treaty was signed in 2005 by Austria, March 1949 deportation in various parts of Estonia. Belgium, France, Germany, Luxembourg, the The deportation of March 25, 1949 was the Netherlands and Spain to improve cooperation to Soviet authorities’ second major wave of deportation fight terrorism, cross border crime and illegal from the three Baltic countries that had forcibly immigration. been annexed in 1940. A total of 94,779 people The interior minister of Estonia's outgoing were woken up during the night and taken away government, Kalle Laanet, has on numerous from their homes to Siberia and other remote parts occasions mentioned the need and the readiness of of Russia in the framework of an operation called Estonia, Latvia and Lithuania to join the treaty. Priboi. The Finnish DNA register contains data on about According to information of the repressed 50,000 persons and 9,000 as yet unidentified people's register there were 32,536 people from 3 Estonia listed for deportation. Of these 20,072 The president found that the public accord people were transported to Siberia in cattle cars in process must create and recreate public dialogue 19 separate trains. The office has information about and democratic choices. 10,331 people who were not deported but remained "Estonia needs intelligent dialog and debate to outlaws. develop our value judgments, unite our attitudes The youngest victim, Anne Ojaäär from Hiiumaa and way of thinking," the president said. Island, was only three days old when she was The Public Accord is a cooperation network of deported; she died a year later. The number of non-governmental organizations and civic deported children and juveniles was 6,607, 32 associations interested in Estonia's long-term percent of the total number of the deportees. development with the aim of acknowledging the The oldest Estonia victim was 95-year-old Maria parties views, negotiation and coordination as well Räägel from Abja rural community. A total of 1,934 as shaping on this basis assessments and proposals elderly people, more than 67 percent of the in key issues of the future of the country. deportees older than 60, died in Siberia. Above all it focuses on issues of public health, In the first major wave of deportation on June education, social security and regional development. 14, 1941 more than 10,000 people were taken away More than sixty organizations have acceded to the from from Estonia. All the deportations were carried public accord. out without any court sanction. Activity of the public accord is coordinated by the Public Accord Foundation established by President Stranded Russian Ship Pulled Free from Arnold Rüütel in 2003. The foundation publishes the Shallows off Estonian Island yearly digest Estonian Human Development Report. The president's office said renewal of the Public Mar 27 - Attempts to free a Russian-flagged Accord and reorganization of the activity of the freighter that had run into the shallows near foundation with the aim of making the process of the Estonian island of Osmussaar earlier this the accord more effective and productive would be week were crowned with success. completed this spring. A tugboat pulled the Baltiyskiy 102 free shortly before 2 p.m. Unloading of cargo from the freighter to make it easier to pull it free started shortly after 6 a.m.. ECONOMIC NEWS The Estonian border guard maritime surveillance center was notified at 1:08 a.m. on Sunday that the Currency rates in kroons Baltiyskiy 102, a 95-meter ship en route from (Bank of Estonia) Tallinn to a British destination with a cargo of timber, had run onto the Neogrund shallow situated Estonia, Russia Decided Launching of about five nautical miles to the northeast of Tallinn-St. Petersburg Flights Osmussaar. The freighter got stranded near the northernmost Mar 27 - Estonia and Russia agreed on the tip of the Neogrund shallow. The depth of the sea in opening of a new air route between Tallinn and the area ranges from half a meter to two meters St. Petersburg. compared with 22-75 meters in nearby areas of the The talks at the Transport Ministry of the Russian Gulf of Finland. Federation in Moscow focused on amending the Initial reports suggest the ship hit the shallow bilateral Estonian-Russian agreement on air traffic, because of a navigation error. so it would be possible to add to it Tallinn-St. Petersburg flights. Estonian President Initiates Amendment The air traffic agreement between Estonia and Russia was signed in summer 2000 and only the of Public Accord Foundation Statutes Moscow-Tallinn air route was specified in it. Mar 24 - President Toomas Hendrik Ilves On the Estonian part deputy secretary-general initiated amendment of the statutes of the for transport and transit service Nathan Tõnnisson, Public Accord Foundation with the aim of deputy head of the aviation and maritime straightening out activity of the foundation and department Allan Mall, director general of the extension of opportunities of the parties to Aviation Administration and first secretary of the develop participatory democracy in Estonia. Estonian embassy in Moscow Ivo Parmas took part The amendment will increase the role of parties in the negotiations. to the accord and reduce that of the head of state in the management of the foundation, including in the Foreign Investment in Estonia up by One- appointment of members of the supervisory board of Fifth in 2006 the foundation. As a result the process of the accord should start producing better results, become more Mar 26 - Foreign investments in the Estonian flexible and have more consideration of the economy in 2006 grew by one-fifth or 68 processes of functioning of the civic society, the billion kroons year on year to reach 377 billion president's office said. kroons (EUR 24.1 b), the Bank of Estonia said . "The civic society is not managed by the state The countries where most of the investments and by orders; the president's role in it is that of a came from were Sweden (44 percent), Finland (20 partner and supporter, not of the boss," Ilves said. percent) and United Kingdom (8 percent). The president said that only a neutral and The intense inflow of loans and cash that took politically independent non-governmental place last year resulted in changes in the structure cooperation network could successfully participate in of foreign investments by the end of the year, the shaping Estonia's development, promoting through Bank of Estonia said. Investments falling under the its activity democracy and civic responsibility in the title "other investments" grew by more than 40 country. percent and the share of such investments made up

4 36 percent of all foreign investments at the end of Consumer credit soared 86 percent year on year the year. to 8.9 billion kroons at the end of February, the The volume of direct investments grew by 15 central bank said. percent over 2005, with such investments Outstanding housing loans totalled 70.7 billion amounting to 194 billion kroons or 51 percent of all kroons, an annual increase of 61 percent. foreign investments. Loans to companies grew 58 percent during the Due to a modest increase in portfolio investments year to 88.2 billion kroons while loans to financing their share in the total value of Estonia's external institutions fell 56 percent to 9.2 billion kroons. liabilities declined. Loans to the government stood at 2.87 billion In foreign direct investments (FDI) made in kroons at the end of the month, virtually unchanged Estonia last year, the preferred fields of activity from the same time last year. were financial intermediation (40 percent), real The total value of outstanding loans issued by estate, renting and business activities (29 percent), Estonian banks was 185.9 billion kroons at the end and transport, storage and communications (10 of February, compared with 132.5 billion kroons at percent). A little over half of FDI came from Sweden the same time a year ago. while Finnish investors accounted for one-fifth. Investments from Estonia to other countries EMT Made MSN Available on Mobile Phone increased by 28 percent year on year to reach 181 Mar 26 - Customers of the Estonian mobile billion kroons. Investors in the field of financial operator EMT are able to use the Microsoft intermediation accounted for 65 percent of the total Windows Live Messenger instant messaging of outgoing investments from Estonia. Estonian service popular in the online world also on investors mostly invested in Germany, the other their mobile phones. Baltic states, Russia and United Kingdom. The Messenger service is based on a JAVA The position of DI from Estonia to other countries application that customers with a compatible device grew by more than 60 percent during the year to can download and save into their handset. The make up 23 percent of external liabilities. Portfolio service will be available in Estonian, Russian and investments grew by nearly 50 percent and English languages. accounted for one-third of external liabilities. In the initial phase the number of compatible Estonia's net investment position was negative by models of mobile telephones on the market here will 196 billion kroons at the end of the year, being just be around ten, but is set to gradually increase. four percent smaller than the country's GDP. The Messenger service was developed in Long-term capital made up 90 percent of the net collaboration between EMT, companies of the investment position. TeliaSonera group, and Microsoft. The technical

project managed from Estonia will be taken into use Estonia Confirms Fulfillment of Seven in companies of the entire TeliaSonera group. Directives to EU EMT is a subsidiary of Eesti Telekom, a listed Mar 22 - Estonian government confirmed company of the TeliaSonera group. answers to the European Commission concerning the implementation of seven EU Ekspress Grupp Increases Number of directives over which the EU executive had Subscriptions with IPO's Help started an infringement procedure. Mar 23 - Nearly 800 new direct debit All of the directives that caused the opening of agreements had been signed to subscribe for the infringement procedure have been implemented one of the two flagship newspapers of by now, the government said. Ekspress Grupp, giving the subscriber Four of the regulations belong in the area of preemptive rights to participate in the Estonian governance of the Ministry of Economy and media group's initial public offer. Communications, two, the Agriculture Ministry and Ekspress Grupp, guarantees 200 shares for one, the Finance Ministry. subscribers of either Eesti Päevaleht or Eesti The directives deal with motor vehicle type Ekspress who use direct debit as method of payment approval, measures against motor vehicle exhaust for their subscription. emissions, requirements for tractors, requirements The group also has set aside 200 shares per for plastics for food contact applications, and VAT person for rank and file employees of Ekspress arrangements applicable to radio and television Grupp, and 1,500 shares for each management broadcasting services. board member of the group's companies. The Estonia was supposed to report back to the quantities will be added to each other if an employee European Commission by April 1. is also a subscriber of one of the newspapers. Prime Minister Andrus Ansip said that Estonia has If all employees of Ekspress Grupp as well as all not yet transposed 1.1 percent of European eligible subscribers should use the preemptive right, directives, which is a better indicator in comparison the quantity to be sold in that manner would be with other member countries. The figure could soon bigger than the total number of shares offered in the drop to 1 percent. IPO, data released by the leaders of Ekspress Grupp

shows. Loans to Private Individuals Increased by 61 Percent on Year in Estonia Ministry of Finance Expects 4.9 Percent Mar 26 - Outstanding loans to private Inflation in 2007 individuals issued by commercial banks in Mar 21 - The inflation rate in Estonia will reach Estonia totaled 85.7 billion kroons (EUR 5.48 4.9 percent this year and quicken to 5.2 b) at the end of February, an increase of 61 percent in 2008, the Finance Ministry says in percent over the respective period a year ago. its spring outlook.

5 In 2009 inflation will slow to 4.4 percent, the ministry predicts. Considering also the forecasts for the following two years, 2010 and 2011, the inflation level will not be low enough for the country to fulfill the Maastricht criteria for the adoption of the euro. The country's chief lever to contain inflation is to carry on the previous budget surplus policy, Finance Minister Aivar Sõerd said at a news conference. The head of the ministry's economic analysis department, Andrus Säälik, said an inflation rate of up to 5 percent is in itself nothing dramatic for a developing member country of the European Union. He pointed at growing food prices and housing expenses as the principal sources of inflationary pressure. According to the Finance Ministry forecasts, the reasons behind this year's high level of inflation are the acceleration of wage growth due to robust economic growth and a marked drop in unemployment, on the one hand, and rise of housing-related administratively regulated prices, on the other. The impact of consumption-related factors will start diminishing in 2008, but the excise tax rises coinciding with the beginning of the year will cause further acceleration of inflation. However, from 2009 onwards developments relating to private consumption and wages are not expected to put further pressure on prices.

ESTONIAN REVIEW (ISSN 1023-1951) Is issued by the Press and Information Department, Ministry of Foreign Affairs ISLANDI VÄLJAK 1, TALLINN, ESTONIA 15049 TEL +372 637 7600 FAX +372 637 7617 Estonian Review is also available over the Internet at http://www.vm.ee To subscribe, please contact: [email protected]