Estonian Review E E S T I R I N G V A A D E VOLUME 18 NO 38 OCT 1- 7, 2008

FOREIGN NEWS FOREIGN NEWS NATO Visibility Important to Member States 1 October - Foreign Minister Urmas Paet met with USA Undersecretary of State for Political Affairs Dan Fried, who was in on a visit. Undersecretary Fried also met with President and Prime Minister . Within the context of NATO, the Estonian foreign minister and USA undersecretary of state discussed the changed security situation in the world. Urmas Paet and Dan Fried stated that increasing the visibility of NATO is very important for the inhabitants of NATO member states. “We Foreign Minister Urmas Paet and the Estonian delegation at the greatly appreciate the USA’s meeting of Baltic- Benelux foreign ministers in Sagadi, 2 October participation in Baltic air surveillance,” said Foreign Minister Baltic and Benelux Foreign Ministers: EU Solidarity in Paet. The USA is taking over the Relations with Russia is Essential tasks of NATO’s Baltic air-policing 2 October - The foreign ministers of the Baltic and Benelux nations mission from Germany. recognised at their meeting in Sagadi that the European Union and Foreign Minister Urmas Paet its member states must have close co-operation in issues within the also confirmed that Estonia Union as well as in relations on the global arena, including those continues to support the Euro- with Russia. Atlantic integration of Georgia and Foreign Minister Urmas Paet said that these get-togethers between the Ukraine, as well as the idea of foreign ministers of the three Baltic states and Belgium, Holland and giving NATO Membership Action Luxembourg are very valuable for international co-operation. “Mutual Plans (MAPs) to the countries at understanding and co-operation can be achieved through close relations. the first possible opportunity. USA Exchanging viewpoints in smaller groups within the European Union is Undersecretary of State Dan Fried essential for the solidarity of the whole European Union,” Paet said stated that the United States Foreign Minister Urmas Paet also stated that evidence of the European continues to support NATO Union’s solidarity can be seen in the joint activity that took place during enlargement. and after the Georgia crisis. “The European Union’s efforts succeeded in Another topic at the meeting stopping the military conflict in Georgia, organising humanitarian aid for was the continuation of the those who suffered in the conflict, and composing the European Union international missions in Iraq and Monitoring Mission, which began working in Georgia on 1 October,” Paet Afghanistan. Foreign Minister added. The foreign ministers of the Baltic and Benelux countries Urmas Paet stated that the emphasised that the European Union will be unitary and focused on presence of an international European values at the upcoming conference in Geneva, where matters of coalition in Iraq and Afghanistan is building up Georgia and political aid will be discussed, and also at the still necessary. “Estonia should conference of donors to Georgia taking place in Brussels in mid-October. continue contributing to Another topic at the Baltic-Benelux meeting was the European strengthening the security of Iraq Neighbourhood Policy’s Eastern Dimension. Significant emphasis was and Afghanistan for as long as placed on discussion of the future of the European Union. The ministers those nations still want our help,” agreed that by December’s Council, an action plan should be drawn up of said Foreign Minister Paet. The possibilities for moving forward with the Treaty of Lisbon. foreign minister also noted that The ministers also emphasised that the European Union must formulate beside the military contributions, an outlook for overcoming the financial crisis that is spreading through the Estonia would like to pay more world as soon as possible. The topic will be discussed at upcoming attention to increasing its civil meetings of the European Union foreign and finance ministers. contributions in both countries.

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FOREIGN NEWS NATO Visibility Secretaries General of NB8 Foreign Ministries Discuss Baltic Co-operation (continued from page 1) “Estonia is co-ordinating the building up of the 2 October - A meeting of the secretaries general health care sector in Helmand province in of the foreign ministries of Nordic and Baltic Afghanistan,” said Paet. nations (Nordic-Baltic 8 or NB8) took place in While talking about visa freedom with the USA, Tallinn from 1-2 October. Foreign Minister Urmas Paet said that Estonia has While talking about the joint activities of the taken all the necessary steps for achieving visa Baltic Sea states, Foreign Ministry Secretary General freedom. At the beginning of the week, Estonia and Matti Maasikas brought up Estonia’s co-operation the United States concluded an agreement to with Finland and Latvia as a positive example. prevent and combat serious crime, which was the Finland and Latvia represent Estonia for the issuing final requirement for visa freedom. “We hope that as of Schengen visas in over ten nations where Estonia early as the beginning of next year, Estonian citizens lacks its own foreign representation. “It is also will have the opportunity to travel to the USA important for the European Union to co-ordinate the without visas,” said Foreign Minister Paet. giving of consular aid in crisis regions,” said Maasikas. During the Russia-Georgia conflict, Estonia Supports Visa Liberalisation for Estonia co-operated with Finland, Latvia, Lithuania and Denmark to bring those citizens home. Serbia On the topic of energy security, Secretary 6 October - Foreign Minister Urmas Paet had General Maasikas stated that in order for it to be meetings with Serbian Prime Minister Mirko guaranteed, a well-functioning common energy Cvetkovići, Foreign Minister Vuk Jeremići, and market must exist among the member states. deputy speaker of the Parliament Gordana “Creating a common Nordic-Baltic energy market Čomići during his visit to Serbia. In all of the would help to increase the reliability of supplies,” meetings, Paet emphasised Estonia’s desire to said Secretary General Maasikas. intensify relations between the countries, both as The secretaries general also addressed matters bilateral relations and also in the European Union related to the European Neighbourhood Policy. dimension. According to Maasikas, co-operation with the Estonia’s position is that visa liberalisation Neighbourhood Policy’s Eastern Dimension states agreements for Serbia and the other Western Balkan should be strengthened. A good basis for this is countries are a matter to be decided in the near provided by the proposals made by Sweden and future, Foreign Minister Urmas Paet said in his Poland in May. meeting with Serbian Prime Minister Mirko Co-operation of the Nordic and Baltic nations, or Cvetkovići. “A visa liberalisation agreement is very NB8, is a regional co-operation format that includes important for the Serbian community,” Paet Sweden, Finland, Norway, Iceland, Denmark, emphasised. Estonia, Latvia, and Lithuania. Estonia is the co- “It is in Estonia’s interests for the Western ordinating nation for NB8 foreign policy co-operation Balkans to be a stable and developing region, and in 2008. This position will be passed on to Iceland in Estonia is prepared to share its own experiences 2009. from preparing for EU accession with Serbia. We also think visa freedom for citizens of Serbia and other Western Balkan nations is essential, as is achieving the status of a European Union candidate state,” he added. At the meeting, it was confirmed that the heads of state of both Estonia and Serbia would like for relations between Serbia and Estonia, including economic relations, to develop more rapidly than before. “So that relations between the two nations could grow to a new level, we would like to reach the final stretch of the agreement for the avoidance of double taxation as soon as possible,” discussed Foreign Minister Paet. “The conclusion of the agreement for the avoidance of double taxation will give a positive boost to the growth of Estonia-Serbia trade relations and investments,” said Paet. While The secretaries general of the NB8 foreign talking about developing bilateral relations, the ministries in Tallinn, 2 October possibility of teaching Serbian at Tartu University was discussed. Estonian Observers Started Work in Paet confirmed that Estonia supports Serbia’s Georgia rapid development in co-operation directed towards the European Union and NATO. Foreign Minister Paet 1 October - The European Union Monitoring also extended an invitation for his Serbian colleague Mission, which includes two Estonian to visit Estonia, which the latter accepted. observers, started its work in Georgia this week. The monitors from Estonia are Tamar Tamm,

chief of the logistics department of the Southeast border guard district, and Piret Palusoo, adviser at the police college of the Estonian Public Service International Development Association on Academy. behalf of Estonia. The Estonians are assigned to the Poti field office After accession to the IDA, Estonia will be able to in western Georgia, near Abkhazia, along with 10 support the development of poorer countries monitors from Spain, eight from Greece, four from through the organisation. Austria, and three from Hungary and Latvia each. Estonia's one-off mandatory contribution to the IDA Lithuania has sent five monitors, who operate out of is nearly 10 million kroons (EUR 0.64 mln). In the Zugdidi field office also in western Georgia, addition, a payment in the sum of 2.2 million kroons along with monitors from Italy, Germany, Czech will have to be made into the IDA's previous Republic and Lithuania. financing rounds. Estonia is expected to contribute Estonia was ready to send nine people on the 34.9 million kroons in funding over the next 3-9 monitoring mission, but was asked to send only two years for less developed countries. under the current arrangement between the 22 The IDA was established in 1960. It is one of five countries taking part in the mission. World Bank units that provide funding for the Under the French-brokered deal, the observers, poorest developing nations. It grants long-term numbering at least 200, must monitor the so-called interest-free credit to countries where the annual buffer zones that emerged following the war in average income per head of population is below August, from which Russian troops must pull out by 1,065 US dollars. The IDA has 167 members. 10 October. The EU expects to co-ordinate the gradual withdrawal of Russian forces and the arrival of DOMESTIC NEWS Georgian police so as to avoid a security vacuum. Ministry of Education to Provide Illegal Immigration a Concern for Entire Schoolteachers with Laptops European Union 4 October - An estimated 15,000 teachers in Estonia could receive a laptop computer from 3 October - Foreign Minister Urmas Paet met the Ministry of Education and Research during with Maltese Foreign Minister Tonio Borg, who the next few years. was in Estonia on a visit. The goal is to supply all teachers in state- The ministers spoke thoroughly about illegal financed general education schools with laptops immigration from Northern Africa, which is a cause during the years 2008-2010. A teacher must work at for concern in Malta, the other Mediterranean Sea least half-time to qualify for a free computer. states, and the entire European Union. For Malta, it There are 12,845 teaching jobs at Estonia's is a major concern and problem that cannot be dealt general education schools this academic year, filled with alone. Both ministers emphasised the by 15,000 different people. importance of European Union solidarity in fighting The first 4,000 laptops are to be handed out illegal immigration. “The solution to the problem lies before the end of this year. in European Union co-operation, but especially in The first batch comes from Microlink Eesti, which European Union co-operation with Northern African in a public procurement tender held by the Tiger's nations. We can fight the initial problems that cause Leap Foundation offered to supply HP Compaq illegal immigration from those nations,” said Paet. 6910p business class laptops for 36.1 million kroons In talking about the future of the European (EUR 2.3 mln). Union, the Estonian and Maltese foreign ministers An arrangement for the renewal of the computers agreed that although the Treaty of Lisbon is is still to be worked out. currently blocked, that should not be a reason to halt further enlargement of the European Union. “Negotiations with Croatia should be carried out to completion, and the other candidate states should DEFENCE NEWS have enlargement perspectives regardless of Government Approves Draft Act for developments regarding the Treaty of Lisbon,” Paet Continuation of Afghani Mission emphasised. While talking about European Neighbourhood 2 October - The government approved the draft Policy, the foreign ministers agreed that unified of a resolution regarding Estonia’s actions towards the Eastern Dimension are essential participation in Afghanistan and has now sent for the stabilisation of the region and for tighter it to the . The resolution concerns integration with the European Union, including from extending the ’ mission in an energy security standpoint. In talking about the Afghanistan to the end of 2009 and increasing the Southern Dimension of the Neighbourhood Policy, maximum number of Defence Forces members the topic of the Mediterranean Partnership was serving in Afghanistan to 170. addressed. The current mandate of the Riigikogu, which Foreign Minister Paet recognised Malta’s active expires at the end of 2008, provides for deploying participation in finding solutions to problems in the up to 150 members of the Defence Forces to Mediterranean Sea region, as well as Valletta’s Afghanistan. In 2009, Estonia intends to increase desire to become the location of the secretariat of the contingent in Afghanistan to include a tactical air the Mediterranean Union. control party and an improvised explosive device disposal team (IEDD team). Consequently, the Ministry of Defence wants to raise the upper limit to Estonia to Join International 170 members of the Defence Forces. Development Association According to Minister of Defence Jaak Aaviksoo, 1 October - The government plans to authorise participation in the international peace support the finance minister to sign the statutes of the operation in Afghanistan is directly related to the security interests of the Estonian state. “The

3 situation in Afghanistan is still complicated, and the the ministers were of the opinion that the current drug trafficking and terrorism originating from security situation is stable; however, the continued Afghanistan represent a direct threat to Estonia’s presence of the EU is still needed in Bosnia- security,” Aaviksoo said. Herzegovina due to the tense political situation. "The quality of our contribution will also increase The ministers deemed it necessary for the EU to with a larger Estonian contingent, as we will provide further counter piracy off the Somalia coast in new and more complicated capabilities, which are addition to the EU co-ordination initiative launched required not only for international operations but in September. also to protect our own territory, if necessary,” Minister of Defence Jaak Aaviksoo and his Dutch Aaviksoo added. counterpart Eimert Van Middelkoop signed a The draft of the mandate also provides for bilateral defence-related co-operation agreement. doubling the upper limit of the members of Defence The previous agreement concluded between Estonia Forces twice a year during the rotation of the and the Netherlands dates back to 1997. soldiers that participate in the operation, allowing 340 members of Defence Forces to be present in the Deputy Chairman of NATO Military area. The Estonian infantry company has had its Committee Praised Estonian own area of responsibility in Afghanistan, Now Zad, Contributions since 2007, and it cannot remain unmanned during the rotation. Therefore, twice a year (in May and 3 October - Minister of Defence Jaak Aaviksoo November), a temporary simultaneous presence of met with Lieutenant General Karl Eikenberry, both the departing and deployed units in the area of the deputy chairman of the NATO Military operation is required. This contributes to a smooth Committee, to discuss the aftermath of the take-over of the area of responsibility by the Russia-Georgia conflict, NATO transformation, deployed units, while the departing unit can transfer and the operation in Afghanistan and its its knowledge concerning the area of responsibility future. and the enemy. Subjects related to developing NATO’s multi- There are currently 140 members of Defence national capabilities were also discussed at the Forces serving in Afghanistan. The largest part of meeting. Estonia participates in a number of Estonia’s contribution to Afghanistan is the Estonian initiatives, such as the strategic airlift capability infantry company, which forms a part of the (SAC) project and the British-French helicopter Helmand Task Force, under the command and initiative. control of the United Kingdom, and a mortar The reinforcement of the NATO Response Force platoon, deployed to support the infantry company. (NRF) was also an important topic discussed at the The Estonian contingent also includes a cross meeting. “Estonia will contribute actively to NATO service team at Kabul airfield, a military police close operations, while also continuing to contribute to protection team, a number of staff officers, serving NRF,” Minister Aaviksoo confirmed. at different HQs and a national support element. Lieutenant General Eikenberry praised Estonia’s The Estonian Defence Forces have been participating capability and willingness to contribute to NATO-led in the operation in Afghanistan since 13 March 2003. operations in Afghanistan and Kosovo and, above Estonia participates in the ISAF operation under the all, the activities of the Estonian Defence Forces in UN mandate and has been extended an invitation by Helmand province, in southern Afghanistan. The the democratically elected parliament and deputy chairman of the NATO Military Committee government of Afghanistan. also acknowledged the national defence model chosen by Estonia, which combines professionals, EU Defence Ministers Discuss Military members of the Defence Forces, and reservists. Capabilities Lieutenant General Eikenberry, who visited Estonia at the invitation of the commander of the 2 October - Minister of Defence Jaak Aaviksoo Defence Forces, will also meet Chairman of the participated in an unofficial meeting of the National Defence Committee Mati Raidma, as well as European Union defence ministers in Deauville, visit the NATO Centre of Excellence for Cyber France. The development of the military capabilities Defence and the Ämari Air Base during his stay in of the European Union formed the basis of Estonia. discussions. The more efficient activities of the European Estonia to Contribute Two Pilots to Defence Agency through different capability French-British Helicopter Initiative development projects were discussed. “The development of joint military capabilities should be 2 October - Two military pilots from Estonia are the priority of the European Security and Defence to receive training as part of the Franco-British Policy. The joint helicopter initiative of the United initiative aimed at plugging a chronic shortage Kingdom and France has been launched successfully of helicopters able to conduct peacekeeping and Estonia will contribute to this initiative with two missions. pilots,” commented Minister of Defence Jaak Once the pilots have obtained their qualifications Aaviksoo. they will be employed on NATO or EU missions. Other topics of discussion included the need for Training of the pilots will start in the near future. developing the European defence industry and Countries are participating in the helicopter market, defence co-operation, and the use of the EU initiative according to their capabilities, contributing Battlegroups. either helicopters or personnel or providing training. The European Union defence ministers also The shortfall in helicopter capacity is known to discussed the European Union military operations in have hit EU security plans, forcing it to delay Bosnia-Herzegovina and Chad and the problems of operations. piracy off the Somalian coast. When discussing the Under the scheme, European armies with the operation in Bosnia-Herzegovina (EUFOR ALTHEA), ability to run helicopter missions in regions such as

4 Africa and Afghanistan will share those capabilities According to Milder, the reason behind the with others. These could range from training successful third quarter is stable solid sales on the personnel for such conditions to equipping Central and East European markets and strong helicopters with the dust filters needed for flights in supply at the start of the fall season. desert conditions, a report this spring said. In Central Europe retail sales soared 82 percent, The Franco-British initiative was launched in in East Europe 20 percent, and in the Baltic states 1 March and is due to work in conjunction with NATO's percent of growth was recorded in the third quarter. military headquarters in southern Belgium. The nine-month sales revenue came in at 887 million kroons, up by 5 percent from the same period last year. ECONOMIC NEWS At the end of September Baltika Group had 125 stores with a total sales area of 24,770 square EU Heads of Government Made Joint meters. The company plans to open 9-11 more Statement on Stability of Financial stores within this year. System 6 October - The heads of government of the European Union made a joint statement at the initiative of France, the holder of the presidency of the European Union, in which they confirmed their readiness to apply all means necessary for ensuring the stability of ESTONIAN REVIEW the financial system. (ISSN 1023-1951) “We are ready for additional injections of liquidity Is issued by the from central banks, activities for restructuring Press and Information Department, Ministry of Foreign Affairs individual banks and expanding deposit insurance,” ISLANDI VÄLJAK 1, TALLINN, ESTONIA 15049 reads the common statement made today. TEL +372 637 7600 The statement provides that although depositors FAX +372 637 7617 have not lost money in any EU member sate in the Estonian Review is also available over the course of the current crisis, all required measures Internet at http://www.vm.ee will be applied to protect the financial system as a To subscribe, please contact: [email protected] whole, as well as individual depositors. “By applying these measures, we recognise the need to co- operate closely,” the statement says.

Shipper Tallink’s Passenger Numbers up 12 Percent in September 3 October - Ships of Estonia's Tallink carried in September a total of 562,392 passengers, nearly 12 percent more than in the same month a year ago. The biggest increase in passenger numbers was recorded on the Latvia-Sweden route, Tallink said, attributing the 32.7 percent growth to putting a bigger vessel into operation on the line. On the Estonia-Finland route, Tallink carried 239,264 passengers last month, up by 15 percent year on year. Travellers between Finland and Sweden numbered 225,796, almost 8 percent more than in September 2007, and the number of passengers on the Estonia-Sweden route, at 53,930, represents a year-on-year growth of 11.2 percent.

Baltika’s Q3 Sales up 9 Percent on Year 2 October - Consolidated sales of the Estonian garment group Baltika totaled 336 million kroons (EUR 21.5 mln) in the third quarter, representing an increase of 9 percent from the same period last year. Retail sales grew by 10 percent and wholesale by 19 percent year on year. Comparable store sales growth was 7 percent. The growth was strongest in August with total sales surging 23 percent. CEO Meelis Milder said third-quarter sales show continuation of the turnaround in the company's business cycle that started in summer. "Focusing on raising efficiency on large markets has produced the desired result -- Baltika is at the moment rather bucking the trend in the Estonian economy," he said.

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