Estonian Review E E S T I R I N G V a a D E VOLUME 16 NO 49 DEC 13 - 20, 2006 M E R R Y C H R I S T M a S !

Estonian Review E E S T I R I N G V A A D E VOLUME 16 NO 49 DEC 13 - 20, 2006 M E R R Y C H R I S T M A S !

FOREIGN NEWS Foreign Minister Opens Estonian Embassy in Georgia, PM at European Council Supports Meets With Georgian Leaders EU Enlargement Dec 19 – On a two-day visit to a key Western-friendly country Dec 14 – Speaking at the European in the Caucasus, Estonian Foreign Minister Urmas Paet Council, Estonian Prime Minister opened the Estonian embassy in Tbilisi and met with Andrus Ansip expressed firm support Georgian leaders. for further enlargement of the Paet met with President Mikhail Saakashvili, Prime Minister European Union (EU). Zurab Noghaideli and State Minister Giorgi Baramidze. The embassy "It is the main duty for Estonia in Georgia is the only Estonian mission in the southern Caucasus. and other member countries to better Bilateral relations, Georgia's Euro-Atlantic aspirations and explain the positive aspects of Georgian-Russian relations were discussed during Paet's meeting enlargement," Ansip said. with the Georgian president. The Prime Minister underlined that The parties found that the opening of the Estonian embassy the European Union must keep the would raise Estonian-Georgian relations to a qualitatively new level. promises given to countries taking part in President Saakashvili expressed the hope that Estonian businessmen the enlargement process in accordance and tourists would now become more interested in Georgia. Georgia with their achievements in the is planning to start building its embassy in Tallinn next year. implementation of reforms. Saakashvili gave an overview of the current state of affairs in Ansip underlined that the Georgian-Russian relations and the situation in Abkhazia and South accession criteria are clearly defined and Ossetia. Paet said that both the European Union and Estonia had obligatory for all countries aspiring for EU expressed support for Georgia in its tensions with Russia, and said membership. Russia would still remain an important neighbour for Georgia. "Estonia is pleased to welcome "It is necessary to focus on activities related to NATO and Bulgaria and Romania as countries soon to the European Union and to speak about achievements in that become members of the European Union," context. Behaviour that could be interpreted as being provocative or Ansip said. "We appeal to the acceding a reaction to provocations will not benefit either of the sides," Paet countries to continue carrying out reforms, said. which would set a good example also for Mainly economic issues were addressed during Paet's other membership applicants." meeting with Prime Minister Noghaideli. The Georgian premier said Ansip said accession was a long that Georgia had chosen a course of implementation of liberal process and so the European Union had economic policies and the first steps in that direction had already time also for the necessary internal proven themselves with the expected economic growth nearing 10 reforms parallel with the ongoing percent this year. Russian economic sanctions had forced Georgia to negotiations. start looking for new markets. In its conclusions the European Council stated that enlargement had been very successful for the EU and had led to the growth of prosperity and stability throughout Europe. The European Council welcomed accession of Bulgaria and Romania to the European Union. "The European Council sent a clear message that the door was open to all European countries meeting the criteria," Ansip said. The European Council also confirmed the Commission's proposal to continue accession talks with Turkey. In response to Turkey's unwillingness to open its airports and ports to Cypriot vehicles, it was decided not to open accession talks in issues pertaining to functioning of the Estonian Foreign Minister Urmas Paet and Georgian Foreign domestic market. Minister Gela Bezhuashvili at the opening of Estonian effective. Embassy in Tbilisi, December 18, 2006 (Continued on page 2)

(Continued from page 1) year the Foreign Ministry gave 800,000 kroons to In addition to enlargement the central issues support a humanitarian assistance project in Sudan. of the EU summit were increasing the efficiency of The country has been in a civil war for 21 years, and the decision-making process in justice and internal as a consequence of its devastating results the matters as well as immigration policy. United Nations has classified Sudan as one of the In his speech, the prime minister drew biggest humanitarian disaster areas in the world. attention to the need to strengthen border controls The European Council also adopted a and the capability of institutions ensuring it. declaration on the Middle East, pointing out that the He also said that Estonia supported area was facing one of the most serious crises over cooperation with third countries both in terms of years. legal migration as well as in the fight against illegal Paet said the European Union was prepared immigration. to do its utmost to overcome the impasse in the In the sphere of justice and interior affairs peace process and alleviate tensions in the whole the heads of state and government pointed up the region. need for more cooperation. The scrapping of borders "The Gaza ceasefire is the first significant between the member countries has led to the need step towards detente. But there is sense in the to better coordinate the work of police institutions ceasefire only if the violation stops and the political and improve activity related to the guarding of process supports it," he added. external borders of the bloc. The European Council underlined the need The discussion focused above all on the for urgent and full implementation of the Middle East issue how to make decision-making in justice and roadmap, starting with freedom of movement and interior issues faster and more effective. Several full guarantees of accession, release of prisoners member countries underlined the need to move on and restoration of security cooperation. with the EU Constitutional Treaty. The Estonian foreign minister said that these Estonia, too, found the Constitutional Treaty would preliminary but important steps must lead to be the best solution to make the decision-making meaningful talks over the final status of Palestine. process more effective. "The aim, after all, is putting an end to the occupation that started in 1967 and creation of an Estonian PM at EU Summit Underlines independent, democratic and viable state of Need for Supporting Afghanistan Palestine.” In case of Iran, foreign ministers of the Dec 15 - Speaking at the European Union (EU) European Union expressed the concern that Iran's summit in Brussels, Estonian Prime Minister politics would have a negative effect on the security Andrus Ansip underlined the need to pay more and stability of the Middle East. Paet said that Iran attention to Afghanistan. had become the most powerful country in the Middle Ansip underlined that the EU must pay more East. attention to Afghanistan. He said that he had been "Iran must take a considerably more to Afghanistan a few days ago and could see that responsible stance to its role in that region," Paet situation there was complicated. underlined, adding that Estonia expected a "President Karzai and the government have diplomatic settlement of nuclear issues. Paet clear aims but the country cannot be turned in the regretted that Iran had not seriously taken direction of democracy without international proposals by EU foreign policy chief Javier Solana. assistance. It is very important that by this declaration we express clear readiness for long-term Foreign Minister Opens Estonian Embassy support of Afghanistan," Ansip said. in Georgia, Meets With Georgian Leaders Foreign Minister: Violence in Sudan Must (Continued from page 1) End The Estonian foreign minister encouraged Georgia to look for new markets in order to reduce Dec 15 - Speaking at the EU foreign ministers' their producers' heavy dependence on the Russian meeting at the European Council in Brussels, market. Estonian Foreign Minister Urmas Paet said that "Estonia's present economic success is the violence in the Darfur region of Sudan had largely based on the double customs duties Russia to end and all warring parties would have to established in the middle of the previous decade. We respect human rights. were then in a situation where new markets had to "The Sudanese government must commence be found for our goods," Paet said. cooperation with the international community, since Paet said that growth of interest in the level of violence in the country requires rapid investment opportunities in Georgia could be intervention," Paet said. observed among Estonian businessmen. The European Council adopted a declaration "Georgian experts distributing information expressing concern over the worsening security and about investment are always welcome in Estonia. At humanitarian situation and the violation of human the same time Georgia must continue building up a rights in Darfur. stable and transparent business environment in Paet said the extension of violence in Darfur order to attract investments," Paet said. had led to sharp deterioration of the human rights The Estonian foreign minister's meeting with situation in Darfur and human rights operations Baramidze, the Georgian state minister for Euro- there have had to be interrupted. Atlantic integration, focused on Georgia’s aspiration Estonia has supported improvement of the toward Euro-Atlantic structures and ongoing humanitarian situation in Sudan since 2004. This reforms. Foreign Minister Confirms Wish to NATO, but relations with Russia and frozen conflicts Continue Development Cooperation with were also dwelt upon. Kezerashvili thanked Estonia for supporting Georgia Georgia's aspirations toward NATO. Paet underlined Dec 18 - Estonia wants to continue close that the two countries' defence cooperation was development with Georgia with mainly good and would continue in the future. Georgian needs in mind, Estonian Foreign Paet said relations with Georgia on the level Minister Urmas Paet said. of intensified dialogue meant for Georgia new Paet met with his Georgian colleague Gela opportunities, but also obligations and the need to Bezhuashvili. The meeting focused on bilateral continue doing its homework. "We on our part will relations, further aims of development cooperation, contribute to the continuation of reforms by means Georgia's aspirations on the NATO and European of our advisers and development assistance," Paet Union course as well as relations with Russia and said, emphasizing the need for carefully planned frozen Georgian conflicts. political, economic and defence reforms while Bezhuashvili said that relations with Estonia moving toward NATO. were a priority for Georgia and the Estonian The defence minister gave an overview of experience was invaluable to them. reforms being carried out and being planned in the Paet underlined that Estonia wanted to Georgian defence forces and participation in continue close development cooperation with international missions was also discussed. Georgia. He said that development cooperation Kezerashvili also expressed the hope that would be based above all on Georgia's needs, and intensified dialogue with NATO would eventually lead therefore Estonia was waiting for concrete proposals to a possible membership action plan and expressed from Georgia concerning the areas in which satisfaction at the pace of the withdrawal of Russian assistance was needed the most. troops. Paet added that tripartite development During Paet's meeting with Mikhail cooperation projects would certainly be continued Machavariani, Deputy Speaker of the Georgian and underlined the importance of international parliament, the discussion mainly focused on coordination in the development assistance sphere. interparliamentary cooperation, development of Until the present tripartite development cooperation bilateral relations and issues pertaining to the EU. projects with respect to Georgia have had been Paet said that in the implementation of carried out together with Finland, Iceland and reforms Georgia would have to make maximum use Sweden. of opportunities granted by the recently signed The meeting also focused on the two European neighbourhood policy action plan. "We are countries' economic relations. Paet said the ready to share our assistance and experience in the contractual basis needed strengthening and in process of the harmonization of legislation," he addition to the agreement on the avoidance of added. double taxation signed December 18, an agreement Georgian First Deputy Foreign Minister Valeri on the protection of investments would also have to Chechelashvili hosted an official luncheon for Paet. be signed in the near future. The Georgian foreign minister gave an Estonia Supports Guarding of Georgian overview of Georgia's foreign policy preferences next Borders year and expressed the hope the dialogue with NATO would lead to the granting of a membership Dec 14 - Estonia has earmarked 100,000 euros action plan by next fall. He also underlined the for the support team of the European Union's Georgian plan to fulfil the European neighbourhood special envoy advising Georgia on the policy action plan in three years instead of five. implementation of the border service reform. Paet underlined that Estonia supported the The EU special representative's (EUSR) territorial integrity of Georgia and international border support team in Georgia was set up last year efforts in the solution of those conflicts. "Georgia with the primary objective of assisting and advising must reserve patience; peaceful settlement of the Georgian authorities on implementing border conflicts can only take place gradually," Paet said. management reform. Paet said Estonia shared the Georgian view For the funds contributed by Estonia, that the CIS peacekeeping mission was not doing its vehicles and other equipment will be purchased for duty. "We are in favour of a bigger role of the the support team. Since the work of the team European Union in the solution of frozen conflicts involves activities in mountainous regions of Georgia and are seeking the best solution to it within the it is considered essential for it to have suitable European Union's possibilities," he said. transport. Foreign Minister Urmas Paet said the EUSR Foreign Minister Confirms Estonia's border support team is unique in that it addresses border management questions on all levels starting Support for Georgia's NATO Aspirations from strategy and ending with the management of Dec 19 - Estonia supports Georgia's aspirations individual checkpoints. toward both NATO and the European Union "Georgia is very interested in our experience (EU) and is ready to contribute to the in this field as Estonia has successfully built up its continuation of reforms, Foreign Minister own border control system," the minister said. Urmas Paet said. Estonia has been participating in the On day two of a visit to Georgia, Paet met program since its launch by contributing a border with Georgian Defence Minister David Kezerashvili expert to the team's foreign advisers unit. Georgia is and Deputy parliamentary Speaker Mikhail one of the four priority partners of Estonia's Machavariani. development cooperation program and supporting The discussion with Kezerashvili focused the South Caucasian country is a priority of Estonian above all on Georgia's endeavours to accede to foreign policy.

3 Foreign Minister Sets Aside EUR 24,000 Yushchenko offered an overview of the for Training of Georgian Police preparations made by Ukraine for accession to the World Trade Organization (WTO), saying that Dec 16 - The Estonian Foreign Ministry has preparation of the necessary legal norms is expected allocated 374,120 kroons (EUR almost 24,000) to be completed still this year. to support the training of patrol police from Georgia. PM: Estonia Backs Ukraine's Western The project was drawn up in collaboration between the Foreign Ministry of Iceland and the UN Aspirations mission in Georgia and its goal is to promote the Dec 13 - Topics related to the European Union development of a democratic police organization in and NATO emerged as central during a meeting Georgia. of Estonian Prime Minister Andrus Ansip and In the framework of the project training will Ukrainian President Viktor Yushchenko in be organized for instructors from the Georgian Tallinn. Interior Ministry Academy and police officers from Speaking about the EU and NATO, Ansip the Samegrelo-Zemo Svaneti region at the police reaffirmed Estonia's all-round support for the college of the Estonian Public Service Academy. respective aspirations of Ukraine. In the the six-week course, Estonian experts "NATO is based on very clear common will teach the Georgian officers the foundations of values," the Estonian premier said. "The more there contemporary police work and the newest methods are countries which share the same values, the in the organization of work and training of police more secure we can feel. Therefore Estonia supports responsible for the maintenance of law and order. continuation of the open doors policy of NATO. Georgia is one of four countries with priority Ansip said that a democratic Ukraine can in Estonia’s development cooperation and supporting always be confident of Estonia's support. Georgia is one of Estonia's foreign policy priorities. Yushchenko said Ukraine was taking concrete steps toward membership in both the EU as Foreign Minister Reaffirms Support for well as the defence alliance and considered Ukraine's Democratic Development informing people at home as particularly important. The president separately highlighted the progress Dec 13 - Meeting with Ukrainian President achieved in cooperation with the European Union in Viktor Yushchenko, Estonia's Foreign Minister the field of energy security. Urmas Paet said Estonia continues to support "There will be no change in the democratic the aspirations of Ukraine toward both the course chosen by Ukraine," Yushchenko said, European Union and NATO. offering thanks on behalf of himself and the Paet and Yushchenko spoke about bilateral Ukrainian people to Estonia for the support extended relations, Ukraine's aspirations as regards the EU to Ukraine. and NATO, and the situation in Transnistria. Yushchenko made a proposal to jointly They said they were pleased with the sponsor student exchanges between the two economic and cultural cooperation between the two countries or the possibility to get education in one's countries of so far, adding that there are other areas mother tongue in the other country. of cooperation which need to be developed. The president offered Ukraine's support for The Ukrainian president thanked Estonia for the implementation of such projects and also the reform experience shared in the framework of expressed hope that soon a new information and development cooperation. culture centre will be set up for the 28,000 or so Paet said Estonia regards the more active Ukrainians living in Estonia. role of the EU vis-à-vis Ukraine as important. "We wish to contribute to the development Yushchenko Says Estonia Good Example of a democratic and sustainable civil society in Ukraine," he said. for Ukraine Also talked about were matters related to Dec 13 - In a speech to the Estonian the agreements on simplified issuance of visas and a parliament, Ukraine's President Viktor new cooperation agreement between the EU and Yushchenko recognized the progress made by Ukraine. Paet said that Estonia supports Ukraine's Estonia and said Estonia was a good example Europe aspirations, stressing that Ukraine must for Ukraine. definitely go on with domestic political reforms. Estonia and Ukraine are true and decided The Ukrainian president said membership of partners, who belong among the bearers of the idea the EU and NATO would mean for Ukraine a of European unity and are contributing now and will guarantee of sovereignty and security and continue to contribute in the future to the spread of continuation of democratic development. democracy in the area between the Baltic Sea and Also discussed was Ukraine's Euro-Atlantic the Black Sea, Yushchenko said. integration. Ukraine, said Yushchenko, is sincerely happy "We back giving a membership action plan about Estonia's success in national revival, progress to Ukraine, which however requires an unequivocal of statehood and economic growth. and firm wish on the part of Ukraine," Paet said. "We applaud your reforms, which have Both sides valued positively the activity of brought Estonia into the EU and NATO, you are a the EU border mission in Transnistria on the good example for us," he said. Ukrainian-Moldovan border. The Ukrainian president "We remember and value the fact of mutual stressed the need to involve the international diplomatic recognition by independent Ukraine and community still more in finding a solution to the the Estonian state in the early part of the 20th problem. Paet said Estonia wants the Transnistria century," the Ukrainian leader said, adding that the conflict to be solved peacefully. countries have not forgotten the repressions and

4 attempts at annihilation that they went through. Bulgarian Ambassador Presents "Like its own pain, Ukraine is sharing the Credentials in Estonia pain of the Estonian people that was caused by a totalitarian regime in the 20th century. On behalf of Dec 14 - Bulgaria's Ambassador to Estonia all compatriots, I extend words of gratitude to the Plamen Bonchev presented his credentials to Estonian Riigikogu, which at the beginning of the President Toomas Hendrik Ilves. 1990s was the first among the parliaments of the Ilves congratulated Bulgaria on the country's world to recognize the famine of 1932-33 as forthcoming entry into the European Union and genocide against our nation," Yushchenko said. confirmed Estonia's intention to open its labour Relations between Estonia and Ukraine market to nationals of Bulgaria and Romania. nevertheless are in need of quantitative growth, said "I'm especially glad that you are presenting the president, such as through cooperation between your credentials at this particular moment, parliaments. Also having good outlooks are figuratively speaking just a moment before your economic cooperation, investments, and dialogue country's accession to the European Union," Ilves between business circles. told the ambassador. Ukraine wishes to open a new information The president asked about the progress of centre in Tallinn, a Ukrainian language class in an Bulgaria's preparations for joining the EU and the Estonian school, and later also a Ukrainian school. country's priorities as a future member state of the The Ukrainian president said he values bloc. He observed that Estonia and Bulgaria are efforts by the Estonian authorities to support the getting along well and the bilateral relations have Ukrainian community living here. intensified of late. The president added that he sees "In this field I am in favour of a simple and great opportunities for cooperation in trade and understandable philosophy. National minorities have investment. an absolute right to preserve their identity, but at As a member state of the EU, Bulgaria will the same time they must respect their second home be closely linked with Estonia not only by the country, know its language, culture, and be active traditional strong ties but also as a close partner, citizens. Therein lies the essence of healthy and Bonchev said. open-minded relations between peoples," he said. The Bulgarian ambassador resides in the Speaking about Ukraine, Yushchenko said Finnish capital Helsinki. democratic changes in Ukraine have become irreversible. Yushchenko said the country is a part of Bosnian Ambassador Presents Credentials Europe in terms of civilization and geopolitics and in Estonia that this will take it firmly toward the EU and NATO. Dec 14 - The ambassador of Bosnia and The tactics of political forces may be Herzegovina to Estonia, Jakov Skocibusic, different, but the strategy of Ukraine's progress has presented his letter of credence to President become a vital reality, the president said, Toomas Hendrik Ilves. reaffirming Ukraine's goals of national revival, Estonia and Bosnia and Herzegovina are democracy, liberties, economic growth, and full- enjoying good relations which have become closer in fledged participation in European and Euro-Atlantic recent years, the president noted. He added at the institutions. same time that relations at all levels could do with

further development and contacts need to be forged Estonian Ambassador to UN Elected to between different ministries and institutions, the UNIFEM Advisory Committee president's office said. Dec 18 - The General Assembly of the United "We view a clear European prospect for States elected the Estonian Ambassador to the Bosnia and Herzegovina as important and are United Nations, Tiina Intelmann, to the offering all-round assistance with the reforms Advisory Committee of the United Nations necessary for this," Ilves said. Development Program for Women. The Bosnian diplomat characterized his Intelmann, elected member of UNIFEM for a country's relationship with Estonia as friendly but term of three years, will represent all countries of not sufficiently strong as of yet. the East-European region on the Advisory "We are grateful for Estonian help in Committee. securing peace and stability in Bosnia and The five-member committee is headed by Herzegovina and support in the implementation of the Jordanian Ambassador to the United Nations, reforms that we need," Skocibusic said. Prince Zeid Raada. The ambassador resides in Stockholm. The United Nations Development Program for Women is an organization of the United Nations President Hands Outgoing Austrian with the mission of giving financial and technical aid Ambassador High State Award to programs and strategies promoting the women's Dec 14 - Estonia's President Toomas Hendrik right of decision and gender equality in society. Ilves thanked the outgoing ambassador of UNIFEM focuses on a number of spheres in Austria, Jakub Forst-Battaglia, and handed him its operations: reducing poverty of women, ending the Order of the Cross of Terra Mariana, 1st violence against women, prevention of the spread of class. HIV/AIDS among women and girls, and aspiration Ilves thanked the Austrian ambassador for for gender equality in democratic management. his contribution to the development of bilateral Estonia is a UNIFEM donor country; it relations and in recognition of his services presented donated 150,000 kroons (EUR 9,600) to the him with the Order of the Cross of Terra Mariana, organization for next year.

5 the president's office reports. meeting hoped to hear Russian views on a package The president affirmed that the relations of measures suggested by the EU's executive between Estonia and Austria are very good and that Commission to alleviate the border crossing Estonia considers continued warm relations and problems. cooperation and mutual high-level visits important. Aav said the volume of trade on the EU's "Your term in office witnessed the external border is increasing steadily which achievement of Estonia's priority foreign policy goals necessitates ever closer cooperation among customs such as accession to the European Union and NATO. officials to support the functioning of legal trade and We are very grateful to Austria for its staunch at the same time combat crime. "Considerable support for our aspirations," the president said. success in facilitating trade and border crossing can Forst-Battaglia said it was a pleasure to pay be achieved only by concerted efforts of the EU and a farewell visit to the president who held the foreign neighbouring countries," he added. portfolio at the time he first arrived in this country. A declaration on cross border cooperation "Estonia is a model to Europe which needs drafted by customs chiefs and action plans mapped more solidarity and unity," he said. out by work groups were adopted. Forst-Battaglia served as Austria's The non-EU countries participating in the ambassador to Estonia in 2001-06. conference were Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Moldova, Russia and Ukraine. Estonia Hands Note to Russia over The forum on cooperation on the EU's Protests Involving Burning of Flags eastern border took place in the framework of the bloc's Customs 2007 program. An analogous event addressing cooperation on the southern border was Dec 12 - The Estonian Foreign Ministry held in Naples, Italy in November. delivered a note to Russia over a protest in front of the Estonian embassy in Moscow Economist Slams Amnesty Int'l Report on during which flags were set ablaze. "We issued a note in connection with the Estonia incident at the embassy in Moscow, since the picket Dec 15 - The Economis tmagazine has criticized at the embassy went beyond the generally accepted a recent Amnesty International report, limits," a spokesperson for the Estonian Foreign describing it as unfair and unbalanced. Ministry said. Last week, Amnesty International presented She added that the Foreign Ministry did not a report on linguistic minorities in Estonia entitled consider it necessary to protest against pickets “Discrimination must end”, which stated non- which were conducted observing the laws of the Estonian-speaking people had no guarantees of respective country and international law. education in Estonia and could not equally compete Around 40 people took part in the December on the labour market. 11 action at the Estonian embassy but the embassy Estonian authorities rejected the accusations carried on working. presented in the report, noting that the report is largely based on outdated or biased information. Russian Flag Burners Ready to Apologize The Economist largely corroborated these to Estonia views, saying the report echoes Kremlin propaganda in a way that Estonians find sinister and offensive. Dec 14 - The leader of Russia's Young Russia "But most puzzling of all, it is a bizarre use movement has admitted that setting Estonian of Amnesty's limited resources. Just a short drive flags on fire during a protest in front of the from Estonia, in Belarus and in Russia, there are real Estonian embassy in Moscow was going too far human rights abuses, including two classic Amnesty and does not rule out an apology. themes: misuse of psychiatry against dissidents, "Of course it was overdoing things to some and multiple prisoners of conscience. Yet the extent. Initially there was naturally no plan to coverage of these issues on the Amnesty website is commit such an act," Maxim Mishchenko said. feeble, dated, or non-existent." Mishchenko said the movement was thinking The Economist finds Amnesty seems to have about extending an apology and will make a decision become just another left-wing pressure group. on the matter soon. He voiced the opinion that the It points out that that Amnesty International flags were burnt as symbols rather than national used to be an impartial and apolitical outfit focused flags of Estonia. on the issue of political prisoners. It recalls Amnesty's campaign on behalf of Soviet prisoners of EU, Neighbouring Countries' Customs conscience, such as Jüri Kukk, an Estonian Chiefs Addressing Border Congestion chemistry professor, in the 1980s. The Economist says that during the Soviet Dec 14 - Customs chiefs from European Union occupation Moscow promoted mass integration into member states and candidate countries as well Estonia and the collapse of the evil empire left as eight eastern neighbouring countries Estonia with hundreds of thousands of resentful, discussed cross border cooperation, including stranded ex-colonists, citizens of a country that no solutions to eliminate long waiting lines on longer existed. Russian borders, at a conference in Finland. "Some countries might have deported them. The main purpose of the conference was to That was the remedy adopted in much of eastern evaluate progress achieved and suggest new Europe after the second world war. Germans and courses of cooperation, security and trade. Hungarians -- regardless of their citizenship or Long waiting lines on Russian borders and finding politics -- were sent "home" in conditions of great ways to deal with them were high on the agenda. brutality. The director general of the customs "Instead, Estonia, like Latvia next door, authority, Enriko Aav, said participants in the

6 decided to give these uninvited guests a free choice. Members of the Estonian defence forces They could go back to Russia. They could stay but have been in Iraq since June 2003. About twenty adopt Russian citizenship. They could take local Estonian soldiers have been injured and two, Jr. Sgt. citizenship (assuming they were prepared to learn Andres Nuiamäe and Sgt. Maj. Arre Illenzeer, were the language). Or they could stay on as non- killed during the mission. citizens, able to work but not to vote," the leader There are currently 28 countries making up went on. the multinational security forces in Iraq. The basis "Put like that, it may sound fair. But initially for the presence of the forces in Iraq is a respective it prompted howls of protest against ‘discrimination’, request of the Iraqi government; the activity of the not only from Russia but from Western human-rights forces is also regulated by a resolution of the UN bodies. Security Council of November 28 as well as relevant "The Estonians didn't flinch. A "zero option" - earlier resolutions. - giving citizenship to all comers -- would be a disaster, they argued, ending any chance of Estonian Units in Afghanistan Providing restoring the Estonian language in public life, and of Security for Kandahar Operation recreating a strong, confident national identity. "They were right. More than 100,000 of the Dec 18 - The Estonian infantry company Soviet-era migrants have learnt Estonian and gained ESTCOY-3 and the ordnance disposal team citizenship. In 1992, 32% of the population had no EOD-10 are providing security for a major citizenship. Now the figure is 10%. NATO operation in Kandahar province in The Economist recalled how a correspondent southern Afghanistan. tried to buy postage stamps in Tallinn using halting "The operation has been going as planned Estonian and was told by the clerk, in Russian, and peacefully for our units," said Lt. Col. Vahur "govorite po chelovecheski" (speak a human Karus, head of the Estonian contingent in language). Afghanistan. "That was real discrimination. Estonians Estonian units have taken part in operations were unable to use their own language in their in Kandahar province before. capital city. Now that's changed too. "It is the duty of the Estonians to patrol in "Reasonable people can disagree about the the area of operations, obstructing movement of details of the language law, about the right level of opponents to the government forces and impeding subsidies for language courses, and about the rules activity directed against NATO and Afghanistan for gaining citizenship. Nowhere's perfect. But government forces," Karus said. Estonia's system is visibly working. It is In addition to Dutch, Canadian, British, extraordinarily hard to term it a burning issue for an Danish and Estonian troops also the Afghanistan international human-rights organization," The army and the police are taking part in the operation Economist said. against Taliban. Commander of the 81-strong ESTCOY-3 is Maj. Leo Kaige. The 15-strong ordinance disposal DEFENCE NEWS team is under the command of Capt. Üllar Luhaste. Parliament Extends Iraq Mission for One There are currently 131 Estonians serving in More Year the NATO forces in Afghanistan. Estonian defence Dec 19 - The Estonian parliament decided to forces have taken part in the operation in extend the Estonian defence forces mission in Afghanistan since 2003. Iraq by another year. The decision was passed with 70 votes in DOMESTIC NEWS favour. There were three votes against: two from Parliament Passes Next Year's State Social Democrat MPs and one from a Centre Party Budget MP. The decision extends the post-conflict Dec 13 - With 57 votes in favour, 16 against security maintenance mission in Kuwait, Qatar, and no abstentions, the Estonian parliament Bahrain and Iraq starting January 1, when the passed the state budget for 2007. current mandate expires. The sum total of revenue in the next year's Up to 40 members of the defence forces may budget is 75.91 billion kroons (EUR 4.85bn) and of be deployed on the mission at any one time. expenses 74.78 billion kroons. Compared with the Defence Minister Jürgen Ligi said during the state budget for 2005, the revenue target in next first reading of the bill in parliament that the general year's budget is 23 percent higher and that of state of security in Iraq had not stabilized enough expenses 21 percent higher. yet to withdraw the coalition forces in the short Tax revenue accounts for 60 billion kroons term. and non-tax revenue 15.7 billion kroons of the Ligi said it was Estonia's duty to comply with budget. There is 8.5 billion kroons of EU money in the request of the lawful Iraqi government to extend the budget. the presence of multinational armed forces. "Let us Next year the state is planning to pay back also bear in mind that participation in the mission in foreign debts to the tune of 1.8 billion kroons. Iraq is directly connected with Estonia's security Prior to the last reading of the bill a 2.35- interests," he said. billion-kroon financing deal for the repurchase of But Ligi added that although the mission in Eesti Raudtee (Estonian Railway) from its private Iraq was being extended by one year it would owner was added to the state budget bill. The always be possible to withdraw from Iraq before the purchase should take place in January. year was out. He said that the decision could be The budget of the Social Affairs Ministry will made by Estonia, but also by the Iraqi government increase by four billion kroons next year. The or the United Nations. budgets of the ministries for agriculture, education,

7 defence and the interior will grow by about one the European Union it is trusted by an average of 48 billion kroons each. percent. The trust is the highest in Slovenia (73 Representatives of the coalition parties percent) and the lowest in Great Britain in (25 expressed support in the budget before the voting, percent). while leaders of the opposition Taavi Veskimägi, Eiki Activity of the European Parliament is also Nestor and Mart Laar criticized the budget. trusted by 59 percent of Estonian residents. Of Veskimägi and Laar separately mentioned residents of the European Union 52 percent trust the repurchase of the railway. pan-European legislative body. Trust in the European Parliament is the highest in Slovenia (73 Estonian Government Approves percent) and the lowest in Great Britain (25 Environmental Strategy up to 2030 percent). Of Estonian residents 49 percent find that Dec 14 - The Estonian government approved an developments in the European Union are going in environmental strategy paper covering the the right direction, but only 33 percent of residents period until 2030 which identifies long-term of EU25 think so. The most positive opinion of the development trends to maintain the whole developments is among residents of Lithuania (57 living environment in a good state. percent) and the most negative in France (22 The objectives set out in the strategy are to percent). considerably reduce by 2030 the hazardousness of In Estonia the Eurobarometer poll, carried waste, and achieve a healthy state of surface and out in September and October, was based on ground water as well as economical utilization and interviews with 1,000 people. The poll took place environment-friendly extraction of natural resources. simultaneously in all the 25 members of the As to forest use, the strategy calls for European Union. maintaining a balance between economic, social, ecological and cultural needs, and securing healthy Two New Surveillance Systems to Be Set condition and diversity of the wild animal and fish stocks. Up at Estonia's Eastern Border The paper further calls for diversification of Dec 15 - The Estonian Interior Ministry and the the generation of electric power, gradual elimination Border Guard Board signed two new contracts of non natural ozone layer-depleting substances in for the purchase of new radar and camera both the industry and households, and development systems for the eastern border. of an effective, environment-friendly and The total of the two contracts is nearly 40 comfortable public transport system and safe light- million kroons (EUR 2.5 mln). The money for the traffic facilities. purpose will come from Schengen Facility means. As a 25-year perspective requires a high According to the contract signed with level of generalization, the state will arrange the Cybernetica, a new radar tower will be built at a implementation of the strategy by means of shorter point where the channel between Lakes Peipsi and action plans. The next one covers the years 2007- Pskov becomes Lake Pskov. Radar equipment made 13. by TERMA of Denmark, and camera systems capable of identifying persons crossing the border on foot or Estonians' Support for EU Membership on small water craft, over the distance of at least 14 Higher than EU Average kilometres will be installed in the tower. The more than 30-million-kroon surveillance Dec 18 - Estonian residents' opinion of system must be able to work effectively both in membership in the European Union is higher darkness and in rain and the date of its completion than the average among the member has been set for the end of next August. countries, preliminary results of a recent The ministry and the Border Guard Board Eurobarometer poll revealed. signed a contract with Viking on the installation of According to the poll, 56 percent of Estonian different surveillance cameras in Narva and on the residents found that their country's membership in already existing radars on Piirissaar Island and in the European Union was good, while the EU average Smolnitsa. was 53 percent. By the remote-controlled camera systems it The strongest support for membership in the will be possible to detect a man or a dog from the EU was registered in Ireland (78 percent), distance of nearly 20 kilometres; the resolution of Luxembourg (74 percent) and the Netherlands (72 cameras to be installed in Narva is lower. percent). The figure was lowest in Great Britain (34 The contract is worth nearly nine million percent), Austria (36 percent) and Hungary (39 kroons, with the date of completion set for next percent). September. Of Estonian residents 72 percent agreed with At the beginning of this December a contract the statement that membership in the European was signed with Cybernetica for the construction on Union had been beneficial to Estonia. In the EU on the eastern bank of the Narva a similar radar system average, 54 percent felt the same about their with an operating radius of three kilometres. Falck respective country. Estonia will also build a 3.9 kilometre stretch of The opinion of the European Union among electronically guarded section of the border with residents of Estonia was almost equal to the EU electronic detection and surveillance equipment. It is average, with 48 percent of residents of Estonia a pilot project for a fully electronic section of the having a good opinion of the EU against an average border. of 46 percent in the EU. People’s opinion of the EU To increase the effectiveness of guarding the was the highest in Ireland (73 percent) and the external border of the Schengen visa space different lowest in Great Britain (28 percent). surveillance and detection systems and modern Activity of the European Commission is water craft have been acquired for Estonia's eastern trusted by 59 percent of Estonian residents, while in

8 border at the expense of the Schengen Facility high schools. program. The government did not back the draft law either, noting that religious studies are a non- Estonian Ministry to Set Up DNA, denominational subject which can be taught at all Fingerprint Registers school levels also under the effective law. As regards the obligation to teach the Dec 14 - The Estonian government approved subject if 15 students want to attend the class, the Interior Ministry's proposal to establish schools are not forbidden to provide instruction to a DNA and fingerprint registers to facilitate the smaller number of students, the government said. identification of persons. The ministers found at the same time that it The national databases are to be set up with would not be right to place on all schools the the purpose of registering DNA analyses and obligation to provide instruction to smaller groups of fingerprints collected under law, identifying persons students but that schools should inform parents and unidentified bodies, tracking down missing about the possibility of studying the subject. persons, and linking crime scenes to persons. According to Interior Minister Kalle Laanet, Estonian President Appeals to Scientists the key purpose of both registers is to foster speedier and more exact solving of crimes. to Find Answers to Problems "At present we have an internal database of Dec 19 - At the opening of the Estonian the police. The establishment of national databases president's think thank President Toomas will combine the information of investigation Hendrik Ilves appealed to scientists and agencies to make finding links between crimes and opinion leaders to look for answers to suspects more efficient," the minister said. questions the government and the parliament The electronic databases will include had no time or political will to deal with. personalized data and impersonalized fingerprints "We should raise a public and substantial collected from crime scenes and DNA tests. debate on issues that will inevitably start to "Data of law-abiding persons do not as a rule influence the welfare of the Estonian society and end up in the register. Therefore, only people who suggest options of solutions to politicians ourselves," have erred against the law need fear the new the president said in expressing the aim of the think system as it allows to clear up their repeated crimes tank for the next five years. faster," Laanet said. Among the possible themes of discussion the The data to be entered in the registers will president mentioned the place of Estonia in the be provided by and made accessible to the Border European Union, energy security, interpretation of Guard Board, Citizenship and Migration Board, the influence of past events in Estonia, prisons, courts, prosecutors' offices and other bodies strengthening of the civic society and the conducting out-of-court proceedings. In addition, relationship of the non-Estonians living in the the information can be forwarded to other countries country with the Estonian state and society. if necessary to fulfil international commitments. "Unclarity and manipulation with myths in The data included in the registers will not be these issues endangers the security of Estonia in the public. A record in the form of log files will be kept long term and poisons the society from within," of all instances of their use. The Data Protection President Ilves added. Inspectorate will exercise supervision of the The president's think tank, which earlier lawfulness of register-keeping including data convened under the name of the president's security. academic council, will in addition to regular meetings start organizing public conferences. Information Estonian Lawmakers Reject Bill on Study about the work of the think tank will be published on of Religions the president's web site as well as in publications. "I am very glad that despite the intensive Dec 14 - The Estonian parliament dropped at work schedule at the end of the year we could the Centre Party's proposal from the agenda a launch the work of the think tank within 2006," Ilves bill to make study of religions mandatory in said. high schools. He said that generation of public discussions The Centrists' proposal to reject the bill was and suggestion of various solutions was one of the backed by 21 deputies from parliamentary groups of main duties for the Estonian president. the ruling coalition parties and voted down by 12 "I believe that the synergy as a result of the MPs representing all the factions, with one lawmaker authority, creative impulses and experience is the abstaining. key of original solutions," the president added. The proposed legislation viewed the study of Members of the think tank set up by religions as a non-demoninational subject that would President Toomas Hendrik Ilves are Jüri Allik, Jüri give students knowledge of world religions and their Engelbrecht, Mati Karelson, Alar Karis, Kalle influence on human culture. Kasemaa, Rainer Kattel, Raul Kiivet, Toomas Kukk, The bill suggested that study of religions Marju Lauristin, Kadri Liik, Lauri Mälksoo, Ilmar should be voluntary in basic school but that a school Raag, Martti Raidal, Rein Raud, Jaan Ross, Märten should be obliged to provide instruction where at Ross, Mart Saarma, Margit Sutrop, Jaan Tallinn, least five pupils wish to attend the class. A school is Marek Tamm, Erkki-Sven Tüür, Richard Villems and currently obliged to provide instruction if at least 15 Tõnu Õnnepalu. students wish to study the subject. Organizer of the think tank's work is Toomas Study of religions would according to the bill Kiho, editor in chief of the journal Akadeemia. be a mandatory part of the national curriculum for

9 ECONOMIC NEWS provided for the European domestic market where member countries are also entitled to establish a higher level. For Estonian credit institutions it is Currency rates in kroons currently 10 percent. (Bank of Estonia) The act will enter into force as of January 1, 2007. Estonia Ranks 12th Measured By Lisbon Criteria Wages in Estonia Rise Faster in Q3 than Dec 14 - Estonia ranks 12th as measured by the Productivity Lisbon criteria among countries of the Dec 15 - In the third quarter of this year, European Union (EU). Estonia continued to see a trend of labour According to a list drawn up by the World costs increasing at a faster rate than Economic Forum, Estonia is the strongest performer productivity. among the 2004 entrants. Estonia's information Data released by the Statistical office society is assessed as being among the top five in showed that productivity, or sales per employed Europe, with a government that is among the person, increased 16 percent year-on-year. Labour world's best in terms of providing online government costs per employed person meanwhile increased 21 services, and a high Internet penetration, the survey percent. reveals. Overall, productivity in the third quarter of Estonia's enterprise environment ranks sixth the year was 326,000 kroons per employed person overall, known as a comparatively easy place to based on net sales, up from 282,000 kroons in the start a business, with a low regulatory burden. same period a year ago. Of the countries that acceded to the EU Productivity increased in all areas of simultaneously with Estonia, Slovenia and Hungary, business. ranking 16th and 17th respectively, have improved In the third quarter there were about 38,000 their comparative performance since 2004. This enterprises in Estonia, which employed about implies that a number of these recent member 436,000 persons. The total number of hours worked countries are already closer to meeting the Lisbon was 184.1 million hours. goals than many of the original EU15 members, the Total net sales in the three-month period compilers of the overview found. came to 142.1 billion kroons (EUR 9.08 mln), which Measured by the Lisbon criteria, Denmark is is 24.3 billion kroons more than in the third quarter the most competitive economy in the EU, followed of 2005. by Finland and Sweden. Lithuania ranks 20th and Latvia 22nd in the list. Minimum Monthly Wage to Rise to EUR Of candidate countries Croatia, Turkey and Romania were the top performers. 230 in 2007 The European Commission also released a Dec 19 - The board of the Confederation of report on the implementation of the EU member Estonian Trade Unions approved the terms and countries' economic growth and employment conditions of a minimum pay agreement to be strategy. concluded with the employers' association. The Commission's opinion of the The agreement stipulates that the implementation of Estonia's economic growth and government will set the national minimum pay from employment plan of action is so positive that it did Jan. 1 at 3,600 kroons (EUR 230) a month and the not regard it necessary to give any official minimum hourly pay, at 21.5 kroons. recommendations to adjust policies and improve The unions regard a monthly minimum of their implementation. 3,600 kroons as a noteworthy outcome because never before has minimum pay risen by 600 kroons Parliament Passes Amendments to Credit at once. Institutions Act The biggest rise in previous years was by 320 kroons. Dec 14 - The Estonian parliament has passed "When we demanded 4,050 kroons in the fall amendments to the Credit Institutions and the we kept in mind the deal would be struck at a lower Financial Supervisory Authority Acts. level," said the chairman of the union organization, The main aim of the amendments is to Harri Taliga. "Negotiations always mean harmonize directives of the European Parliament and compromises." the Council pertaining to capital requirements, by The confederation initially aimed at a which a new capital adequacy concept is established minimum pay of 4,050 kroons for the next year for credit institutions, the parliament said. whereas employers offered 3,500 kroons. Capital adequacy is the setting of minimum Minimum monthly pay is 3,000 kroons in this capital requirements to ensure credit institutions are year. sufficiently solvent. Assets and off-balance-sheet The nationwide minimum pay was for the records are weighted in accordance with their risk first time established in Estonia in 1992 by a three- levels. way agreement between unions, employers and the In addition, to prevent distortion of government. In the last five years minimum pay competition and to strengthen the banking system, agreements have been concluded between the a respective comprehensive operation risk minimum central organizations of unions and employers. capital requirement of eight percent has been Based on their agreement, the government sets the minimum pay.

10 Freight Carriage on Estonian Railways up Port of Tallinn: Freight Handling Should 6 Pct in November Increase by 10 Pct Next Year Dec 13 - A total of 3.77 million tons of goods Dec 13 - Freight handling at the Estonian state- was carried on Eesti Raudtee (Estonian owned Tallinna Sadama (Port of Tallinn) Railway) in November, 6 percent more than in should grow by about 10% next year, the same month last year. according to the endorsed budget. "It was a relatively busy month, but we did This year the amount of goods handled at quite well despite track work," Eesti Raudtee the port will amount to about 40 million tons. marketing director Rene Varek said. "We also Neinar Seli, chairman of the supervisory managed to keep up the freight volumes of Estonian board of Tallinna Sadam, said that the growth Railway as a freight operator, since compared with forecast of freight handling was based on amounts last November we now have one more freight projected by operators. operator." Seli said that next year the number of The carriage of oil and oil products declined passengers should be slightly higher than this year. as compared with last November, from 2.21 million He added that the port fees charged by to 2.03 million tons. operators for passenger services and the freight The biggest positive development over passing through the port would grow by 3.8 percent several years was in grain transit, where the freight on the average next year. volume amounted to more than 250,000 tons in The sum total of the port's incomes should November. next year be about 1.3 billion kroons (EUR 85 mln), Besides, Varek said that for the fifth month the operating profit about 600 million and the net running, container transport increased on Estonian profit about 400 million kroons. Railway in November, with 1,009 containers, the Seli said the different parties connected with third best all-time result, carried during the month. the port should continue their discussion over the Amounts of coal went up by half in dividend policy of Tallinna Sadam. On the basis of November, totalling 670,000 tons. Both fertilizer and the draft state budget for next year the state is oil shale transport declined, respectively to 210,000 planning to take from the port a dividend of 300 and 160,000 tons. million kroons, plus 85 million kroons in income tax In all 40.1 million tons of goods was on the dividend. transported on Estonian Railway in January- Seli said that in a certain sense the dividend November, practically equal with the same period could be regarded as taking a state loan because in last year. Of the total freight volume oil and oil order to make new investments the port must take a products accounted for 59 percent, but transport loan while paying the dividend. Investment at the figures for these products has fallen by 10.9 percent expense of the port's own funds would be cheaper over the year. and have a shorter payback period, Seli said.

Port of Tallinn Planning to Invest EUR 99 Estonian Computer Firm Ordi Posts Sales Mln Next Year of EUR 23.7 Mln for 11 Months Dec 13 – The supervisory board of the Estonian Dec 18 - January-November sales of Ordi, an state-owned Tallinna Sadam (Port of Tallinn) Estonian computer assembly and sales endorsed the company's budget for next year, company, reached 371 million kroons (EUR according to which planned investments will 23.71 mln). amount to 1.55 billion kroons (EUR 99 mln). Laptops accounted for 30 percent of the Tallinna Sadam board chairman Neinar Seli sales revenue, the company said. said that the investments planned for next year Ordi expects continued growth of laptop would be the biggest in the history of the port. sales in the new year, commercial director Jaan Pikk Nearly one billion kroons of investments has said. been planned for new development projects of The firm hopes to sell 4,000 computers in harbours belonging to Tallinna Sadam and the December, he added. remaining half a billion kroons to improve the Ordi's 11-month sales surpassed those of existing infrastructure. Of the total investment 200 the other leading computer manufacturer and seller, million is expected as a European Union subsidy. ML Arvutid (ML Computers), by almost 94 million Muuga, the biggest harbour of Tallinna kroons. Sadam, will receive about 900 million kroons of investments, of which 600 million will be spent on Estonia's Norby Buys Latvian Telecom an eastern extension of the harbour. The rest of the Company Telecentrs money will help develop an industrial park to be erected at the Muuga harbour. Dec 15 - Norby Telecom, the Latvian subsidiary In Vanasadam (Old Harbour), which mainly of the Estonian telecommunications company serves passengers and ro-ro goods, the plans are to of the same name, at the end of November build Wharf 13 to serve passenger ships, to acquired 100 percent of the shares of the refurbish Wharf One and to make improvements to Latvian company Telecentrs SIA. Wharves 2 and 3 for better servicing of passengers. The board chairman of Norby Telecom, Oleg In all the port is planning to invest 330 million Shvaikovsky, said that in some market segments kroons into Vanasadam. such as data communications services for corporate The rapidly developing Paldiski South customers Telecentrs ranked as the second largest Harbour will receive about 300 million kroons of service provider in Latvia. investments. The port will get a new wharf – Wharf "That is part of our company's pan-Baltic 8 – and Wharf 6 will be extended. development strategy. Together with our Lithuanian subsidiary Norby Telecom UAB, Norby is by now

11 present in all the Baltic states to offer its services to earlier. Individuals' deposits meanwhile rose from both local companies as well as to companies 43.25 billion kroons to 43.92 billion kroons. needing a single pan-Baltic data and voice Commercial banks earned in January- communications services," Shvaikovsky said. November a net profit of 3.32 billion kroons. Norby Telecom emerged as a result of a merger of several telecommunications companies Swedish, Baltic Commercial Banks Sign and has been one of the fastest developing Crisis Management Agreement companies in the Estonian telecoms sector of late. Norby Eesti recently bought a data communications Dec 18 - Leaders of the Estonian, Latvian, network for corporate customers from Microlink, a Lithuanian and Swedish central banks signed company of the Eesti Telekom group. in Stockholm an agreement on cooperation to manage financial crises. Arco Vara's Latvian Subsidiary Concludes The accord improves the parties' readiness for close cooperation to deal with financial crises 600 Deals in 11 Months concerning cross-border banking groups, the Bank Dec 18 - Arco Real Estate SIA, the Latvian of Estonia said. subsidiary of the Estonian real estate group The institutions responsible for financial Arco Vara, concluded more than 600 deals in stability in Estonia -- the central bank, Financial the first 11 months of this year. Supervision Authority and Finance Ministry -- signed Valuers of Arco Real Estate made almost a similar domestic agreement on Dec. 5. 3,600 evaluations and brokers mediated the sale Both documents emphasize that the primary and purchase of nearly 600 dwellings in the 11 responsibility for resolving a crisis lies on the owners months, Arco reported. and management of the troubled bank or branch. The company will employ more than 100 Central banks will intervene only where the private people by the end of the year compared to 54 at the solutions do not work or prove to be insufficient. same time last year. The agreement stipulates that the central The Latvian subsidiary opened two new bank which first identifies a potential crisis should offices during the year and now has seven offices contact the others. Besides information exchanges in throughout the country. Several more offices are to the event of imminent financial crises, the open early next year, head of Arco Vara's service agreement deals also with regular cooperation in group Ivar Siimar said. ordinary circumstances. The central banks plan for "With this step Latvia seeks to bring the instance to conduct regional crisis drills. number of offices by 2008 to the same level as that "As Swedish banks account for more than of the Arco Vara real estate office operating in 80 percent of the banking sector in Estonia, it goes Estonia," Siimar added. The firm's target is to raise without saying that any crisis can be solved only in the number of offices to 12 by 2008. mutual cooperation," Bank of Estonia President According to Siimar, Arco Real Estate has Andres Lipstok said. become a leading seller of development projects in Latvia. The firm's sales portfolio includes most of the Tallink Carries More than Half a Million large development projects in the capital Riga. Passengers in November Arco Vara's audited consolidated sales in 2005 reached 476 million kroons (EUR 30.42 mln) Dec 13 - The Estonian Tallink Grupp shipping and the group ended the year with a net profit of line carried 510,254 passengers this 116 million kroons. November, 120 percent more than in November 2005. Estonian Banks' Assets Increase in The main source of growth was addition of Silja Line's operations since this summer. November The number of Tallink's freight carriage units Dec 15 - Assets of Estonian commercial banks grew by 144 percent and that of cars by 70 percent grew in November by 11 billion kroons, in November. On the comparable Estonian-Finnish reaching 231.85 billion kroons (EUR 14.81 b) and Estonian-Swedish passenger routes the number at the end of the month, the central bank said. of passengers grew by respectively 5.9 and 16.9 The banks' assets have increased by 52.4 percent, the company said. billion kroons over the past 12 months. On the Estonian-Finnish route the company Of banks' consolidated assets at the end of carried 202,431 passengers during the month, the last month, claims to clients made up 171.98 billion, number of passengers on the Estonian-Finnish route claims to credit institutions 20.96 billion and claims being 52,305, on the Finnish-Swedish route to the central bank 15.54 billion kroons. 235,486, on the Latvian-Swedish route 13,269 and Commercial banks' loans to the government on the Finnish-German route 6,763. stood at 2.64 billion kroons, loans to financing In Q1 of the financial year from September institutions at 9.84 billion kroons, loans to to November Tallink's total number of passengers companies at 80.58 billion kroons and loans to was 1,616,869. individuals at 76.25 billion kroons. Loans to private individuals grew by 2.87 Flynordic to Resume Flights to Tallinn as billion kroons and loans to businesses by 3.06 billion of May kroons during November. Banks' liabilities to credit institutions totalled Dec 15 - The low-cost airline FlyNordic will 60.14 billion kroons and to customers 120.05 billion resume twice-weekly flights between kroons at the end of last month. Stockholm and Tallinn as May 4. Companies' deposits increased to 55.84 The company said that the flights between billion kroons from 54.48 billion kroons a month Tallinn and Stockholm would take place on Fridays and Sundays until September 30.

12 Between Midsummer Day and the middle of August the flights will be on Fridays and Mondays. FlyNordic managing director Krister Aarnio said that Tallinn had earlier been very popular as a destination and as Tallinn-bound tourism was growing, investment into the route had not been a difficult decision for the company. The price of a ticket on the route between Tallinn and Stockholm will start at 322 Swedish kronor or about 555 Estonian kroons (EUR 35.50). FlyNordic, a subsidiary of Finnair, first started flying between Tallinn and Stockholm last spring.

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