Estonian Review E E S T I R I N G V A A D E VOLUME 18 NO 14 MAR 26- APR 1, 2008

FOREIGN NEWS FOREIGN NEWS Approves of Creating New Partnership and Co-operation Agreement between the European Union and Russia Mar 29 - Estonian Foreign Minister Urmas Paet participated in the informal meeting of European Union foreign ministers held in Slovenia from 28- 29 March. On Friday, the topic of discussion was further development of relations between the European Union and Russia. In his turn on the floor, the foreign minister emphasised the necessity of creating a new Partnership and Co-operation Agreement between the European Union and Russia, and expressed hope that the EU will soon approve a mandate for negotiations on a new Foreign Minister Urmas Paet and Georgian agreement with Russia. “A new Partnership and Co- Prime Minister Vladimer Gurgenidze in operation Agreement would create better conditions for Estonian Foreign Ministry, 30 March. the European Union and Russia to co-operate in their shared neighbourhood,” said Paet. “We would like to see Foreign Minister Paet Met with Russia as a constructive partner in resolving the security Georgian Prime Minister issues in the region,” the foreign minister stated, noting that Estonia would be glad to consider a new president Mar 30 - Estonian Foreign Minister Urmas assuming office in Russia as an opportunity to repair and Paet met with Georgian Prime Minister improve relations between the European Union and Vladimer Gurgenidze, in on a visit. Russia. The ministers spoke about development co- Paet reminded that even though both the European operation, Georgia’s opportunities regarding Union and Russia have vital interests when it comes to NATO and the European Union, and the frozen co-operation, the EU should not forget its principal conflicts in Abkhazia and South Ossetia. values. “The new agreement should be comprehensive Gurgenidze and Paet felt that in future and legally binding. We would definitely need to agree on development co-operation, more attention energy-related co-operation that would be based on the should be given to small businesses and ideas of a market economy, transparency, non- increasing business-related knowledge. discrimination and being mutually beneficial,” said the “Improving the quality of leadership and Estonian foreign minister. financial skills in small businesses would help to The current European Union-Russia Partnership and strengthen Georgia’s economy as a whole,” Co-operation Agreement came into force in 1997 for 10 Paet noted. Georgia is one of Estonia’s primary years. The parties agreed that until a new agreement development co-operation partners. Priority comes into force, the existing agreement will be areas of co-operation are supporting the automatically extended each year on 1 December by one educational sector, developing democracy as year. Therefore the agreement is still valid until 1 well as good administrative practices and, and December this year. supporting economic development. During their meeting, the foreign ministers also Gurgenidze and Paet also talked about discussed the situation in Tibet and called for a dialogue Georgia’s NATO perspective. The Estonian to be initiated between the Dalai Lama and the Chinese foreign minister confirmed that Estonia authorities. According to Estonian Foreign Minister Urmas supports the idea of giving a NATO Membership Paet, who participated in the meeting, a lasting solution Action Plan to Georgia during the Buchrest to the situation in Tibet can only be achieved by peaceful summit. “In any case, Georgia must be given a measures that are in accordance with international clear signal during the Bucharest summit, which democratic principles. “A dialogue between Chinese will encourage the nation to continue its NATO- related endeavours,” the foreign minister authorities and the Dalai Lama must guarantee the cultural and religious rights of the Tibetan people. It added. must also address vital issues like the protection of the language, culture, religion and traditions of Tibet,” he added.

LENNART MERI CONFERENCE – PHOTO GALLERY

Olli Rehn, Member of the European Commission, Estonian Foreign Minister Urmas Paet and the Chairman of Baltic Development Forum Ufe Ellemann-Jensen.

György Schöpflin, Member of the European Parliament and President .

Minister of Defence Jaak Aaviksoo and Estonian Ambassador to NATO Jüri Luik.

Georgian Prime Minister Vladimer Gurgenidze and Estonian Charge d'affair in Tbilisi Harry Lahthein.

Director of Estonian Foreign policy Institute Prof. Andres Kasekamp and Marko Mihkelson, Member of Estonian Parliament.

Estonian Foreign Ministry’s Undersecretary in European Affairs Kaja Tael and German Ambassador Julius Bobinger.

Ministry for practical experience during France’s EU FOREIGN NEWS presidency. Matti Maasikas and Kaja Tael also met with EU Estonia is First to Sign Wreck Removal adviser to the French Prime Minister Gilles Briatta Convention and the director of the politics and security policy Mar 28 - Estonian Ambassador to the United department of the French Foreign Ministry Gérard Kingdom Dr Margus Laidre signed the Nairobi Araud. International Convention on the Removal of Gilles Briatta gave an overview of France’s Wrecks on behalf of Estonia at the priorities during their upcoming EU presidency. They International Maritime Organisation primarily plan to focus on climate change and Headquarters in London. Estonia is the first energy policy, but also security and immigration country to sign the Convention. policy, as well as implementing the Lisbon Treaty. The Nairobi Wreck Removal Convention was adopted in May 2007 and will provide the legal basis Foreign Minister Highlights Macedonia’s for States to remove, or have removed, shipwrecks Favourable Tax Policy that may have the potential to affect adversely the Apr 1 - Foreign Minister Urmas Paet met with safety of lives, goods and property at sea, as well as the Macedonian Minister without Portfolio in the marine environment. charge of foreign investments Gligor According to Ambassador Laidre the Convention, Tashkovich, in Estonia on a visit. once in force, can fill a gap in the existing The ministers discussed economic co-operation international legal framework by providing set of between the two nations, as well as Macedonia’s international rules aimed at ensuring the effective economic reforms and aspirations to join NATO and removal of wrecks. “Estonia’s will to join the the European Union. The situation in the Western Convention proves that Estonia is a credible partner Balkans was also discussed. contributing to the IMO goals of safe navigation and According to Foreign Minister Paet, relations with marine environmental protection,” he said. Macedonia are very active, which is demonstrated The Convention is open for signature until 18 by the large number of reciprocal visits that take November 2008 and, thereafter, will be open for place. Last year alone, 20 visits on various levels ratification, accession or acceptance. In Estonia it were made between Estonia and Macedonia. In has to be ratified by the parliament. The Convention order to increase interest from Nordic and Baltic will enter into force twelve months following the businessmen towards the Western Balkan region, a date on which ten States have either signed it Baltic, Balkan and Nordic business forum will be held without reservation as to ratification, acceptance or in Tallinn at the end of May. “Hopefully an honorary approval or have deposited instruments of consulate will be opened in Macedonia soon, which ratification, acceptance, approval or accession with would give additional momentum to the the Secretary General of IMO. development of relations between the two nations,”

Paet stated. Maasikas and Tael Discussed Priorities of In talking about the economic environment, the France’s EU Presidency in Paris Estonian foreign minister highlighted Macedonia’s Mar 27 - Secretary General of the Estonian low flat tax. “Macedonia held Estonia as an example Foreign Ministry Matti Maasikas and when it carried out its economic reforms. Now Undersecretary for European Union Affairs Macedonia, with its 10% taxation rate, has become Kaja Tael met with Secretary General of the an example for Estonia,” Paet noted. Minister French Foreign Ministry Gérard Errera in Paris. Tashkovich confirmed that thanks to the results of Topics of discussion in the meeting were the economic reforms, the investment environment bilateral relations, next week’s NATO summit has improved and foreign investors’ interest towards in Bucharest, and matters related to energy Macedonia has increased. policy. The ministers also spoke about NATO In discussing NATO expansion, Secretary General enlargement. Foreign Minister Paet emphasised that Maasikas confirmed that Estonia supports giving Estonia supports the idea of offering an invitation to invitations for accession to Croatia, Macedonia and join to new candidate countries. Albania during the Bucharest summit, assuming that those candidate nations continue making the Prime Minister Ansip Met with his Czech necessary reforms and preparations for NATO Counterpart accession. The secretary general added that the Mar 26 - Prime Minister Andrus Ansip met with further Euro-Atlantic integration of Georgia and Czech Prime Minister Mirek Topolanek in Ukraine should be supported by giving Membership Prague, and bilateral relations, energy and the Action Plans (MAP) to both nations. Secretary impending NATO summit were discussed. General Errera asserted that France would like to According to the Czech Prime Minister, the continue strengthening its participation in NATO. relations between the two countries are excellent. Errera feels that co-operation between the European “We have no problems, we only have common Union and NATO is indispensable, particularly in positions and interests,” Prime Minister Ansip stated conflict regions. as well. In discussing bilateral relations, it was noted that As the European Energy Forum will soon take one opportunity for intensifying relations would be place in Prague, the energy topic was discussed in to conclude representation agreements for the more detail. According to the Czech Prime Minister, issuing of visas. Maasikas confirmed that Estonia is he understands the situation of Estonia and other prepared to help partners with issuing visas in Baltic States, in which the few energy connections Minsk, Pskov, and Tbilisi. He added that Estonia with other Member States of the European Union plans to send a diplomat to the French Foreign have put Estonia into a special position. Both Prime

3 Ministers shared the position that the European Estonian Foreign Minister Urmas Paet and his Union should pay more attention to supporting the Russian counterpart Sergei Lavrov signed the land energy projects of this region. and maritime border treaties on May 18, 2005. The The impending NATO summit and the positions Estonian parliament ratified them on June 20 that on the expansion of NATO were also discussed. Both year and President Arnold Ruutel promulgated the Estonia and the Czech Republic clearly support the ratification act on June 22. expansion of the Alliance and support the accession of three countries – Croatia, Albania and Macedonia, Macedonia Keen to Open Embassy in and closer cooperation of Georgia and Ukraine with Estonia NATO. The Czech Republic will hold the Presidency of Mar 26 - Macedonia is about to turn the the European Union in the first half of 2009. The temporary diplomatic mission that it opened in Prime Minister of the Czech Republic will visit Tallinn in January 2007 into a temporary one Estonia in May of this year. and intends to transform it into an embassy in the near future. Latvia to Issue Entry Visas for Estonia in The information about turning the temporary mission into a permanent one was relayed to visiting Three Countries Estonian Prime Minister Andrus Ansip by the foreign Mar 31 - Latvia will as of April 1 start issuing minister of Macedonia, Antonio Milososki, on entry visas for Estonia under a visa Tuesday. representation agreement in the capitals of So far Macedonia has been extending the activity Azerbaijan, Kazakhstan and Uzbekistan. of its diplomatic mission in Tallinn every six months. "To facilitate application for a visa, a system has The head of the mission, Nenad Kolev, said the been devised under which one Schengen country Macedonian Foreign Ministry is planning to upgrade can represent another in the issuing of visas," the mission into an embassy in the near future. director general of the Foreign Ministry's consular "I can't say if this might happen already this year department Lauri Bambus said. "Such opportunities because there has been no talk of specific were not available for Estonia prior to accession to deadlines," Kolev said, adding that the plan was to the Schengen zone." do it as soon as possible. Estonia has a representation agreement in place Macedonia views Estonia as an important partner also with Finland which covers Tunisia, the United in foreign policy, since Estonia has expressed strong Arab Emirates, the Philippines, Indonesia, Namibia, and consistent support internationally for Peru, Serbia, Syria, Thailand and Tanzania. Finland Macedonia's aspirations to become a member of the is to start soon representing Estonia also in Egypt European Union and NATO. It has also extended and Iran. substantial development aid to Macedonia. As of January 1 this year Hungary represents "We've been offered to open our embassy in Riga Estonia in the issuing of visas in Moldova. or Helsinki, which would be more sensible Germany has agreed to represent Estonia in geographically, but we don't see it as making so Angola, Bangladesh, Bolivia, Botswana, Cameroon, much sense because we have much better and Cote d'Ivoire, the Dominican Republic, Ghana, closer relations with Estonia," Kolev said. Jamaica, Madagascar, Rwanda, Sri Lanka, Sudan, The closest Macedonian embassy to Estonia now Trinidad and Tobago, and Uganda. is situated in Stockholm. Slovenia has promised to represent Estonia in Being a small country, Macedonia has limited Macedonia. resources for opening its diplomatic missions Estonia will be ready soon to represent Finland in abroad, said Kolev. The Foreign Ministry in Skopje is the issuing of visas in Minsk and the Russian town of at this point mulling opening embassies in India and Pskov. Mexico, aside from Estonia.

EU Council: Russia should Ratify Border DOMESTIC NEWS Agreement with Estonia as Quickly as Estonia to be Covered with Digital TV by Possible End of Summer Mar 27 - Russian authorities should ratify the Mar 28 - The Estonian Ministry for Economic border agreement with Estonia signed in May Affairs and Communications is planning to 2005 as rapidly as possible, the EU Council said cover the whole Estonian territory with digital in its answer to a question from Estonian MEP television signal by the end of summer. Katrin Saks. Jüri Pihel, head of the transition to digital "Although border issues essentially fall within the television commission attached to the Ministry for competence of member states, the Council attaches Economic Affairs and Communications, said that importance to the legal certainty of those borders, most of the territory of Estonia was already covered as well as to stable relations between EU member with digital television signal, but there were still states and Russia," the answer reads. small areas with no signal. The Council therefore considers that the Russian He said such areas would disappear by the end of authorities should ratify the border agreement with summer. Estonia of May 2005 as rapidly as possible. The digital television committee launched "Furthermore, the demarcation of all EU-Russia operations at the end of last year. borders should be completed according to Full transition to digital television will completed international standards as set out in the Road Map on the Island of Ruhnu on Monday. Immediately on Freedom, Security and Justice, adopted at the after the analog transmitter is switched off the air, EU-Russia Moscow summit in May 2005 as an digital television will be immediately available and instrument for the implementation of the common can be viewed with the standard arial. spaces created in May 2003," the answer says.

4 Thanks to the transition to digital television all Ants Laaneots and Estonia's naval commander Navy free domestic channels can be viewed instead of Capt. Igor Schvede. earlier one ETV channel. He also met with Mayor of Tallinn Edgar Savisaar At present five free Estonian TV channels can be and deputy speaker of the parliament Kristiina viewed in digital television. Besides, also the Ojuland. commercial-free Neljas program and MTV Estonia The Spanish frigate, Blas de Lezo, is the flagship are available for viewing, out of Estonian channels. of the NATO squadron. The 146-meter vessel was According to a regulation of the European Union built in 2004 and has a crew of 240. analog television must be switched off in Estonia by Being one of the most state-of-the-art ships of its 2012. kind, it has been designed mainly for anti-aircraft warfare. Blas de Lezo also serves as the base for the Snowstorm Caused Traffic Problems all squadron's commander and his staff. over Estonia The Portuguese frigate Vasco da Gama, built in 1989, is 115 meters long and has a crew of 180. Mar 26 - Despite efforts by road service Both ships are armed for combat with submerged companies vehicular traffic is affected all over and surface vessels and carry weapons of anti- Estonia because of the massive snowstorm aircraft warfare. that hit the country overnight. The Spanish frigate carries a Seahawk helicopter Police say that snow, vehicles with summer tires while the Portuguese vessels has two Super Lynx and bottlenecks caused by a large number of minor helicopters among its armaments. accidents made the situation difficult all over the city SNMG1, the former Standing Naval Force The North Prefecture of the police urged Atlantic, is a squadron of eight to ten destroyers and motorists having summer tires on their cars to leave frigates. Today, the ships are usually attached to the their cars home and use public transport if possible. force for up to six months on a rotating basis. In

peacetime, the force exercises primarily in the DEFENCE NEWS Eastern Atlantic. Commander of NATO Squadron Visits Aside from the ships visiting Tallinn two other frigates of the same NATO naval group -- the Estonian Ministry of Defence German frigate Rheinland-Pfalz and the US frigate Mar 28 - The Rear Admiral of the Standing Nicholas -- will visit the Lithuanian sea port NATO Maritime Group 1 (SNMG1), Juan Klaipeda. Rodriguez, today paid a courtesy visit to the Before their arrival here the squadron's ships Ministry of Defence and met the Permanent visited Amsterdam, the Russian port of Baltiisk, Undersecretary of the Ministry of Defence, Mr. Goteborg, Bergen, Kiel and Copenhagen. Lauri Almann. Mr. Almann provided Mr. Rodriguez with an CULTURE NEWS overview of the development trends of the Estonian Navy and the participation in NATO’s Response The Biggest Exhibit of Contemporary Force. For example, the mine hunter Admiral Cowan Estonian Art ever to be Seen in France should participate in NATO’s NRF-11 unit’s Kicks off Series of EV 90 Cultural Events operations during the second half of the year. Apr 2 - An exhibit of contemporary Estonian art “The visit to Tallinn by the NATO warships clearly entitled „Plaisirs de l’imagination” was opened demonstrates the meaning of NATO membership to at on 2 April in the Château de Tours. It was ordinary people and what vessels are used to organised in honour of the 90th anniversary of protect us,” Mr. Almann said. the Republic of Estonia (EV 90) by the Estonian The Spanish and Portuguese vessels Blas de Lezo Embassy in France in co-operation with KUMU and Vasco da Gama, which arrived in Tallinn and the city of Tours. yesterday, belong to the Standing NATO Maritime This exhibit is the largest collection of Group 1 (SNMG1) and are to remain in Tallinn Old contemporary Estonian works ever to be seen in City Port for their harbour phase until March 31st. France. KUMU’s curator of contemporary art Eha The NATO squadron, currently visiting Tallinn, is Komissarov chose the following artists to reflect the one of the four Standing NATO Maritime Group current state of Estonian art: Dénes Kalev Farkas, squadrons. The functions of the squadron include Johnson & Johnson, Erki Kasemets, Kiwa, Arne surveillance, embargo, search and rescue and anti- Maasik, Marge Monko, Karl Nagel and Tiiu Rebane, terrorism operations. The vessels also conduct Kristina Norman, Kaido Ole, Priit Pärn, Urmo Raus, escorting operations. The peacetime operations of Tõnis Saadoja, Silja Saarepuu and Villu Plink, Jaanus the squadron involve training and participation in Samma, Liina Siib, and Jasper Zoova. various joint exercises. The 90th anniversary of the Republic of Estonia is also being celebrated in Rennes, where the Two NATO Frigates Arrive in Estonian conductor Olari Elts is now in his second season. Capital Thanks to his initiative, the music festival “Marathon Mar 27 - The Spanish and Portuguese warships XXI” will take place, and it will focus on Blas de Lezo and Vasco da Gama with more contemporary music of Nordic countries, particularly than 400 naval personnel on board arrived in Estonia. The ensemble NYYD, under Elts’s direction, the Estonian capital Tallinn on Thursday. will give a concert in the Rennes Opera at 20.00 on The frigates that are part of the Standing NATO 10 April. On 11 April at 20.00, Elts will conduct the Maritime Group 1 (SNMG1) will remain in the Old Orchestra of Brittany (Orchestre de Bretagne), City Port until Monday. which will be presenting both Arvo Pärt’s “Orient and The Spanish commander of the squadron, Rear Occident” and Erkki-Sven Tüür’s new accordion Adm. Juan Rodriguez, paid visits on Thursday to the concerto “Prophecy”, with soloist Mika Väyrinen. commander of the Estonian defence forces Lt. Gen.

5 Events in honour of the Republic of Estonia’s 90th anniversary will continue at the end of April and beginning of May in Lille, where Estonian Days will be held from 26-27 April.

ECONOMIC NEWS

Currency rates in kroons: http://www.eestipank.info/dynamic/erp/erp_ en.jsp (Bank of Estonia)

Analysts see Positive Developments in Estonia's Foreign Trade Mar 27 - The narrowing of Estonia's foreign trade gap in January slightly surpassed expectations, the mainstays of export are in good health, and the trend is positive, analysts say. "The foreign trade numbers for January suggest that the share of net export in the gross domestic product growth could increase this year. If import expanded considerably faster than export since the beginning of 2006, then the trend was reversed in the last quarter," SEB Bank's economict Ruta Eier said. "The contraction of consumption and investment has resulted in negative import growth while export continues to be fairly strong. The 4 percent growth in total export may not appear large at first sight, but all the main pillars of export continue in good health," Eier explained. Hansabank Markets analyst Maris Lauri said that after weak December export showed pretty solid growth in January which came up to expectations. Growth continues to be held back by the export of mineral products and electronics, and a drop in the export of passenger cars to Latvia also makes a certain contribution.

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