BONJOUR L'ESTONIE

Ansip meets with Prime Minister Cameron and Deputy Prime Prime Minister Clegg

London – Prime Minister Andrus Ansip met with Prime Minister David Cameron and Deputy Prime Minister Nick Clegg of the United Kingdom in London today. Discussions ranged from defence cooperation and the NATO mission in Afghanistan to issues related to the European Union. Prime Minister Cameron also mentioned that the United Kingdom would be joining NATO’s cyber defence centre of excellence, which is based in Tallinn.

“Relations between Estonia and the United Kingdom are very good,” Ansip said. “There are many reasons for that, but one is without doubt our excellent cooperation in the field of defence. We’re glad to hear that the United Kingdom has decided to join the cyber defence centre of excellence and appoint its own expert to the centre.”

Prime Minister Ansip also thanked the United Kingdom for its contribution to Baltic air security.

Speaking of defence, the heads of government agreed that the NATO allies had achieved an outstanding level of cooperation as part of the Afghanistan mission and that their joint defensive work should continue in future. Prime Minister Ansip confirmed that Estonia would contribute further to efforts in Afghanistan this year, again with a full deployment of 170 defence forces personnel, and that the country would fulfil its duties as an ally for as long as its support is needed.

Tallinn boosts wages for city employees

Many on the City of Tallinn's payroll will see pay raises during the first half of the year.

On average, wages will grow 4 percent, although some will receive higher raises. For instance, specialists at the downtown social outreach center - which provides services to the elderly, those with disabilities, and others in need - received a 15 percent raise this month, diminishing an income discrepancy between it and similar centers elsewhere in Tallinn, according to the city newspaper Pealinn.

The city's financial director, Katrin Kendra, said those benefiting from the pay raises include the Tallinn Philharmonic, the central library, Tallinn City Museum, and the Linnateater theater.

Incomes will also increase at the city's social and youth outreach centers, as well as at pre-school establishments and for public transport workers.

Use of cash grows in Estonia in 2012

350 million euros more than the previous year was withdrawn from 754 ATMs in Estonia in 2012, which means an annual growth of 13%, LETA/Public Broadcasting cites data of security services company G4S.

The average sum of money withdrawn from an ATM has also increased: while in 2011, it was nearly 76 euros, in 2012 it was 83 euros. Just like the year before the 50 euro banknote continued to be the most popular. "The rumours about the loss of popularity of cash as a means of payment are strongly exaggerated," said G4S Eesti cash division director Veiko Vaher.

81 bank notes and 186 coins suspected of being forged were forwarded to the police last year. The amounts have increased somewhat last year.

Why Europe’s healthiest economy has its worst drug problem?

Aivar has already begun to sweat. His last hit of “China white” was yesterday evening. Shortly his limbs will begin to ache, and if he doesn’t get a fix soon he will vomit what little food and water he’s had since waking up two hours earlier.

He is at a needle exchange in the center of Estonia’s capital Tallinn and is using the opportunity to reflect on the deaths of his closest friends and the four overdoses he has suffered since he started injecting drugs 14 years ago. The 32-year-old understands how easily he could add to the statistic. One day the defibrillators will not work, he says. Still he can’t stop. Neither can so many other Estonians.

Estonia has the highest number of per capita drug fatalities anywhere in Europe. The reason is fentanyl. Colloquially it is called China white, Persian white or Afghan. But they’re misnomers — glamorous tags attached to a powder, prosaically synthesized in clandestine labs across the border in Russia. It arrived in 2002 during a heroin drought. It never went away. These days it is the drug of choice for the many thousands of dedicated injectors in Tallinn. And, according to government chemists at the sparkling new labs in the capital’s Estonian Forensic Science Institute, it is anywhere between 100 and a thousand times stronger than the scag it replaced.

Tax free minimum should be increased in Estonia : Ligi

Estonian finance minister Jürgen Ligi said in an interview to Eesti Päevaleht that instead of increasing the tax burden on qualified labour and capital, which some European politicians aspire to do, tax free minimum should be increased in Estonia, of which poor people would benefit at once.

Ligi said, commenting upon the tax debates in Europe now, that income free minimum has to start increasing and will start increasing again for us. This would support people with lower incomes directly and would be the content of one the most expensive upcoming tax changes in Estonia.

Currently the income tax free minimum is 144 euros a month.

Ligi stated though that tax concessions are too expensive, too undirected and poor people don’t benefit from them. The tax burden in labour is already too high and we have to work on social tax and associate it with the topic of disability to work, he said.

Estonia's population drops to 1.28 million

The estimated population of Estonia was 1,286,540 people as of 1 January 2013, reported Statistics Estonia.

This is 7,915 people fewer than at the end of 2011, mainly because of negative net migration, according to preliminary figures released by Statistics Estonia that has updated the population with data on registered births, deaths and migration.

A major factor in last year's decline was emigration, with 10,871 people moving out of the country, a full 4,657 more than the 2011 number. Meanwhile, 4,416 people immigrated to Estonia in 2012, putting the net migration loss at 6,455.

The remainder of last year's population drop was the result of Estonia's lingering negative birth rate -  14,054 live births and 15,514 deaths were registered in 2012.

The nation's population has been in steady decline since 1991.

Producer price index in Estonia decreased by 2.1% in December y-o-y

According to Statistics Estonia, in December 2012, the producer price index of industrial output changed by -0.2 % compared to November and by 2.1% compared to December 2011. Let's say that most of us are not quite ready to believe this ...! So many food prices have jumped up by 33 to 50% over the past 2 years ...

In December, compared to the previous month, the producer price index was more than average influenced by the decrease in prices in the manufacture of refined petroleum products and heat energy as well as by the increase in prices in the manufacture of food products and wood products.

Compared to December 2011, the index was more than average influenced by the increase in prices in the manufacture of food products and wood products and by the decrease in prices of electronic products and refined petroleum products.

Change in the producer price index of industrial output by economic activity, December 2012

Economic activity according to EMTAK 2008	December 2012 – November 2012, %	December 2011 – December 2012, %
TOTAL	-0.2	2.1
Manufacturing	-0.1	2.0
Mining	0.2	2.7
Electricity, gas, steam and air conditioning supply	-1.0	3.1
Water supply; sewerage; waste management and remediation activities	0.0	0.4

In December 2012, the export price index changed by -0.1% compared to November 2012 and by -0.3% compared to December 2011.

How Estonia preserved its culture

Recently, my wife, Allyson, and I landed in Estonia, a tiny, little-known nation tucked away in the northeast corner of Europe just south of Finland. Although my parents were Estonian, I had never visited before. Now, I was seeking my roots. For the first day we walked in Tallinn’s Old Town, captivated by one of Europe’s most beautiful capitals with church spires, thick battlements, towers and narrow cobblestone streets. I was thrilled to hear the Estonian language and see signs in Estonian.

Old Town is known for its well-preserved and authentic Hanseatic architecture.

The next day, a relative pointed to a stately Gothic house. “That was the former KGB headquarters,” she said. “This street was the most feared place in the city.” It was a reminder that most of Estonia’s history has been spent under the heel of invaders.

Estonia has a Nordic culture and its language is similar to Finnish. Estonians are educated and enjoy music, literature, and nature. But with a small population (about 1.3 million) situated in a much-coveted location, the country has seen many battles and conquests. The ruins of castles and fortresses are everywhere. Until 1991, the nation enjoyed freedom only between 1920 and 1940.

Where Tallinn's locals hang out during winter

From a series of 44 city blogs comes a small selection of locals' tips for the city of Tallinn. The city Tallinn is represented by three local gals -- Karina, Gea who Kristiina -- who share their favorite spots from around the city on the blog Spotted by Locals -- Tallinn.

So, where are the locals going in Tallinn when it's colder and there's a (high) chance of snow? They warm up with coffee or by playing outside. At Lauluväljak you can rent snowtubes by the half hour to slide down the slopes! Or in the Old Town, strap on some skates at Harju street ice rink.

If these active things are not up your alley and you want more than a coffee, then Harmoonikum, an eco-spa, might be more for you.

Bart van Poll

Estonian Air for sale in principle : Parts

Minister of Economic Affairs Juhan Parts said yesterday that Estonian Air is on the market, speaking on TV3+, a Russian language television network.

Speaking about the future of the company, Parts said that after SAS opted out of Estonian Air, the government had a choice of either keeping the national carrier or not, Äripäev reported.

Parts added that the best solution would be to find a partner. “I don't see an option that makes me happy and to be honest: Estonian Air is for sale, everyday,” Parts said.

The minister finished the interview by saying that his family is his number one priority but Estonian Air takes a close second.

Bank of Estonia does not look good in VEB Fund affair : Ansip

When commenting on the VEB Fund audit, Prime Minister Andrus Ansip noted on Thursday that one cannot condone the fact that the Bank of Estonia had issued a falsified document in this case, writes LETA/National Broadcasting.

“It is not something the former executives of the Bank of Estonia could be proud of; the fact that the bank issued a document with false information,” said Ansip at the Government press conference on Thursday. He emphasised that those who ought to remember the events of the case, should also refresh their memories.

The audit report published on Wednesday indicated that in 1995, a document with false information was drafted in the Bank of Estonia, granting the Russian company TSL 32 million dollars worth of claims against VEB (Vnesheconombank). At the same time, it was not possible to identify the person or persons culpable for submitting false data.

The Public Prosecutor’s Office had noted last year already that the document signed by former Governor of the Bank of Estonia Vahur Kraft might contain false data, but no investigation was launched, as the possible crime would have reached its statute of limitations.

Ryanair announces new Tallinn route from London Stansted

RYANAIR announced a new route from London Stansted to Tallinn in Estonia from March 31.

And the low cost airline celebrated the new route by releasing 100,000 seats across its European network, at prices starting from £15 for travel on Monday, Tuesday, Wednesday and Thursday in February and March.

These ‘all in’ low fares will be available on over 1,000 of Ryanair’s European routes but must be booked on ryanair.com before midnight on Thursday January 17.

Ryanair’s new London Stansted to Tallinn route went on sale on ryanair.com

Estonia sets immigration quota at 1,062 people

The Ministry of Interior has made a proposal to set the immigration quota at 1,062 people for 2013 which represents 0.075% of Estonia’s permanent population, writes Postimees daily.

According to the proposal, the quota would be divided into two parts, 531 immigrants in the first half and 531 in the second half.
In 2012, the quota was 1,008 people and represented a similar proportion from the country’s permanent population.

As of January 1, there were 178,221 foreigners living in Estonia with a long-term residence permit. There were 4,812 EU citizens who had permanent residency rights in Estonia.

Toomas Hõbemägi

Dark secret of the Bank of Estonia

Now that the findings of the audit made by the Estonian central bank about the VEB Fund prove that the bank forged documentation, the key question is who prepared the document which was used to take money out of Vneshekonombank.

The bank’s then deputy governor Vahur Kraft yesterday denied any wrongdoing although he had signed the document in question in 1995. Kraft who now runs Nordea Bank in Estonia said that he had signed many documents while in the central bank, but never deliberately falsified documents.

Ardo Hansson, current governor of Bank of Estonia, apologized yesterday on behalf of the central bank, and said that while the letter was created in the bank, no harm to the state was done.

The bank’s internal probe showed that in 1995, the Bank of Estonia deliberately had prepared a document falsely stating that a Russian company named TSL International had $32 million worth of claims against Vneshekonombank, while its actual claim was several times lower. Internal auditors said they were unable to determine who was to blame for preparing the letter which appeared to be part of an orchestrated effort to recover funds frozen in VEB.

Patriarch Bartholomew to Visit Estonia

The Archbishop of Constantinople, Patriarch Bartholomew, will attend the 90th anniversary of the founding of the Apostolic Orthodox Church of Estonia in September.

“In 1923, Archbishop of Constantinople Meletios granted our church autonomy. That means internal independence with a few slight constraints. The head of the church must be sanctioned by the archbishop, for example,” Mattias Pall, head priest of the church, told ETV Tuesday.

The trip will be Bartholomew's second to Estonia, having previously visited in 2000. The church yesterday marked the death of bishop and martyr Plato, who was murdered by Bolsheviks in Tartu in January 1919. The bishop, who was Estonian, was canonized 13 years ago.  

Head of the Russian Orthodox Church, Patriarch Kirill, is reported to be set for a visit to Estonia in June.

Estonia to keep ex-Soviet military sites as tourist attractions

Estonia will keep some of the abandoned Soviet-era military sites on its territory as historical legacy and potentially as tourist attractions, the Estonian television reported.

Culture experts discussed on Tuesday during a meeting at the Museum of Estonian Architecture the creation of a database categorizing the hundreds of ex-Soviet military installations in order to determine their historical value and importance as potential tourism venues.

“There are opinions that all traces of the hateful Soviet legacy in Estonia must be wiped out. However, we must widen our historical vision,” Leele Välja, the director of the museum said. “We cannot keep silent about these periods or pretend they never existed.”

The participants of the meeting also agreed that some of the facilities, especially the abandoned missile bases and storages for nuclear warheads could become ‘magnets’ for tourists after repairs. The controversy over the post-World War II period when Estonia was part of the Soviet Union remains a sore point in Russian-Estonian relations.

The Estonian authorities claim that their country was occupied by the Soviet Union along with Latvia and Lithuania between 1945 and 1991, while the Russian government and its state officials insist that incorporation of the Baltic states was in accordance with international law and gained de jure recognition by the agreements made in the Yalta and Potsdam conferences and by the Helsinki Accords.

Palmer and his assistants cost more to Estonian Air than Taskila

Estonian national carrier Estonian Air is unlikely to have saved anything when it fired CEO Tero Taskila that received 33,000 euros a month and replaced him with Jan Palmer and his two assistants Kjell Fredheim and Mikael Wangdahl.

Palmer has said that both Fredheim and Wangdahl are experienced aviation executives. Fredheim has been employed by large airlines and regional operators such as SAS, while Wangdahl has been CEO of several Swedish airlines including Skyways which went bankrupt during the time he was managing it.

The media has been wondering why Estonian Air needs such expensive executives while it is reducing the route network, not expanding it, nor plans to buy new aircraft. Another question is why it was not decided to keep Taskila in his job and downsize the airline to a miniature airline with ten routes.

Ministry of Economic Affairs refused to comment the questions, saying that the contents of the agreements were confidential. When the media asked the same from Fredheim, he simply refused to answer, saying that confidentiality clauses in his employment contract do not allow him to give such answers.

Palmer is earning 21,500 euros a month in Estonian Air. This means that Estonian Air saved money only if both consultants would work for 6,000 euros a month which is highly unlikely.

Karmen Pedaru : Michael Kors - Spring/Summer 2013

Estonia's death rate continued to outweigh births in December

According to the data of the population facts department of the Estonian Ministry of Internal Affairs, 346 deaths more than births were registered in December 2012, LETA/Postimees Online reports.

1,008 births were registered in December as well as 1,354 deaths. 505 of the newborns were boys and 503 girls. 19 pairs of twins were born. The most popular boys’ names in December were Rasmus (14 cases), Martin (8) and Timur (7). The most occurring girls’ names were Sofia (12), Anna (9) and Arina (6).

584 marriages were concluded and 228 divorces were registered in vital statistics offices. In December 2011, 1,084 children were born, 1,273 people died, 419 marriages and 264 divorces were registered.

Riigikogu seeks solutions to citizenship law gap

TALLINN - The Estonian Parliament [Riigikogu] discussed on Tuesday the proposal of the Legal Chancellor to find a solution to the situation that children of people, who received Estonian citizenship via naturalization, don’t get automatically Estonian citizenship, Public Broadcasting reports.

The topic has been discussed at the parliament's constitutional committee and received its support. The problem is that if people who received Estonian citizenship via naturalization, don’t apply for a residence permit for their child, a situation emerges that the legal status of the child is undetermined when the child gets to be 15 years old.

Usually this happens when the parent misleadingly assumes that since they are Estonian citizen, the child is an Estonian citizen which is not the case. The Legal Chancellor thus made a proposal that such people could get Estonian citizenship automatically. There are around 500 such children in Estonia now, but not all of them could be interested in getting Estonian citizenship.

The government has so far taken a position that if a child has de facto lived in Estonia for 8 years, then he/she can get Estonian citizenship even if the child lacks a residence permit due to parents’ mistake. So far there have been 13 such cases that have found a positive solution. Legal Chancellor said that since he cannot make a proposal for through revision of citizenship rules, he continues making proposals case by case.