BONJOUR L'ESTONIE

15 facts one should know about the changeover to the euro

• * Estonia will change over to the euro at the first opportunity, i.e., when all the respective requirements (the so-called Maastricht criteria are met).
• There are no quantitative or temporal limitations as regards exchanging kroons into euro.
• Both account money and cash kroons will be exchanged into euro at the official exchange rate of Eesti Pank.
• The final exchange rate will be formally approved upon the accession to the euro area by a unanimous decision of the euro area Member States and Estonia. The Estonian kroon has been pegged first to the Deutsche Mark and then to the euro for over fourteen years. Thus Eesti Pank and the government presume Estonia will join the euro area on the basis of the current exchange rate of EUR 1 = EEK 15.6466.
• Kroon deposits will be automatically converted to euro on the €-day.
• Kroon cash and euro cash will be in dual circulation for two weeks after the €-day.
• Banks will exchange kroons into euro at the official exchange rate of Eesti Pank and without a service fee for a month prior to and six months following the €-day.
• Bigger bank offices will exchange kroons into euro for a period of one year. Thereafter, Eesti Pank will continue to exchange kroons into euro for an unspecified term and without a service fee.
• Shops will display prices in both kroons and euro for 4 to 6 months before and after the €-day.
• The Consumer Protection Board will monitor price developments before and after the changeover to the euro.
• As a rule, taxes and benefits will be rounded in the more favourable direction for taxpayers and beneficiaries.
• Changeover to the euro eliminates the theoretical possibility of devaluation of the kroon.
• Enterprisers will no longer have to invest in hedging exchange rate risks related to the euro and transactions costs will be smaller.
• The risk of a sudden increase in interest rates will be considerably smaller.
• Travelling will be more convenient, as the need to exchange currency in the euro area disappears.

ILVES is Estonia new president

As predicted (see my note of 06-06-2006)

TALLINN - Estonian president-elect Toomas Hendrik Ilves, who beat current President Arnold Rüütel in the race for the presidency, has vowed to raise the Baltic state's international profile in the European Union and NATO.

Ilves entered Estonia's low-key contest for the largely figurehead presidency as second favourite behind Rüütel.

But the 52-year-old Ilves, who is currently a Social-Democratic member of the European parliament, rapidly won popular support after the parliamentary rounds of the election, held last month.

On Saturday he was elected president of this small Baltic state of 1.3 million people, with 174 votes in a 345-member electoral college, beating Rüütel by 12 votes.

Born in Sweden to emigre parents, who fled the 1940 Soviet occupation of Estonia, Ilves has spent the better part of his life in the United States, Canada, and Germany.

He has a degree in psychology, and has worked as head of the Estonian department of Radio Free Europe in Germany.

In 1993, two years after Estonia .....

Valijamehed alustasid Estonia teatrid presidendi valimist

Peeter Kuimet, PM online

* Estonia teatrisse kogunenud valijamehed alustasid kell Eestile järgmise presidendi valimist. Neil tuleb valik teha ametisoleva presidendi Arnold Rüütli ja Toomas Hendrik Ilvese vahel.

Hääletamine esimeses valimisvoorus lõppeb kell 13.15, misjärel asub valimiskomisjon hääli kokku lugema.

Kokku on valijamehi 345, seega osutub edukaks kandidaat, kes kogub vähemalt 173 valijamehe hääle.

State decoration for the French Ambassador

President Arnold Rüütel today at Kadriorg signed a resolution to confer the 1st class Order of the Cross of Terra Mariana on Chantal Yvonne Marie Henriette de Ghaisne de Bourmont, the Ambassador of the Republic of France to the Republic of Estonia during the years 2002-2006, in recognition of her services to the Estonian state.

Public Relations Department of the Office of the President
Kadriorg, September 23, 2006

Election présidentielle samedi en Estonie

Jari Tanner

TALLINN -- Un collège électoral de 345 membres désignera samedi le nouveau président de l'Estonie, un poste essentiellement honorifique. Le président sortant Arnold Rüütel, 78 ans, candidat à un nouveau mandat de cinq ans, fait figure de favori.

Le mois dernier, les 101 membres du Riigikogu, le Parlement estonien, n'avaient pas réussi à élire un candidat au terme de trois tours de scrutin. En vertu d'un système électoral complexe, il revient désormais à un collège électoral de 345 membres, composé des députés et représentants des conseils municipaux, dont beaucoup soutiennent M. Rüütel, d'élire le chef de l'Etat.

"Beaucoup de choses ont changé (en Estonie) ces cinq dernières années, mais pas autant que je l'aurais aimée", a déclaré le président sortant au quotidien "Postimees" cette semaine, pour expliquer sa décision de briguer un nouveau mandat.

Son principal rival, l'eurodéputé Toomas Hendrik Ilves, ancien diplomate et journaliste, a occupé deux fois le poste de ministre des Affaires étrangères. Né en Suède de parents estoniens, il a grandi aux Etats-Unis, où il a obtenu un diplôme en psychologie.

M. Rüütel est populaire dans les campagnes, mais il est rejeté par le monde des affaires et de la politique à Tallinn, la capitale, en raison de son passé de dirigeant à l'époque de l'Union soviétique, de son âge et d'un prétendu manque de vision politique.

Ses partisans rétorquent que M. Ilves a passé une grande partie de sa vie hors du pays et ne comprend pas les questions intérieures dans ce petit pays balte de 1,3 million d'habitants, qui a rejoint l'Union européenne et l'OTAN en 2004.

"Il n'a pas du tout expliqué jusqu'ici comment il .....

Commission proposes to extend energy crop aid scheme to all Member States

* The European Commission today proposed to extend the energy crop premium introduced by the 2003 Common Agricultural Policy reform to the eight Member States which currently do not benefit from it.

This would involve increasing the maximum area which can benefit from the aid to 2 million hectares from 1.5 million at present. In a further push to encourage the production of feedstocks for renewable energy production, the Commission also proposed allowing the Member States to grant national aid of up to 50 percent of the costs of establishing multiannual crops on areas on which an application for the energy crop aid has been made.

In the interests of simplifying the management of the CAP, the Commission has also proposed to allow eight Member States which joined the EU in 2004 to continue operating the Single Area Payment Scheme for a further two years until 2010.

The countries affected are the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Poland, and Slovakia.

An American view of Tallinn

* After Helsinki we caught a ferry to Tallinn, Estonia’s capitol city. It was the only way to go, because driving back through Russia would have required additional visas. Nice ride. three hours. There was no border patrol on the Finnish side and in Estonia the cars ahead of us were each waved through in a matter of seconds. The customs officer grimaced when he saw my American passport and he held up a finger (the index, doofus !) before he stalked reluctantly to his office. I swallowed hard when I noticed in the rear-view another guard staring hard at my bogus plate. He barked something in what I took to be Cantonese and my heart stopped – but he was only telling me to move along. The first guard was 10 yards up, holding our passports and smiling. I could have wept for joy.

We found the city campsite on the northern outskirts of Tallinn, where the tailgating fool behind us honked furiously when I actually slowed down to turn. Bear in mind I use the word “campsite” very loosely: it stood at the top of a steep hill adjacent to a construction site that was burrowing its way down to… well, not China. California, anyone ? To the right of the dig were two low, flat rectangular blocks of concrete. One was some sort of contractor’s office, the other was the camping office. And between the two was a weeded, narrow strip of grass that cost 20 Euros per night. But the office had the cleanest and largest restrooms in Eastern Europe. And guess what ? They had saunas, too. Cute gal behind the desk, but a bit of a prude. If you go (and for camping, it’s the only game in town) don’t make any true confessions to her. You’ll regret it.

T. Rowe Price registers funds in Estonia

T. Rowe Price Global Investment Services has registered its Luxembourg-domiciled SICAV range of funds in Estonia, enabling a broader range of private clients and institutional investors to access its wide range of fixed income and equity products. Initially this will be through its distribution relationship with Hansabank, the largest financial institution in the Baltic countries, whereby T. Rowe Price's products will be made available to its local private client base.

Estonia: Eurovision stars nominated for MTV Europe Awards

Reimo Ani

On November 2 the annual MTV European Music Awards gala will take place in Copenhagen, Denmark.  For the first time ever an award for the Best Baltic Act will be presented.  Four of the five nominees are known from the Eurovision Song Contest.

The nominees for Best Baltic Act are Brainstorm (Latvia), Inculto (Lithuania), Tanel Padar & The Sun (Estonia), Skamp (Lihtuania), Vanilla Ninja (Estonia), of which four have entered Eurovision.  Tanel Padar (pictured above), who won with Dave Benton in Copenhagen 2001, said that they don't think they'll win, because ''there are so many other good artists''.  Vanilla Ninja represented Switzerland in 2005 with song Cool Vibes. ''We are very happy ! Of course we hope to win. We hope that all our fans are going to vote for us, but other bands are good too,'' said Katrin, one of the members of Vanilla Ninja.

From Lithuania one of two nominees, Skamp, represented country in Copenhagen in 2001.  The Only nominee from Latvia is Brainstorm, who were the first ever Latvian artists in the Eurovision Song Contest. Latvia made debut in Stockholm 2000 of course.

Looking beyond the Baltics, there are three well-known Eurovision stars.  Lordi have probably the best chances to win the title of Best Finnish Act 2006, after all, they did bring the country its first ever Eurovision victory. From Russia Dima Bilan (Russia 2006) and t.A.T.u (Russia 2003) are both nominated for Best Russian Act.  You can vote for you favorites at mtveuropemusicawards.com.

Estonia about Russia : 2nd decade of September

* The media are alarmed over Russia's plans to develop its nuclear energy projects near the border with Estonia instead of closing the outdated nuclear power plant near St. Petersburg. Another cause for concern is that Chernobyl-type reactors will stay in use for up to 15 years, until new ones have been commissioned. "Two out of the four reactors at the nuclear power plant in Sosnovy Bor have been used for 30 years already. Estonia will continue to be endangered by the NPP in the Leningrad Region at least until 2021. By that time the last reactor, which is similar to Chernobyl's, will have been closed." (Postimees, September 14.)

Commentators say Madonna's concert in Moscow had political implications as the Kremlin is making efforts to portray Russia as a developing democracy. "The political significance of the concert may be compared to Paul McCartney's performance in Red Square three years ago. The fact that the concert had taken place next to the Mausoleum showed that Russian authorities no longer considered the square, where the former Communist leaders were buried, an untouchable holy place... Among other things, Madonna told the audience at the concert that Russia had been a democratic country for 15 years now. This encouraged Kremlin political strategists, who hold debates about sovereign democracy now and then. And if teenagers do not care about the political rhetoric by United Russia activist Vladislav Surkov, Madonna's concert was the very venue for such people." (Postimees, September 14.)

Monument to Soviet soldiers in Estonia vandalized

TALLINN - A monument to Soviet soldiers in Estonia's Lihula region has been defaced with paint and mud as Estonia prepares to mark the 62nd anniversary of Tallinn's liberation from Nazi troops on September 22, the Postimees newspaper reported on Friday.

The vandalism occurred on September 21.

A monument to Estonians who served in the SS was put up in August 2004 at the same cemetery where the monument to Soviet soldiers is located. The government's decision to dismantle the SS monument triggered a wave of vandalism against monuments to Soviet soldiers across the country.

Estonian nationalists are planning a number of rallies on September 22 demanding that Tallinn's monument to Soviet soldiers be dismantled.

Estonian jails are worth the wait

TALLINN - It used to be said that Estonians would line up for anything during the Soviet era, from bananas to blue jeans. But that all changed with independence. Yet in today’s EU Estonia, almost 900 people are stuck in line for a most unlikely commodity - a prison cell. Not only are Estonian criminals willing to wait for their incarceration, they’re also angered by anyone who skips in line.

Presidential nominees neck-and-neck

TALLINN - The gap between Estonia’s two presidential nominees has narrowed, with analysts predicting a nail-biting vote count at the Electoral College meeting on Sept. 23. Supporters of the two candidates, incumbent Arnold Ruutel and Social Democrat Toomas Hendrik Ilves, both claim their side has the numbers to win the election.

A simple majority in the 347-member Electoral College will secure victory.
Yet Ruutel has already expressed doubt that the Electoral College will be able to select a candidate within the allowed two rounds of voting.

In such a case, Estonia faces the undesirable prospect of the vote returning to Parliament – the very body which was unable to muster enough cohesion to select a candidate in the first place.
Epp Maarten, deputy head of the Central Electoral Committee secretariat, said the vote would continue to bounce between Parliament and the Electoral College until one body was able to find a large enough majority to elect a candidate.
“This is the only system, there is no back-up. First Parliament must try, then the Electoral College. If the Electoral College fails, it comes back to Parliament, and so on,” Maarten said.

During a national radio debate with Ilves, Ruutel said .....

Estonian Russians delay anniversary of Tallinn's liberation celebrations

TALLINN - Estonian Russian organizations have delayed the holding of events to mark the anniversary of Tallinn's liberation, initially scheduled for September 21-23.

"Estonian Interior Minister Kalle Laanet has ordered unprecedented security measures for Tõnismagi for September 22. It was prohibited to hold any actions at the site. Any expression of will was pronounced illegal, and the threat of using special means, including the use of firearms, was made," a Thursday statememt by Russian organizations says.

Economic growth and well-being of people are not antipodes

Tallinn – Prime Minister Andrus Ansip emphasised in his speech at the conference “Business Plan 2007” held by business daily Äripäev that the economic success and well-being of people are not antipodes.

In order to achieve success, the state has to look further ahead than one year, and not settle for the setting of mediocre or short-term objectives. Estonia’s objective must be to become one of the five wealthiest states in the European Union, where people live longer, are healthier and happier.

According to Prime Minister Ansip, Estonia can become, within the next 15 years, one of the wealthiest states in Europe, provided that economic growth is 8% per year. This can be ensured if the state provides more flexible conditions for part-time employment, the life expectancy of people increases, productivity rises, and structural reforms in the economy take place.

“While we have no large problems with employment, productivity in Estonia is very low.. The general productivity level in Estonia is only 57% of the EU average ; productivity per employee is lower than in Poland,” said Ansip.

Economic development also brings about a rise in salaries. “Salaries have grown quickly. I am sure that the current pace of salary growth will continue for years to come. Entrepreneurs can adjust to it only by raising productivity,” said Ansip. According to Ansip’s forecast, in fifteen years the average salary will be 40,000 kroons and the average pension 10,000 kroons.

In the opinion of the Prime Minister, the retention of the current clear and simple taxation system is most important.

At the conference, the Prime Minister suggested the idea that the income from the stabilisation reserve could, in the future, be used for the payment of the additional old-age pension. “Already, the present reserves would allow, for example, the payment of an additional pension of 500 kroons to everyone older than 80,” said Ansip.

In an ideal scenario, income earned from the state reserves could comprise an ever-increasing share of that part of the old-age pension which does not depend on the salary and length of employment of people. The Prime Minister said that such a change would encourage people to take a more serious interest in the matter that unreasonable expenses would not be made from the state budget even when the receipt of income is extremely good. It is also proof that fast economic growth and well-being of aged people are not antipodes.

Yours sincerely,
Government Communication Office
_____________________________________
Briefing Room of the Government Communication Office
http://www.valitsus.ee/brf/ 
[email protected]


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Valitsuse kommunikatsioonibüroo briifinguruum
http://www.valitsus.ee/brf/
[email protected]

Savisaar : 'Choosing president is choice between domestic peace and violence'

TALLINN - In a lengthy interview published the Wednesday edition of the Center Party’s Kesknadal weekly newspaper, party leader Edgar Savisaar said that choosing the next Estonian president would be a choice between domestic peace and violence.
“One may say that on Sept. 23 [the day of elections] we will be choosing not the president, but the future,” Savisaar said.
He added that it was up to Electoral College members, who will elect the president, to decide for which future they vote.
“Maybe I’m seeing a ghost, but I cannot rule out that on Sept. 22 and 23 there will be a wish to bring politics to the streets ‘to do justice,”’ he said.

Baltic states best overseas investment say experts

* Emerging property markets in the Baltic states of Estonia, Latvia and Lithuania have are some of the best places to invest in property overseas, according to experts at the Property Investor Show.

The highest economic growth rates in Europe between 2000 and 2004 and recent economic reforms have made the Baltic countries attractive to foreign investors.

Prospects for strong capital growth are good as prices are currently rising fast in Estonia, Latvia and Lithuania, thanks to residents looking for better properties as they become more prosperous.

Tourism is also a factor in property price growth, with increasing numbers of holidaymakers visiting the countries.

Toby Stone, of investment advisors for Baltic real estate Bristol and Stone, says : "Conditions for property investment in Estonia, Latvia and Lithuania are strong and good returns can be obtained if you know which are the best areas.

"However, over the past few years the markets have become increasingly sophisticated and investors would be best advised to buy through a company that has presence in the country and fully understands the fast-moving market."

Nick Clark, of The Property Investor Show, comments : "Investors face a huge choice when deciding which markets to invest in.

"The Baltic states have a lot .....

Tiimari bought by Leo Longlife from Capman for EUR 61 millions

[email protected]

HELSINKI  - Finland's Leo Longlife said it has agreed to acquire Maritii Oy, the parent of household goods and stationery retailer Tiimari, from funds managed by private equity firm CapMan and individual investors.

The deal, including assumed debt, is valued at EUR 61 millions, Leo Longlife said.

Separately, CapMan, which has offloaded its 83 pct stake in Maritii, said the transaction will see it book a EUR 3 million gain in its full-year accounts.

Tiimari operates 194 stores in six countries --including its core Finnish market-- and generated a turnover of EUR 76.5 millions in 2005.

Leo Longlife, which manufactures stationery and craft items, said it plans to install Tiimari's head Kristina Illi as the group's new CEO once the deal is closed on Oct 9.

It also plans to launch .....

Skinny models out of fashion

First Madrid banned too-thin models, now London and Milan may follow suit.

They're the queens of the catwalk: beautiful, glamorous and thin — sometimes, very thin.

But are some models so thin that they should be kept off the runway ?

Some officials want to ban super-thin models from the annual London Fashion Week.

After facing protests from women's groups, Madrid, Spain, rocked the fashion world by rejecting models from its fashion week.

"I thought what a good idea. … So many young people are anorexic or bulimic," said Dee Doocey, a member of the London Assembly.

London officials say stick-thin models send the wrong message to girls.

In Madrid, 30 percent of the models didn't make the cut. Many others decided not to go.

"I'm a little bit upset because we love to go there, and we love Spain and everything," said model Davina Mulimbi.

The Madrid standards still cut a very trim figure: a 5-foot-9-inch model, for instance, has to weigh 123 pounds.

Industry Debates Weight Issue

At New York's Fashion Week, some designers said Madrid's new policy was in line with what they already did.

Gazoduc nord-européen : des experts estoniens recommandent à Tallinn de se joindre au projet

TALLINN - Avec la Pologne et la Finlande, l'Estonie ferait bien d'étudier la possibilité de se joindre au projet de Gazoduc nord-européen développé par la Russie et l'Allemagne, estiment les experts de l'Institut de la politique extérieure estonienne.

Leur rapport intitulé "La sécurité énergétique de l'Estonie dans le contexte de la politique énergétique de l'UE", qui a été débattu lundi lors d'une réunion de la commission parlementaire pour les affaires internationales, recommande également à Tallinn de rechercher les possibilités de développer un système énergétique unique au sein de l'Union européenne et de prendre une part plus active à l'élaboration de la politique énergétique unique de l'UE.

Contacté par RIA Novosti, le service de presse du parlement estonien a précisé qu'une grande attention avait été accordée lors de la réunion à la dépendance de la politique extérieure estonienne envers les fournisseurs étrangers d'énergie. Les députés ont notamment rappelé la nécessité de "réduire les risques liés aux importations de gaz naturel russe", selon le service de presse.

Lancé en septembre 2005, le projet de Gazoduc nord-européen (GNE) prévoit la pose sous la Baltique d'une conduite entre la Russie et l'Allemagne, par laquelle le gaz russe arrivera en Europe vers 2010 en contournant les pays baltes et la Pologne. L'utilisation de la voie la plus courte (par la Baltique) et l'absence de risques de transit se répercutera positivement sur les coûts de transport du gaz, affirme Gazprom, un des protagonistes du projet. Moscou invite tous les pays d'Europe intéressés à s'y joindre, alors que la Pologne et les pays baltes, qui se verront privés d'une partie considérable de leurs recettes de transit, continuent de critiquer vivement le projet de GNE.