BONJOUR L'ESTONIE

Estonia : New worthless notes into your purses

* Due to the ever-retreating prospects of joining the euro currency zone, the central Bank of Estonia has announced it will print a new round of bank notes.

The currency supply was expected to be phased out and replaced by the euro. But the bank said the nation would need a new injection of notes prior to Estonia’s entering the eurozone.

The first to be replenished will be the two and 10 kroon banknotes – which may come as a surprise to many Estonians, who find their wallets overflowing with the near-worthless paper money.

Russian businessman embroiled in citizenship-for-cash scandal

By Joel Alas

TALLINN - Estonia’s system of granting citizenship to large investors has come under scrutiny after a proposed recipient, Russian millionaire Andrei Filatov, was revealed as the sponsor of an anti-Estonian propaganda film. Filatov’s name was put forward for citizenship by Center Party leader and Economic Minister Edgar Savisaar, who said the transit company tycoon had contributed to the economy by making investments.

However, it was discovered that Filatov was the financier of a foundation that created the controversial Russian documentary “Estonia – Crossroads of History.”
The half-hour film, which was distributed earlier this year on DVD, depicts Estonia as a pro-Nazi nation and distorts the country’s history, according to those who have seen it.

Filatov, as director of the Russian transport company Severstaltrans, is one of 13 people to be considered for honorary citizenship by the Cabinet on Dec. 21. By law, the government is allowed to grant citizenship to 10 people each year for making outstanding contributions to the nation.

Previous recipients have included sportsmen and artists. But more controversially, businessmen who have made large investments are typically included on the list – including the Italian real estate baron Ernesto Preatoni, who was later stripped of his citizenship after running into problems with tax inspectors.

Midwinter magic in Tallinn

By Joel Alas

* TALLINN - Obtaining a ticket to a performance at the Tallinn City Theater (Linnateater) can be difficult at the best of times. When the theater hosts its annual international festival, it becomes harder still. Thankfully there are a handful of tickets left for the upcoming international theater festival, A Midwinter Night’s Dream, but don’t expect them to last.

“This festival is like a gift for our audience. Going to Japan or Africa to see a performance is very difficult, so we bring these performances here as a prize for our theater society,” says the festival’s director, Jaanus Rohumaa.
The four-day program includes companies from Iceland, Ireland, Japan, Ghana and Russia, as well as one home-grown production. All of the performances are translated into English and Estonian, making the festival the most accessible season for Tallinn’s foreign audience.

According to Rohumaa, good story telling transcends language.
“Our idea was to invite companies who present a type of theater we have never had here before. We have an African performer who tells stories through dance, singing and instruments, as well as some groups from Japan and Iceland who present their theater in a totally different way from us. But the main thing is good storytelling, which is the same everywhere. It’s the line that connects all these companies and the Linnateater,” he says.

EU inquiry deadline into Danske Bank acquisition of Sampo Bank Jan 30

* Sampo Bank is the third largest bank in Finland with an extensive branch network, units in Estonia, Latvia and Lithuania, and a recently acquired bank in Russia.

Danske Bank raised over 14 bln dkr though a new share issue.

The remaining amount will be funded through the issue of tier 1 hybrid capital, subordinated debt, and through other liquidity sources.

The integration of Sampo Bank into Danske Bank\'s information technology platform and organisation is expected to be completed by Easter 2008 and is estimated to generate annual cost and funding synergies of 610 mln dkr, which will have full accounting effect from 2009.

Integration expenses to 2009 are estimated at 1.6 bln dkr, with the majority of redundancies expected to take place through natural attrition. Sampo Bank will continue to operate as a local bank brand and will have its own management.

BUTTER SUITS MELT AWAY

* The owners of the celebrity hot spot Butter have smoothed over their differences.

Bala Associates and Alireza Ghassemi have quietly settled their sensational lawsuits charging Butter co-owner Scott Sartiano with slathering his pockets with hundreds of thousands of dollars of the club's cash, The Post has learned.

The terms of the deal, reached last month, weren't disclosed.

The two suits - which sought a total of $7.5 million - accused Sartiano of skimming from the hip Lafayette Street nightspot.

The suits also took aim at Sartiano pal and club kid Richie Akiva, who was described as the hot spot's "de facto treasurer."

Court papers charged that both sold "ownership interests" to the likes of hip-hop mogul Damon Dash and supermodel Carmen Kass, Akiva's ex-girlfriend.

Des intellectuels estoniens qualifient de servile la décision d'appuyer l'opération américaine en Irak

TALLINN - Des intellectuels estoniens ont appelé les membres du parlement du pays à ne pas voter la prolongation du mandat des soldats estoniens en Irak.

"L'Opération libération de l'Irak" a déclenché une guerre civile sanglante, a rendu la vie des Irakiens plus dangereuse qu'avant. Les agressions contre les habitants d'Etats étrangers se multiplient. Il est patent que l'occupation de l'Irak ne réglera pas le problème", lit-on dans un appel signé par plus de 300 écrivains, peintres, musiciens, enseignants et étudiants.

Le document a été publié par des grands moyens d'information estoniens, les signatures sont recueillies sur le site Internet de l'Académie de culture près l'Université de Tartu.

Des militaires estoniens sont engagés dans l'Opération libération de l'Irak" depuis le mois de juin 2003. Actuellement une section d'infanterie forte de 34 hommes se trouve en Irak. Le projet de loi sur la prolongation du mandat des troupes estoniennes a été adopté mardi dernier en première lecture. La seconde lecture est prévue pour le 19 décembre.

"La guerre en Irak a été déclenchée en dépit des protestations de millions de gens en Europe occidentale et en Amérique latine", rappellent les auteurs de l'appel adressé au parlement.

Putin signs law on Russia-Estonia pension security cooperation

MOSCOW - President Vladimir Putin has signed a federal law "On the Ratification of the Protocol Amending the Russian- Estonian Intergovernmental Agreement on Pension Security Cooperation of June 24, 1993," the Kremlin press service said on Monday.

The law was adopted by the State Duma on November 15, 2006, and approved by the Federation Council on November 24.

The protocol amends several articles of the agreement, which concern the calculation of pensions, the payment of pensions at a new place of residence, administrative and technical cooperation in the fulfillment of the agreement, and the period of the agreement's validity.

Estonia and Latvia set a hectic pace with good policies -- and good luck

The Economist

Doubling your living standard every six years would seem a breakneck pace of growth even in East Asia. In Europe, it is unheard of. But two Baltic countries, Estonia and Latvia, are growing at 11.6 per cent and 10.9 per cent, respectively.

This speed is unexpected. Of 13 forecasts looked at last year by the European Bank for Reconstruction and Development, the highest for Estonia was 6.4 per cent ; even Estonia's own central bank reckons that the long-term growth rate is only 7 per cent to 8 per cent.

The pair's high growth is an exceptional product of good luck and good policies. Both countries are stable, business-friendly and cheap, and lie close to large, rich markets.

They have flat taxes, cleanish government, balanced budgets and stable currencies pegged to the euro. Foreigners like all this : Estonia is Europe's biggest recipient per head of foreign investment.

Consumption is soaring in both countries, as is credit. Estonia will see money-supply growth of 33 per cent this year ; in Latvia mortgage lending rose by 90 per cent in the year to October, and credit-card lending doubled.

That reflects the rise of a western-style financial industry that lends in a way yet to develop in most of eastern Europe. "Foreign banking is a big reason for our success," says Andres Lipstok, governor of Estonia's central bank.

Can the good times last? Signs of a property bubble abound. The authorities want to tighten banks' lending. If a crash came, its effects should be contained by outside ownership of banks (99 per cent in Estonia, and 80 per cent in Latvia) : foreign shareholders, not local taxpayers, would suffer if loans went bad.

Both countries have huge current-account deficits (17.9 per cent of GDP in Latvia and 12.5 per cent in Estonia). But for poor economies trying to catch up on 50 years of development missed under communism, a thirst for imported technology is commendable. Balance sheets are strong -- indeed, Estonia has no net foreign debt.

Japanese Foreign Ministry has confirmed the visit of Emperor to Estonia

TALLINN - The Japanese Foreign Ministry has confirmed the visit of Emperor Akihito and Empress Michiko to Estonia next May.
The Japanese Foreign Ministry said Akihito would next year go on a European tour, visiting Great Britain, Sweden, Estonia, Latvia and Lithuania.
The schedule of the visit has been coordinated with the government of all the countries involved. Emperor Akihito and Empress Michiko will start their ten-day European tour on next May 21.
The British and Swedish governments and the presidents of Estonia, Latvia and Lithuania have extended invitations to the Japanese rulers.
The Japanese government has recommended to the imperial couple to accept the invitations in the light of good relations between the countries and visit those countries next May, the Japanese Foreign Ministry said.

“Estonia - Crossroads of History” expresses Russia’s position

* The Russian embassy in Tallinn expressed in the propaganda film “Estonia - Crossroads of History” Russia’s principled position on the inadmissibility of revising the outcome of World War II, the embassy said in a statement today.

The embassy said it had at the request of the authors of the film provided data about war graves in Estonian territory and written a foreword to it expressing Russian views.

The embassy expressed displeasure with Estonian reactions to the film.
“As regards the content of the publications concerning the film, it strikes the eye that the critics refer without a shred of proof to the “inaccuracy” of some facts in it, forgetting to express their attitude to the basic issues. Why do discussions of this kind erupt with increasing frequency in Estonia, a country that like Russia paid a tragic price for the defeat of fascism?” the embassy said in the statement.

Estonia seeks obstinately to rewrite history proceeding from current political interests and is creating on the parliamentary level a basis for the removal of a Red Army monument from its present location at Tõnismagi in central Tallinn, the embassy said.

Estonia charms Georgian journalists

* An exchange program for Georgian and Estonian journalists funded by the Open Society Foundation's East East Program: Partnership Beyond Borders recently sent nine Georgians in the media industry to visit Estonia.

The Georgian Media Council (of which The Messenger is a member) and the Estonian Johannes Mikheklson Centre organized the exchange project to help journalists become familiar with each others' countries. This programme believes that effective communication and the exchange of knowledge are the bases for democratic development. The idea is that the more journalists are aware of issues in other countries, the more they can educate their own population. Georgians and Estonians were chosen to visit each other's countries because both knew little of the other.

The Georgian Media Council selected nine Georgian journalists from various newspaper, radio and TV media outlets. Participants were selected from the TV stations Georgian Public Broadcasting and Rustavi 2, the newspapers The Messenger, 24 Saati, as well as regional newspapers in Kutaisi and Guria. The online newspaper Civil Georgia also sent a representative as well as did the Georgian Media Council. For seven days from December 1 -7 this group visited three cities in Estonia-the capital Tallinn, Tartu and Parnu.

An important aspect of the programme is to contribute to the relationship and exchange of experience between Estonia, a new member of both the EU and NATO, and Georgia, a south Caucasian country that has chosen the path towards the west in its foreign politics.

NonStop launches VOOM HD in Estonia

* Apparently even the HD companies believe it's truly better to give than to receive, as we've seen Poland, Spain, and the ole US of A receive new HD content in recent weeks. Next in line is, well, a little more of Europe, but it'll be "the first HD content" delivered to needy consumers in the Baltic region. NonStop Television has reportedly struck a deal with Estonian telecoms and IT provider Elion to make VOOM HD available on the firm's IPTV platform just a month after it launched in Scandinavia on Canal Digital. The company stated that Elion would be "the first HDTV provider in Estonia," but hopefully not the last. So for you folks stuck up in the northern sects of Europe, take heart, as a taste of HD is coming to cable and IPTV in your neck of the woods this February.

Estonia to blackmail Russia

* Baltic states are expected to join the Schengen zone in 2008. The new countries of the Shengen zone will not have frontier posts at their boundaries with the EU members. Due to this fact Estonia is threatening to forbid Russians entrance to the EU countries by Schengen visa if Russia refuses to sign a boundary treaty with Estonia on Estonian terms.
      As it is known, Estonia and Latvia still haven't settled the boundary problem with their eastern neighbour because of the territorial claims. A boundary treaty between Estonia and Russia, based on a historical document, was planned to be ratified in 2005. However, at that time Russia took some reference to the document as admission of Estonian occupation by the USSR, and at the last moment withdrew its signature. Now the Estonian side decided to precipitate the process and found an appropriate means for pressure on Russia – Schengen.

Heating : + another 13% in January

* Heating costs will rise by 13 percent next winter due to an increase in VAT rates to match EU taxation levels.

On Jul. 1, 2007, VAT costs on central heating, coal, fuel briquettes and firewood will increase 5 - 18 percent, while gas costs are also due to rise, the Economy Ministry said.

Some Social Democrat politicians called for the government to pay the difference in VAT costs to help ease the transition for customers. Such a subsidy was provided for some low-income households when an increase in shale oil costs saw power bills rise.

Such increases all the time, and people remain quiet. Amazing !

Dirty tricks foreshadowed in election campaign

By Joel Alas

TALLINN - Hopes of a clean campaign in the lead-up to Estonia’s general election next spring have been rattled after controversial businessman Oli-ver Kruuda promised to pull a stunt that would flout the ban on outdoor political advertising. Kruuda, a business magnate who controls dairy and chocolate companies, was criticized during the 2005 election for splashing advertisements across Tallinn simply bearing a letter “K” that was remarkably similar to the Center Party’s symbol – also a letter “K.”

At the time, Kruuda insisted the posters were advertisements for his “kohuke” dessert snacks, although it was widely believed they were intended as support for the Keskerakond, or Center Party.
The Estonian prosecutor’s office investigated the posters on the basis that they were a breach of campaign laws, which prohibit outdoor advertising in the weeks leading up to an election.

In its findings, the office declared that there was no traceable link between Kruuda’s kohuke ads and the Center Party.
Prosecutors found that although Kruuda was a known financial supporter of the Center Party, and although the “K” posters replicated the party’s own symbol, there was no evidence that the party had been involved in planning the advertisements.
In the wake of the findings, Kruuda has declared that he is planning another campaign stunt.

Tallinn’s top real estate up for grabs

TALLINN - The ownership of nearly 50 prime location real estate sites in Tallinn remains in limbo due to a dispute over the legitimacy of key pieces of government legislation.

'Ladybirds' is a pleasant diversion for youths and adults

* Ladybirds in Estonia are what are known as ladybugs in America; other than that, there isn't much about the movie "Ladybirds' Christmas" that won't translate well to an American audience.

This animated Estonian film from directors Heiki Ernits and Janno Põldma is a charming fable that should appeal to adults and children alike for its crisp, fresh visuals and whimsical attitude.

The story focuses on two young ladybirds, Mia and Tim, who obviously are in love but are shy about their relationship.

Tim calls on Mia in her treetop home, a thatch-like creation high in a forest tree, on a snowy evening with a present exchange in mind.

Their romantic evening is disrupted by what feels like an earthquake, and both hide in a tumbled wardrobe.

When they come to, their tree is relocated to a home in the city, festooned with glittering balls, ornaments and lights.

All they want is to return home, but the colorful and varied bugs in this new world have no idea what they are talking about.

EIB Issues Loan for Baltic Enterprises

European Investment Bank Issues $33 Million Loan for Baltic Enterprises

TALLINN -- The European Investment Bank said on Thursday that it is making a euro25 million (US$33 million) loan to the Hansabank Group to finance medium size Baltic enterprises.

The Luxembourg-based organization said the loan, the first for such companies in Estonia, Latvia and Lithuania, will be mainly used for projects in the manufacturing, energy and environment sectors.

"As recourse to new equity or bond issuance is often not an option, the rapid growth of midcap companies in the Baltic states continues to require financing in the form of bank loans," the EIB said in a statement.

The bank's vice president, Sauli Niinisto, said the EIB is also interested in major infrastructure projects in the Baltic region, especially in the energy sector.

He said the bank would consider participating in a new nuclear plant project in Lithuania and is assessing a possible investment in Rail Baltica, an EU-backed railway project to link the Baltic countries with Warsaw and Berlin.

Since 1993, the EIB has issued loans totaling nearly euro1.5 billion (US$2 billion) to Estonia, Latvia and Lithuania.

The European Investment Bank : http://www.eib.org

Hansabank Group : http://www.hansagroup.com

Baby left alone in car while parents shopped

Toronto - No charges are being laid against the parents of a 10-month-old who was left alone sleeping in a van on King Street.

The little girl was by herself for at least 30 minutes Monday afternoon while her parents went shopping.

Police say they waited for about half an hour before the baby's parents turned up. The couple told police they had done nothing wrong.

A Toronto police sergeant told CP24 that he can't understand how a parent would think this is okay.

"You cannot abandon a child under the age of 10 years - this child here was 10 months old. A 10-month-old baby girl left alone in a vehicle on the streets of Toronto ...just unbelievable," he said.

The parents are from Estonia and say that leaving a child unattended in a car is common. The couple says they are heading back to Estonia in a couple of days.

Both parents were taken to 52 Division, but no charges have been laid.

Estonia protests to Russia over flag-burning incident

dpa German Press Agency

Tallinn - The Estonian embassy in Moscow has handed Russia an official protest over a recent incident in which Russian protesters burned Estonian flags, officials confirmed on Wednesday. "We protested because the incident exceeded the generally- acknowledged limits of international practice, and we expressed the hope that such incidents will not be repeated," Estonian spokeswoman Ehtel Halliste told Deutsche Presse-Agentur dpa.

On Monday, around 40 representatives of the nationalist Young Russia youth group formed a picket outside the Moscow embassy. The picket protested a recent Estonian law outlawing the use of Nazi and Soviet symbols in the Baltic state.

During the protest, demonstrators hanged an effigy of an Estonian soldier in SS uniform, painted Estonian flags with swastikas and then set fire to them.

"We have nothing against it if pickets are organised in accordance with the laws of the host country. This time, such was not the case," Halliste said. Demonstrators also staged protests on Friday and Tuesday, but no flags were burned.