BONJOUR L'ESTONIE

Major activities and resolutions of the government in 2009

At the session of government today, State Secretary Heiki Loot presented an overview of the fulfilment of the government´s action programme in 2009. The action programme outlines major activities undertaken in 2009 for the achievement of the goals and promises provided in the programme. The government continued work towards the achievement of the goals in the fields of population and family policy, economic and budgetary policy, education and science policy, social and health policy, etc., in a total of 19 fields.

The aim of the government in the implementation of the population and family policy is to achieve a positive birth rate for the population of Estonia. As a positive trend, the birth rate figures have been improving year by year.

The government has continued work towards the adoption of the Euro. For this, in 2009, the budget position of the government has been improved by 9 per cent of GDP.

In February 2009, the government launched a package of measures for improving access to capital for Estonian companies, the total amount of which is EEK 6.1 billion.

For the improved operation of the labour market and increasing of flexibility, the new Employment Contracts Act was adopted. For the completion of the reform of private law, the Riigikogu also adopted the Law of Succession Act and the Family Law Act.

Two-headed calf born in Tartu

A two-headed calf has been born at a farm in the eastern Estonian city of Tartu, the EER news portal has said.

The animal has three eyes, two mouths and two noses.

The calf was not named, as there is little chance that it would survive.

In the past, the birth of a two-headed calf was seen by Estonians as a war omen. The farm’s owner says, however, that the birth of the animal was a good sign, meaning that the economic crisis would soon be over.

Multi-headed creatures are born from time to time in various parts of the world. The condition, which is quite rare, is known as polycephaly. It occurs as a result of a process, similar to that of conjoined twins – a parasitic twin joins the skull of a fully developed embryo.

Football supporters optimistic about victory over Estonia

Luanda - Angolan supporters are optimistic about a good performance of the national football squad in Wednesday's friendly against Estonia, in Portugal, ahead of the country’s participation in the African Nations Cup (CAN-2010) that Angola will host on January 10-31, ANGOP has learnt.

Januário Pedro, a civil servant, considers that the national squad will beat Estonia, in Angola’s penultimate preparation game, before facing Gambia to close this training programme.

On his turn, the journalist Moisés Silva said the players will play better than in the previous games, because at this time everyone fights for a place in the initial team.

He added that the Angolan squad are technically superior to Estonia’s and that the players coached by the Portuguese Manuel José will beat their opponents, even with some difficulty.

Estonia rated as top economic reformer

Estonia has achieved a high ranking in a global list of top economic and political reformers.

In a survey of 128 countries by the non-profit, pro-democracy Bertelsmann Foundation, Estonia was ranked fourth while Latvia came 13th, the Baltic Times (BT) reports.

The study measured the state of democracy and the market economy in each surveyed nation, in addition to the quality of the political scene, the news provider said.

Estonia also achieved third place in the management index part of the study, outranked only by Uruguay and Chile, BT added.

The news will serve as a further boost to investment in Estonia. Last week, the Estonia Free Press reported that the Baltic state had reduced its external debt this year as exports of goods and services exceeded imports.

Last week also saw the passing of the European Union (EU) Services Directive. The directive will enable further integration with EU economic policy as service providers in Estonia will now be able to offer their services to customers in other EU countries, Baltic Business News said.

Estonia on verge of expanding gambling economy

Eastern European countries are having a tough time in this global economic meltdown. So many countries in that region of the continent are looking to establish new sources of revenue.

Relaxed laws regarding gambling in Estonia have created a new found and very popular past time for those people who love to gamble. This new economy has created an international base of clients that are providing revenues and jobs. The Estonian economy is reportedly down as much as 36% and residents in every sector of the country are feeling the devastating effects.

This trend is slowly being rectified by government efforts to stimulate business in many parts of Eastern Europe. This progressive country is notably proactive in its attempts to turn a bad situation into a good one. Stability is on it's way with Estonia being the next country to adopt the Euro as it's currency. This move is sure to bring more trade and more jobs as the Estonian people will be able to compete more effectively on a global scale.

GILD Bankers investigated for fraud

TALLINN — The Estonian Office of the Prosecutor General announced Monday that it is investigating the GILD Bankers investment bank for a fraudulent real estate development in Azerbaijan worth 250 million krooni (€16 million).

GILD Bankers is a pan-Baltic investment bank headquartered in Tallinn. In 2007, 24 Estonian debenture investors bought bonds worth 250 million krooni, which was to be invested into the real estate development at Shirvan region near Baku where 900 luxury houses were planned to be constructed. The project was planned to be carried out in five years and the total cost was estimated 400 million krooni (€25 million).

The investigation started in November and one person, Estonian business man and rally driver Erki Piirsalu who does not work for GILD Bankers has been interrogated in suspicion of committing an investment fraud. The prosecutor’s office is revealing little else.

Revenge : government may freeze income tax transfers to City of Tallinn

Finance minister Jürgen Ligi says that if the City of Tallinn goes ahead with its plan to borrow 357 million kroons in 2010, the state may freeze income tax transfers to Tallinn.

Minister of economic affairs Juhan Parts  said at a government press conference today that the government may take strong measures such as freezing the income tax transfers to the City of Tallinn if the latter does not cut its borrowing plan.

"The laws have requirements including loan requirements. If they are not met, the government must have levers to sanction or motivate," said Parts in comment to the government's view on the city's borrowing spree.

By the Rural and Urban Municipality Budget Act, the loan burden of a local government cannot exceed 60% of its net income. However, if the City of Tallinn implements its borrowing plan in full volume, it would exceed the 60% limit.

Tallinn plans to borrow 357 million kroons in 2010 and pay back 233 million kroon. The net debt burden would be 124 million kroons.

Parts said that he hoped that the Social Democrats who are now on power in Tallinn City Council would help to solve the standoff. He added that it was regrettable that the relations between the government and Estonia's largest local government are so tense. "This is not normal if the state and Estonia's largest town cannot find agreement on long-term solutions," said Parts.

Toomas Hõbemägi

Latvia and Estonia agree on joint renting of premises for diplomatic representations in Arab Republic of Egypt

From 1 January 2010 onwards, the representations of Latvia and Estonia in the Arab Republic of Egypt will work in jointly rented facilities, thus optimising their administrative costs.

The agreement to this effect was reached between Foreign Minister Maris Riekstins and the Foreign Minister of Estonia Urmas Paet during his official visit to Riga on 18 February this year, and finalised in the following consultations between the Foreign Ministries.

"This initiative is a prime example for the Baltic states co-operation in the implementation of similar projects also in future, in view of the chairmanship of the Baltic Council of Ministers that Latvia is to assume in 2010.

The Embassy of Latvia in Kairo has been operational since 2007; it was officially opened in March 2009 during the visit to Egypt by Foreign Minister Maris Riekstins. From 2010 onwards, the representation of Estonia in Egypt will also start its work in premises rented jointly with Latvia.

Latvia is represented in the Arab Republic of Egypt by Ambassador Maris Selga.

Estonia’s regional projects to get 443 million kroons from 2009 to 2012

The Government adopted the local municipality investments support plan for the years 2009-2012 with the total volume of 443 million kroons, writes Postimees Online/LETA. According to the Ministry of Internal Affairs, the investments support plan this time has 39 projects.

Minister of regional affairs Siim Kiisler stated that the EU funds are of great help in improving the living environment in regions while the activities also contribute to invigorating the economy.

From 2009 to 2012, the plan will grant a total of 195 million kroons to support 11 schools, 111 million kroons to 11 primary schools and 22 million kroons to 3 social welfare objects. 14 cultural and entertainment objects were supported by a total of 114 million kroons.

From the year 2007 to 2013 Estonia will get a total of more than six billion kroons from the European Regional Development Fund for its regional development programmes. From this amount, nearly 2.25 billion kroons have been meant for developing public services in municipalities.

Juhan Tere

Estonia next to adopt euro

Estonia is set to become the next country to adopt the euro, an event set to happen on January 1, 2011, a European Commission report states.

Following the euro’s introduction, every country that joins the EU is legally obliged to introduce the euro, and 4 new members – Slovenia, Malta, Cyprus and Slovakia – have already done so. Only the member states that chose not to join the euro area at its inception, namely the UK, Denmark and Sweden, are not obliged to ditch their national currency.

Estonia was the first of the new member states to unveil its euro coin designs, in December 2004, and originally planned to adopt the Euro in 2007, together with Slovenia. However, it did not formally apply when the central European country did, and changed its target date to January 1, 2008, eventually postponing it by a further 3 years.

A National Changeover Committee is coordinating preparations for the adoption of the euro, while the Finance Ministry has drafted a comprehensive legislative act providing an overview of the legislation being amended to allow for the changeover.

A dual-pricing period is set to start on July 1, 2010, and last for an entire year, and a 14-day period of dual circulation of the euro and the current national currency, the kroon, is being proposed.

Kroon cash deposits can be exchanged for euros at no cost between December 1, 2010, and July 1 in the following year. Subsequently, the country’s central bank, Eesti Pank, will exchange unlimited amounts of kroons into euro for an unlimited period of time.

ATMs should be distributing only euro banknotes within 48 hours of euro adoption.

Petrol prices to go up

Higher excise duty and Tallinn sales tax will increase retail price of petrol and diesel fuel sold in Estonia will go up in 2010.

The higher excise duty on motor fuel that will enter into force from January 1 and the liquid fuel storage fee will add 0.48 cents a litre to petrol and 0.47 cents a litre to the price of diesel fuel, said fuel retailer Statoil.

In addition, the 1% sales tax that the City of Tallinn plans to introduce from 1 July 2010, would increase the price of motor fuel by  another 15 to 20 cents a litre. According to Statoil, since taxes make up about 60% of the retail price of motor fuel, the increase will be passed on to the consumers.

Statoil says that it expects sales of diesel fuel to suffer from the fact that Estonia will have the highest excise duty for diesel fuel among neighbouring countries.

Fuel retail price increase also in 2009 because of another rise in fuel excise duties and raise in VAT rate from 18 to 20%.

In November, BBN reported that, according to Indrek Kaju, managing director of large fuel retailer Neste Eesti, the upcoming rise in fuel excise duty will lead to a drastic drop in fuel consumption in Estonia. Among others, Kaju said that the growing price of diesel means that most international road carriers will fill up outside Estonia.

Kaju said international road carriers are openly avoiding to fill up in countries where diesel is expensive. Since trucks can take up to 1,000 litres of diesel on board, it could be a significant loss to Estonian fuel retailers. He said that Lithuania was forced to lower its fuel excise duty to that of Poland in 2009 as a result of such boycott from international road carriers who started to buy fuel from Poland.

According to the new law on increasing excise duty on fuel adopted in November, the price of petrol will go up by around 3% and diesel fuel around 2.9% starting from January 2010.

Toomas Hõbemägi

Estonia : All soldiers will eat the same !

The Estonian Defense Ministry said on Tuesday it had decided to scrap the practice of supplying soldiers over 190 cms in height with additional food.

Tallinn - The ministry explained in its statement that the reduction would help the army to save some 30,000 euros (about $43,200) annually. It also said that expert analysis had proven that the usual supplies were sufficient for soldiers of all heights.

Estonia was badly hit by the global economic crisis this year, even forcing the Baltic state to sell the residence of its ambassador in London due to budget cuts.

The former Soviet republic is providing up to 170 troops in support of units of the British 19th Infantry Brigade in the Helmand Province of southern Afghanistan as part of the International Security Assistance Force (ISAF).

Six Estonian troops have died and 30 have been injured in Afghanistan since the start of NATO operations in the country in 2001.

Harry Egipt's commercials anthology on DVD format is now on sale

The anthology includes commercials mostly produced for Soviet Estonian market but also for Soviet Russian, Soviet Ukrainian and Soviet Moldavian markets in the eighties. Many of these films have not actually been seen as they never reached the screen.  Amongst others it contains the commercial "Luxury Goods", not allowed to be shown on TV. The picture and the sound have been digitally restored from the originals, some of which were thought lost. Also included are about 100 comments voiced by the people who participated in the production of the films as well as some prominent Estonians.

- The anthology includes 84 commercials, authored and directed by Harry Egipt.
- The films are supplemented by 46 interspersed comments.
- Includes 24 page booklet.
- The films have English subtitles.

 

 

Item total: € 16.00
Postage and packing: € 4.00
Total: € 20.00 EUR
 

The first commercials were produced in Estonia 41 years ago. Eesti Reklaamfilm (Estonian Commercial  Film Producers), the company that produced more than 300 short films per year in its most prolific period, was a major Soviet commercials producer. Most of the commercials made over the decades by Eesti Reklaamfilm have, however, been lost, except for the films directed by Harry Egipt. Harry Egipt's commercials are very important in the history of Estonian advertising film, they are historical documents as well as teaching aids. "Dad`s films show the Eighties as carefree and cheerful," says Hanno Egipt, adding that English translation will make them easier to understand for a wider audience.

Harry Egipt's commercials won first awards at five consecutive advertising film festivals at Türi. In 1990 Harry Egipt's anti-smoking commercial "Young Smoker" was chosen as one of the three best films at the advertising film festival in Moscow. "Young Smoker" was also represented at the Cannes International Advertising Film Festival in 1991. In addition, clips from Harry Egipt`s films have found their way to Twentieth Century Fox's production of Borat: Cultural Learnings of America for Make Benefit Glorious Nation of Kazakhstan.

For most part Harry Egipt's film projects can be considered a one-man show since he is the author, the director and the producer. He did the casting, and handpicked the crew. His work is characterized by an utterly unique, the co-called Egiptean style, which uses innovative ideas, fast editing, original music and gorgeous models.

Publicity

2001-08-19 : Carmen Kass : I'm the richest girl in Estonia

As far as Communist dissenters go, Carmen Kass has a better figure than Lech Walesa and has been on more Vogue covers than Vaclav Havel. But when she added her voice to 300,000 others in Estonia's ''Singing Revolution,'' and joined hands across three countries in the ''Baltic Chain,'' she became part of the resistance that led to freedom for her homeland.

As far as revolutions go, Estonia's was polite. But had it involved intrigue and cursing and prodigious vodka consumption, Kass could have been an important part of that, too. Had it been fought on cell phones, as the recipients of her spicy diatribes could attest, she could have been a valuable insurgent. And had it been an arms race, she could have been a valuable asset. She is, as she likes to say, the richest girl in Estonia.

Kass is famous in the modeling trade for making that intentionally ironic declaration after she's had a few; for her flashy watch, which, as anyone who's ever waited for her knows, doesn't work; and for actually driving herself across Europe to modeling jobs. (As Michael Kors smirks, ''She must drink a strong cup of joe!'') Several times a night, Kass makes a liar of P.G. Wodehouse, who once said, ''Speak civilly to blondes and they will speak civilly to you.''

Half of Tallinn nightclubs do not meet fire safety requirements

The North Estonia rescue service says that, of 14 randomly chosen nightclubs in Tallinn, six were lacking in fire safety.

ERR reported that the inspection carried on December 11 showed that in three cases emergency exit routes were blocked, in two establishments fire exits were closed and one had insufficient evacuation lighting.

In two cases, fire alarm system was not functioning properly, two nightclubs did not have a sufficient number of fire extinguishers while in four cases fire extinguishers were not checked as required.

Ants Raava from the rescue services says that the inspectors will carry out repeat checks in the establishments that were found to have insufficient fire safety in six months.

When will we learn ?

Toomas Hõbemägi

"Creative Metropoles"

Eleven capital and metropolitan cities of Europe have joined their forces to further foster the development of their creative sectors.

The project CREATIVE METROPOLES is spearheaded by the culture and business development professionals from Amsterdam, Barcelona, Berlin, Birmingham (in partnership with Wolverhampton), Helsinki, Oslo, Riga, Stockholm, Tallinn, Vilnius and Warsaw, and has received 2.44 M EUR funding from the INTERREG IVC programme in an effort to make public support systems and instruments more focused, effective and better tailored to the actual needs of the creative industries. After project launch in the end of the year 2008, project representatives have carried out large scale research on the existing policies in support of Creative Industries and in 2009 city representatives have participated in numerous events presenting the project, case studies and giving input in discussions on Creative Industries, as well as organized the first experience exchange event in Warsaw. Project will run until September 2011.

You can read the newsletter here:

In our next Newsletter (issued this year) we will inform on the results of research carried out in all 11 cities on the existent support mechanism for CI, as well as planned activities in year 2010. Stay tuned!

To read more on the CREATIVE METROPOLES project or subscribe for the Newsletter, please visit the project website http://www.creativemetropoles.eu/

Economic policy statement of Eesti Pank

Risks to financial stability have eased. The pace of the economic downturn in Estonia has been slowing since the second quarter, as expected. At the same time, the value of goods and services exports has remained at the level that formed after the steep fall in global trade in November 2008. According to Eesti Pank's autumn forecast, Estonia's GDP will decline 14% in 2009.

Slides to the presentation (pdf, 106 kb)
Summary of the Financial Stability Review 2/2009

Consumer prices have been lowering since summer, by an average of 0.2% a month, and Estonia met the Maastricht inflation criterion in November. From now on, the dynamics of inflation will mostly depend on the fluctuation of oil prices in the global market and on tax amendments in Estonia.

The collection of tax revenue is in line with the autumn forecast. The government has set a firm goal of keeping the consolidated budget deficit below 3% of GDP. The impact of the steps taken in the first half-year to improve the budgetary position is becoming increasingly apparent - the central government's income has been markedly larger than expenditure in recent months. Budget revenues will increase even more in the last months of the year, owing to dividends from state-owned companies and other owner income. Looking further ahead, the budgetary position will be further improved by the government's decision to raise excise duties in 2010.

SEB, Swedbank have foreclosed 500 homes this year

The number of homes foreclosed by the two largest banks SEB and Swedbank in Estonia has doubled this year.

ERR reports with reference to Eesti Päevaleht that in addition to 500 homes foreclosed by bailiffs on the request of Swedbank and SEB, also other smaller banks have tens of apartments and houses on their hands.

Priit Perens, CEO of Swedbank Estonia, says that the trend is growing and expects the number of foreclosures to increase further next year. "While the percentage of overdue business loan repayments seems to have stabilised, defaults of private loans continue to increase, mainly because of unemployment growth.

According to Perens, the big question is the period of high unemployment. "Our practice shows that borrowers who have received a grace period for their loan principal or interest payments have overcome their problems relatively well. However, this will change if unemployment grows and becomes a long-term problem."

In a related story, unemployment insurance fund announced that registered unemployment is now at 13.3%. Last week 1,467 new unemployment were registered. Registered unemployment in Ida-Virumaa on Northeast Estonia is 19.2%, followed by 18% in Võrumaa and 16.6% in Valgamaa. The figure in Jõgeva and Tartu county was 10.1%. By December 23, the number of registered unemployed amounted to 87,239 people out of the total employable population of 656,200.

Who can foresee the day when we will get back on top ... ?

Toomas Hõbemägi

Harju Elekter has posted the biggest growth at Tallinn bourse in 2009

Just like other developing markets, the Tallinn Stock Exchange has offered good money-making opportunities this year while Harju Elekter has boosted the property of its owners most, Postimees Online/LETA reports. Bourse index OMX Tallinn has gained by nearly a half from the beginning of the year, 45.92%.

Harju Elekter has been the best performing share. 1,000 kroons invested in the company a year ago have more than doubled into 2,070 kroons, a growth of 107%.

Owners of Tallinna Kaubamaja and Merko Ehitus can also be happy, their property has grown over 70% since the beginning of the year and 1,000 kroons have become 1,730.

The biggest loser at the Tallinn bourse this year has been Baltika, as its shares have fallen by 45% since the beginning of the year. Analysts say that the company’s situation continues to be difficult but it has exited the liquidity crisis of the beginning of the year. The risk is still considered high.

Real estate developer Arco Vara, which ended last year with a more 1 bln kroons loss and experienced a short price rally at the end of summer, has fallen by more than a fifth since the beginning of the year.

Juhan Tere