BONJOUR L'ESTONIE

Land tax exemption passes final reading

The bill exempting homeowners, as opposed to property investors, from the land tax, was finally passed in Parliament after its second reading had dragged on for three sessions.

The amendment to Land Tax Act - exempting 0.15 hectares of land in settled areas and 2 hectares in the open countryside from the tax - was passed 54 to 39, with the divide running more or less along the power distribution line between the governing Reform-IRL coalition and the opposition.

Attempting to filibuster the second reading at all costs, the opposition disagreed with what it saw to be a political move to drain local governments of their revenue. Although the coalition made a pledge to compensate for the loss of local revenue ensuing from the exemption, the mechanism was not included in the draft act itself.

The land tax has been the only nationwide tax that does not create revenue for the national budget but for municipalities alone. Prime Minister Andrus Ansip has proposed making up the lost revenue, an estimated 10 to 14 million euros per year, by increasing the share of income tax allotted to the local governments, which was, despite much criticism from the opposition, cut down during the recession years. Currently, 11.4 percent of the income tax goes to the local governments.

The Centre Party-run city of Tallinn, whose land tax rates were considered to be abusively high and were allegedly the main cause prompting IRL and the Reform Party to come up with the exemption bill, is bound to enforce a similar exemption a year before the national law comes into force in 2013, having submitted a corresponding motion to the City Council last week.

Erkki Sivonen

Attache haunted by Nazi-related article from past

An opinion article written years ago has been dug from the past, raising questions about the recently appointed cultural attache to Estonia's embassy in Berlin, Harry Liivrand.

A notable Estonian columnist, Andrei Hvostov, believes that Liivrand is not fit for the job because he justified, as a newspaper arts editor in a 2005 article, the controversial actions of British prince Harry, who had sported Nazi paraphernalia at a costume party. Liivrand had, in sarcastic terms, depicted the media's handling of the matter as an overreaction.

At the time, the German press did not take the matter lightly, Hvostov wrote, concluding that British youth do not have any respect because "more than half of the British youth are completely in the dark over the meaning of the word 'Auschwitz.'"

Hvostov said Liivrand's freedom of speech as a writer should be respected, but that he is not appropriate as an official representative of Estonia.

"[Such actions] would threaten [Estonia] as the target of unavoidable attacks," said Hvostov, adding that it could fuel the spreading of misinformation by anti-Estonia propaganda channels and foreign politicians who accuse Estonia of ostensible Nazi tendencies. "[Liivrand's attitude] shows at best that he is a very immature person. At best," said Hvostov.

Excerpts from the 2005 Article by Harry Liivrand

(Not an official translation)

Tallinn women to leg it in stiletto race

Not to be outdone by Riga's blonde parade, Tallinn will be staging its own bit of Baltic-style, pre-feminist silliness on June 16 in the form of a 100-meter foot race by women wearing 8-centimeter heels.

The Stilettojooks (Stiletto Race), a celebration of spring, women's legs, footwear and humankind's never-ending capacity to think up strange things to do, is taking place for the fifth time this year.

“With the fifth Stilettojooks race we ring in the season of open shoes and miniskirts. The aim of the race is to promote beautiful women's legs and the wearing of high-heeled shoes,” said event organizer Silvi Grigorjeva.

The event takes place on Kaarli puiestee at 19:00. Participation is free, and on-site registration is allowed.

Would-be drag racers should note that the rules clearly stipulate that participants must be women, though rus.err.ee pointed out that four of those already registered are indeed male. Heels have to be at least 8 centimeters high (there is no upper limit), and the runners must be at least 18 years of age.

The day's festivities will also include a photo session contest for the most beautiful legs, with the winner, along with the three runners with the fastest time, set to receive prizes.

Steve Roman

EC launches search for European Green Capital 2014

Will your city be the next European Green Capital? Today the search to find the city that will inherit the prestigious title in 2014 begins. Four cities – Stockholm, Hamburg, Vitoria-Gasteiz and Nantes – have been awarded the title so far, from 2010 to 2013 respectively.

The European Green Capital Award recognizes and rewards cities that are at the forefront of environmentally-friendly urban living and which can act as role-models to inspire other cities. The annual award is intended to help European cities become more attractive and healthy places – “fit for life”, the EC press service announced.

Commissioner Potočnik said: “The European Green Capital Award is a powerful incentive to help convince local authorities that sustainable urban development is the key to a successful future. I am looking forward to receiving new applications from all over Europe showing how investing in environmental protection can be combined with economic growth and improved wellbeing.

Today all cities across Europe with more than 200,000 inhabitants can apply for the title of European Green Capital 2014. The award is open to EU Member States, Candidate Countries (Turkey, FYROM, Croatia, Montenegro and Iceland) and European Economic Area countries (Iceland, Norway and Liechtenstein). In countries where there is no city with more than 200,000 inhabitants, the largest city is eligible to apply.

More follows
The three key aims of the award are to:
- Reward cities that have a well-established record of achieving high environmental objectives,
- Encourage cities to commit to ambitious goals for future environmental improvement and sustainable development, and
- Provide a role model to inspire other cities and promote best practices and experiences in all other European cities.

Heritage Board sets sail to find ancient ships

This summer, the National Heritage Board will hunt ancient shipwrecked sailboats with the help of an underwater robot and sonar.

Historical relics lying on the seafloor have been less explored in Estonia than the castle walls and spiritual groves on dry land, reported the newspaper Meie Maa. Sea-based cultural heritage structures were placed under protection in 1999, but work to preserve them has only been underway for about five years.

The National Heritage Board is most interested in finding archaic ships, not those that were sunk during the world wars.

The agency will comb the country's western coast, off of the islands, following the leads of historical sources and the accounts of fishermen who have found mysterious remains from their nets.

One specific sailboat, thought to be 300 years old and of unknown origin, is said to lie somewhere off the coast of the island of Ruhnu, according to a ship captain, who, whilst trawling some years ago, reeled in a wooden cannon carriage.

Ott Tammik

Even Russia has two presidential candidates : Tarand

European Parliament member Indrek Tarand said yesterday he agreed to run for the presidency of Estonia to strengthen democracy, writes ERR.

“Personally I don’t like elections with one candidate. Even Russia has two candidates for the president,” Tarand said in an interview to Radio Kuku.

Tarand said that he fully opposed PM Andrus Ansip who says that one-candidate elections are democracy and two-candidate elections are simulation of democracy.

The MEP added that he has always been opposing deals made in the back offices of parties away from the public.

According to Tarand, he was approached by Aivar Riisalu, an MP for Centre Party who asked him whether he would be interested in setting up his candidacy. Centre Party will discuss the issue at its meeting on Saturday and has invited Tarand to speak there.

Toomas Hõbemägi

Estonia emerging as bullish Baltic nation

TALLINN - Estonia is no longer Europe's best kept secret, with increasing GDP growth, record numbers of tourists and a commitment to renewable energies and eco developments. The smallest of the Baltic countries is certainly making its presence felt.

According to Statistics Estonia, the government agency of the Ministry of Finance, Estonia's GDP has increased by an impressive 8 percent in Q1 2011 compared to the same quarter last year, seeing exports of goods rise by 53 percent with most of the value added growth attributed to manufacturing. Moreover, the Organization for Economic Cooperation and Development (OECD) suggests that Estonia's economy may develop further with a 5.9 percent increase this year.

Alan Forsyth, director of property investment experts, Property Secrets, which markets investment opportunities in Estonia comments,

"Estonia certainly has placed itself on the global investment radar," said Alan Forsyth, director of property investment experts for Property Secrets, which markets investment opportunities in Estonia.  "As well as the welcomed boost in GDP, the National Tourist Board recently announced that Estonia has seen a 41 percent increase in the number of UK visitors with a record number welcomed in Q1 2011.

"Additionally, more than 259,000 tourists stayed in hotels and other forms of accommodation between January and March this year, a 19 percent rise compared to the same time last year which could well be attributed to the fact that Tallinn, Estonia's capital city, has been voted European Capital of Culture 2011 as well as low cost airline EasyJet recently introducing flights to the Estonian capital from Liverpool making it easier to visit the Baltic country."

Eurozone buying gold, not selling it

HERE's a turn up.

Eurozone central banks have stopped selling and started Buying Gold so far in 2011.

Only by €6 million mind you, and all of it in coin according to the European Central Bank's weekly statements. But this net Gold Buying still stands, even ignoring Estonia's 0.6 tonne purchase at New Year (its contribution, on joining the Euro, to the ECB's reserve assets).

New-member stockpiles and data adjustments aside, it's the first net rise since the single currency was launched in 1999.

Just shy of 180 kilos by our maths here at BullionVault (that's 5774 troy ounces in old money), this year's small addition-to-date to the Eurosystem's gold bullion holdings barely registers against the 1,937 tonnes of sales over the previous 12 years.

It's also a drop-in-the-bucket compared to the Eurozone's joint spending on Greek, Irish and Portuguese bail-outs too, let alone the ECB's swollen balance-sheet. But it confounds those "rumors of rumors" of European central banks selling gold here in 2011 to help fund the next round of Eurozone rescues.

"Where there is rumored smoke," reckoned Dennis Gartman of the eponymous $5000-a-year newsletter at the start of June, "there can be actual fire." Whereas in fact, where there's a genuine crisis, central banks are loathe to sell – as the Bank of Italy proved in summer 2009 (and under the leadership of the ECB's likely new chief Mario Draghi too).

It's when everything looks just fine that central banks sell. Because "Who needs gold when we've got Alan Greenspan?" as the New York Times asked in 1999.

Let's recap...

Adrian Ash

Estonian Air made a loss of 2.6 million euros in 2010

Shareholders of national carrier Estonian Air that is majority owned by the Estonian state approved the airlines annual accounts.

According to the report, the airline ended last year with a loss of 2.6 million euros (41 mln kroons), up from a loss of 4.4 million euros in 2009.

The company said in comment that despite many unforeseen events such as Iceland ash cloud and the bankruptcy of Top Tours, the airline was able to finish 2010 with the smallest loss in recent years.

“Last few years have been very challenging in aviation. Global economic recession, natural disasters and high oil price have had a negative impact on financial performance. Considering the challenging environment, Estonian Air results could be seen acceptable,” says Tero Taskila, the CEO and President of Estonian Air.

Toomas Hõbemägi

Swedish banks outsource all ATMs

Sweden’s four biggest banks -- Handelsbanken, Nordea, SEB and Swedbank – have announced that by the end of 2011 they will transfer ownership of their ATMs to a separate company. Bankernas Automatbolag will operate the cash machines on their behalf.

This idea follows similar progress in Finland, where all bank ATMs have been operated by a outsourcing organisation since the mid-1990s. Also Danske Bank will make the move.

“If Finland was the pioneer of this type of ATM pooling, it may well be that Sweden is the catalyst for similar initiatives elsewhere”, ATM Marketplace writes in an analysis over the Nordic scheme, adding that there is also significant potential in larger countries.

"While it is unlikely that large ATM markets will go down the road of a single unified network (this has not happened in Sweden yet), there is significant potential for two or more banks to pool their ATM fleets in numerous countries".

Johan Nylander

Tallinn TV will reach all Estonian homes

Estonian culture minister granted on Monday the controversial Tallinn Television an operating permit with free access to providing nationwide television services, LETA/National Broadcasting reports.

Culture Minister Rein Lang said that Tallinn Television is worth for the whole of Estonia to see how Tallinn uses taxpayers’ money.

Tallinn Television has to show at least 14 hours of programme a day and 98 hours a week and besides shows on life in Tallinn, it has to include programmes for young people and children, documentaries, movies, including Estonian documentaries and movies.

Tallinna TV, the television station launched by the city government of Estonia’s capital, started regular broadcasts at the beginning of this year. The city government launched plans of having its own TV channel in 2008 already, claiming that they need an alternative to government-controlled media.

National Broadcasting says that Tallinn TV is most likely the only Estonian media product, closing of which has been demanded as a citizens initiative. Namely thousands of city residents have launched a campaign to close the TV station that has doubtful quality and channel the money for renovating kindergartens. Thousands of signatures have been collected on the internet and thousands joined the corresponding Facebook campaign.

The city needs 1.9 million EUR a year to finance the TV station. The amount allocated for renovation of kindergartens is ten times smaller.

The operating permit last till June 2014.

Juhan Tere

Voyages of Discovery launches "Summer 2012" cruise collection

FORT LAUDERDALE - Voyages of Discovery North America, serving the niche small ship cruising market, launched its exciting new Summer 2012 brochure showcasing its extraordinary collection of 7-to-29 night itineraries. During the season, the 650-guest Discovery will visit a record number of 25 new ports! In addition, Voyages of Discovery unveiled a series of cruise videos that capture the essence of each new itinerary. The new videos and brochure can be accessed by visiting www.voyagesofdiscovery.com.

Beginning in May 2012, Discovery will sail from her London area home ports of Portsmouth and Harwich in England to visit a myriad of spectacular new destinations in the British Isles, Northern Europe and the Baltic. These include the historic ports of Ijmuiden (Netherlands); Port of Tyne, Greenwich, Dover, and Fowey (England); Galway (Ireland); Cherbourg and Dunkirk (France), Heligoland and Sassnitz/Rügen Island (Germany); Szczecin (Poland); Saaremaa (Estonia); Grundarfjördur (Iceland); and Bodø, Kirkenes, Hammerfest, and Florø (Norway).

In September and October, 2012 Discovery will cruise to the Mediterranean and the Black Sea departing from London (Harwich), Barcelona, Dubrovnik, and Istanbul. Itinerary highlights include maiden calls to the picturesque ports of Sète (France); Rapallo, Castellammare di Stabia, and Brindisi (Italy); Pula (Croatia); Kotor (Montenegro); Itea (Greece); and Dikili (Turkey).

Discovery's new Summer 2012 season offers guests an opportunity to visit awe-inspiring destinations and "hidden gems" rarely visited by other cruise lines. The Spitsbergen and the North Cape cruise includes a three day exploration of the wild, untamed nature around Spitsbergen -- a one-of-a-kind experience.

Rally Estonia to bring 6000 tourists and at least one million euros to South Estonia

The big international motor sports event Rally Estonia, taking place from 15-16 July on the roads of South Estonia, will bring to Estonia at least 70 foreign contestants from 13 different countries, accompanied by 6 000 foreign tourists.

Enterprise Estonia, partner and supporter of the rally, estimates that the international rally will attract a large number of tourists to the site, located several hundred kilometres from the capital. According to Tarmo Mutso, the Director of the Estonian Tourist Board of Enterprise Estonia, the accommodation establishments of South Estonia will be able to sell an additional 20,000 room nights thanks to Rally Estonia. "Thus, foreign visitors to the rally will leave at least EUR 1 million with Estonian entrepreneurs," Mutso emphasised.

Enterprise Estonia is supporting Rally Estonia from the resources of the European Regional Development Fund. According to the Director of the Estonian Tourist Board, Rally Estonia is an important project both for the local area as well as from the point of view of the objectives of the tourism strategy of Estonia. "It is through attractive projects of this type that we can increase the competitiveness of Estonia as a tourism destination compared to our closest neighbours. A professionally organised international motor sports event contributes to a positive image of Estonia", said Tarmo Mutso.

For the European rally fan, Estonia, with its high-level rally event, is an attractive tourism destination next to Finland. All thanks to the gravel roads of Otepää, the technically demanding and long special stages, as well as a price level for food, entertainment, and accommodation ranking below the European average.

There will be a dozen WRC cars at the start of the two-day rally event, and the combined length of stages will be 167 km.

MEP's sponsored car wins Tallinn-Monte Carlo race

The electric car sponsored by MEP's Kristiina Ojuland and Gesine Meissner has won the Tallinn-Monte Carlo rally.

The marathon began on July 2 in the capital of Estonia and crossed most of the Nordic countries and central Europe.

During the race, drivers had to adhere to traffic laws and were awarded points for finishing each stage at the right time. Points were deducted for each minute they arrived early or late.

Although 16 cars started the marathon in Tallinn, only three managed to finish the race. Ojuland participated in the first and last stage of the rally.

According to Joel Hirv, Ojuland's spokesperson, the Alliance of Liberals and Democrats of the European Parliament supported the participation of the rally team by covering the participation fee. "Because we have had a number of other environmental and sustainable transport promoting projects, [supporting the rally team] was a locigal step," Hirv told uudised.err.ee.

All of the proceeds from the rally will go to a fund established by Prince Albert II of Monaco, which will provide aid for environmental projects related to groundwater in Estonia, said Hirv.

Ingrid Teesalu

E-stonia strikes again, wins 1st place

An Estonian-produced financial reports filing system won first place in the category of government services at the World Summit Award, an infotechnological innovations competition.

Two other Estonian creations reached the finals, having faced 460 contenders from 160 countries. Another 71 projects took part in the Estonia's national qualification round alone.

"All in all, we can say that the Estonian star burns brightly on the international stage," said Katri Ristal, a representative for the World Summit Award. "Many innovations such as the online tax agency and the e-elections already seem self-explanatory to us, but the majority of the world is still far behind our level of information and communication technology."

The Company Registration Portal was developed by the Center of Registers and Information Systems, a Ministry of Justice agency. The website, according to the Ministry of Justice, has taken the whole business of presenting their earnings and data online, allowing for instant and transparent reports. While also curbing the number of errors made in documents, the service cuts bureaucracy and administrative burden, according to agency director Mehis Sihvart.

The ministry has also seen a growing trend in early filings. In 2009, a third of companies gave out their annual financial reports within three days of the deadline; in 2011, the figure fell to less than a quarter.

Estonian Post notes increase in Post Office parcel collections

Estonian Post said that the number of parcels collected from post offices has increased by 40% since last autumn with many customers actually preferring to receive e-commerce items via a post office. The operator now allows parcels to be sent to any designated post office.

Head of the Postal Services Division, Jaan Vainult, said:

"Customers can choose from among 350 post offices. People are no longer linked to one particular post office.

"Where at one time parcels were automatically sent to the post office nearest the recipient´s residential address, it is now possible to order the parcel according customer´s choice - at a post office anywhere in Estonia."

One improvement has been access, with 60 new post offices opening in the shops and supermarkets, many with longer opening hours - ideal for customers unable to get to a post office in time due to working commitments.

"The volume of C2C parcels has increased in recent years due to the growth in the sending of second-hand items and the sale of children’s goods and cosmetics via the internet", added Vainult.

Debt crisis cools Baltic enthusiasm for euro

Latvia and Lithuania are becoming less enthusiastic about following Baltic neighbor Estonia into the euro area, potentially delaying the next expansion of the common currency beyond 2014.

Lithuanian central bank Governor Vitas Vasiliauskas said last week that the government’s goal of adopting the euro in three years is “not something to kill yourself over.” His Latvian counterpart, Ilmars Rimsevics, said that the currency shouldn’t be introduced “at any price.”

Lithuania, which in 2006 became the only nation rejected for euro adoption, and Latvia have pledged to follow Estonia, which introduced the currency this year. The rhetoric is changing and timetables may be pushed back as the euro region grapples with its sovereign debt crisis.

“There’s been a change in tone, no more talk about the targets,” said Jekaterina Rojaka, an economist at DnB Nord in Vilnius, Lithuania’s capital. “We hope that these changes won’t have an impact on budget planning. When the euro isn’t an immediate target, there’s less incentive to cut the deficit.”

Lithuania’s government should decide when to adopt the euro only after meeting all the necessary criteria because the situation in the currency union may change, Finance Minister Ingrida Simonyte said last month. “The costs and benefits of being in the euro zone now look somewhat different to what they seemed a few years ago,” Simonyte told Ziniu Radijas on May 23. “I’m not sure how much of these costs are acceptable to us.”

June deportation cattle car and lorry to be displayed on Freedom Square

Stenbock House - On Tuesday 14 June, the day marking the 70th anniversary of the June 1941 deportations, Freedom Square in Tallinn will be the venue for an open-air exhibition including a cattle car and a GAZ AAA lorry of the same type used in the deportations. The exhibition will commemorate the more than 10,000 victims of the red terror who at the time were forced to abandon their homes and were taken to Siberia.

The cattle car for narrow-gauge railway tracks is from the Lavassaare Railway Museum in Pärnu County. This is a typical example of a railway car from the period, used to deliver deportees to transhipment stations where the people would be moved into bigger cattle cars for wide-gauge railway tracks going to Siberia. The cattle car will be displayed on Freedom Square on a section of railway track specially brought in for the occasion.

The GAZ AAA lorry, manufactured in 1938 at the Gorky Car Factory in the Soviet Union, was kindly loaned to the exhibition by Mr. Raivo Raju, a collector and restorer of old machinery. In such lorries, hurried along by guards brandishing rifles, the deportees were removed from their homes, usually being given only 20 minutes to pack their things.

The exhibition on Freedom Square will include detailed information placards in Estonian, English, Russian and German, containing photographs and descriptions of the tragic events of 70 years ago. On the same day a new exhibition at the Museum of Occupations dedicated to the same topic will be opened to further educate the general public. School pupils and young people in general are especially welcome, as their view of these events is reflected through a prism of multiple generations.

Estonia has condemned the crimes of all anti-human regimes. On 14 June 1941 the violent deportation of over 10,000 people from Estonia to Siberia took place, with many deportees succumbing to the inhumanely difficult labour conditions, hunger and diseases during their first few years of resettlement and imprisonment.

Estonian Golf and Country Club welcomes rock legend Rick Wakeman

The rolling green fairways of the Estonian Golf & Country Club will once again welcome rock legend Rick Wakeman when he returns for his second Golf Classic at the renowned Tallinnvenue.

The European Tour-designed course will host the former Yes rocker and his 80 guests as they compete over the Sea Course - ranked in the Top 100 European Golf Courses - in aid of children's charity SPARKS on Saturday, June 18.

Following the event Wakeman and his band will entertain guests into the night with a concert at the Tallink Spa and Conference Hotel located in the middle of beautiful Tallinn.

Estonian Golf & Country Club - the only European Tour course in Eastern Europe - will provide the perfect setting for those competing as The Sea Course winds its way through forests before opening out alongside the Gulf of Finland and the Jägala River, enjoying stunning views across the gulf.

"I have had the real honour of visiting Estonia at the height of summer and the height of winter, and in both cases I found Tallinn and the surrounding countryside absolutely beautiful," said Rick.

"I first saw the golf course when it was completely enveloped with snow, but when I saw it at the start of the season I simply fell in love with it. It is beautifully designed and a great test of golf for all standards of player. It's certainly a course I would, and indeed have, highly recommended to friends to go and play, and to spend time in Tallinn itself."

Eurocommisioner Kallas doesn’t consider Tallinn-Helsinki undersea tunnel a realistic alternative

European Union Transport Commissioner Siim Kallas doesn’t consider building a Tallinn-Helsinki undersea tunnel a realistic alternative, LETA/Postimees Online reports.

Kallas said that building an undersea tunnel between Tallinn and Helsinki would be astronomically expensive, Kaleva writes.

A tunnel in the bottom of the Gulf of Finland has been proposed as a part of the Rail Baltica line that will connect Baltic States with Poland in the future.

Kallas said that the railway project is progressing well despite the economic difficulties of the Baltic States.

Juhan Tere