BONJOUR L'ESTONIE

Afghan president in Estonia

The President of Afghanistan, Hamid Karzai, begins a two-day official visit to Estonia today.

It will be his first visit to Estonia, upon the invitation of the Estonian president, Toomas Hendrik Ilves.

Karzai will also meet with Prime Minister Andrus Ansip and Speaker of Parliament Ene Ergma.

The meeting agenda will focus on bilateral cooperation and Afghanistan post-2014, when Afghan military and police forces take over responsibility for security from coalition forces. Estonia's second-to-last infantry unit to serve in Afghanistan will be deployed next month, ahead of the Estonian forces' April 2014 pullout.

Foreign Minister Urmas Paet visited Afghanistan earlier this month.

Estonia in the lead to win 2020 renewable energy race

Estonia is on track to become the first nation to meet the EU’s target of providing 20% of its final energy use from renewable sources, according to new Eurostat figures released on 26 April.

Across the continent, energies such as wind, solar and biomass contributed 13% of Europe’s total energy consumption in 2011, up 0.9% on the previous year. The highest shares of renewables were found in Sweden, Latvia, Finland and Austria but the EU has set countries different individual goals according to their circumstances, and only Estonia exceeded theirs. 

“It is always nice to be among the leaders,” said the Estonian Liberal MEP Kristiina Ojuland, speaking from her constituency in Eesti Reformierakond. “But I think that we were able to achieve this because of a very clear governmental policy and commitment to investments in the sector.”

“Also the Estonian people are mentally very open to renewable energy,” she added. “Being a small country it is easier to get something done when there is a political will.”

Since 2011, Estonia’s share of renewable energy has risen by two percentage points and currently stands at 14.9% of total consumption, according to the Tallinn-based grid operator Elering AS. This was largely down to increased biomass production, which has been criticized for its potential to increase carbon emissions. But wind output also rose by 23% due to three new wind parks.  

Another WWII soldier remains returned to Russia from Estonia

IVANGOROD — Remains of Affanasi Lenkov, a Russian soldier who died during the final stage of the World War II, was returned on Saturday to his homeland nation of Russia from Estonia, where he had “slept” for nearly 70 years.

The returning ceremony was held just two weeks before the Victory Day at Ivangorod, a small town in western Russia bordering with Estonia, during which Russian honor guards received ceremously the remains of Lenkov placed in a coffin from Estonian military representatives.

Remains of Lenkov was found at a grave discovered in the Sarremaa Island, Estonia, by an Estonian NGO named Otsing, which have been specializing on discovering undefined military graves.

With medals and orders which was found along with the remains in the grave, Otsing identified it as Srgt. Affanasi Lenkov who died during the bloody battle late November of 1944 when Soviet Army freed the island from the German troops.

Otsing found Lenkov, who was originally from Severodvinsk city of Russia, had no relatives by now, but would like follow the wish of Severodvinsk’s veterans organization to bury Lenkov at his hometownon of Severodvinsk on May 9, the V-day.

According to the information disclosed by the Otsing, more than 100,000 undefined soldiers graves may be located in the forest of northeastern Estonia and on the islands. In recent five years, Otsing has returned to homeland more than five soldiers’ remains discovered in Estonia.

Government approves state budget strategy for 2014–2017

The Government has approved the state budget strategy for the years 2014–2017 as well as the stability programme. During the next four years the Government will continue with a conservative budget policy, aiming to achieve a government sector budget surplus and to start restoring the reserves that decreased during the economic crisis.

According to predictions, the revenues in the state budget will increase in all four years compared to the last state budget strategy. The growth will result from increased tax revenues due to an improved economic situation and the predicted receipt of external funds.

The predicted total expenditure for the four-year period is 33 billion euros. This is 2.4 billion euros, or 7.9 per cent, more than the total size of the state budget strategy for the previous period. Compared to the previous state budget strategy, expenditure will increase by about five per cent annually in the 2014–2016 period.

An average of 1.2 mln internet purchases are made through banks in Estonia every month

Eesti Pank's statistics show that in the past 11 months, 1.2 million internet purchases have been made through Estonian banks, with a total turnover of 54 million euros, informs LETA.

Of these purchases, 4/5 were payments within Estonia made through a bank link service, accounting for 40 million euros in value. The average size of these payments was 42 euros.

Credit cards were used more over the internet for making payments for goods and services ordered from other countries. Credit card payments were made on average 235 thousand times a month for a total value of 15 million euros. Only one tenth of these payments were within Estonia. The average credit card payment was 64 euros.

Three methods are used for paying for internet purchases: card payments, internet bank payments through a bank link service, and wallet solutions like PayPal. Data from Statistics Estonia show that one in five Estonian residents used the internet for purchases in 2012. The number of purchasers using the internet in Estonia grew by 11% or 24 thousand during 2012.

Eesti Pank has been collecting and publishing statistics on internet purchases made through banks since May 2012.

Southern Europe’s recession threatens to spread north

FRANKFURT — No company symbolizes German industrial might like Daimler, the giant maker of Mercedes-Benz autos and trucks. So when the company said this week that it, too, had finally been caught in the downdraft of the European economic crisis, it was an ominous sign for all of the Continent, if not the whole world.

German exporters like Daimler have been bastions of stability on a continent burdened with shaky banks, dysfunctional governments and legions of unemployed youth — not to mention the worst auto industry slump in two decades. But Daimler’s glum forecast for 2013 was the latest evidence that Germany, and other relatively healthy countries like Austria and Finland, risk falling into the recession that has long afflicted their southern neighbors.

The slowdown in Germany was foreshadowed by months of declining industrial output, said Carl B. Weinberg, chief economist of High Frequency Economics in Valhalla, N.Y. “The E.U. has made Europe a much more cohesive economy, which is good when things are going up,” he said. “But when things are going down the multiplier is very strong. An outgoing tide lowers all ships.”

The Baltic States are becoming a very lucrative market for investors

Against the background of struggles with offshore companies, the Baltic States are becoming a very lucrative market for investors.

Alexander Zadvornov – head of the Estonian consultancy company, CMI Solutions – remarked that: “in particular, from this year in Latvia, corporate income derived from the sales of shares is no longer subject to income tax – with the exception of offshore companies. Moreover, from next year, dividends and royalties paid by foreign companies will also be exempt.”

He also drew attention to Estonia which, given its long-standing zero-rate of taxation on profits, remains an attractive investor destination on a par with Latvia.

He continued: “Generally speaking, as a buffer zone, the Baltic States are very attractive to investors from Russia and the CIS in terms of investment protection. Their location is also advantageous for export-import operations in Europe and beyond.”

The great interest of Russian investors in the Baltic States is evidenced by the success of the Latvian programme offering residence permits to foreign investors.

Bad Boys of Dance are back

TALLINN - After touring the world for five years, the “Bad Boys of Dance” will be coming to the Baltic States this May! Rasta Thomas’ “Rock the Ballet” is the dynamic, high energy dance show set to awesome music against a backdrop of fascinating video projected scenery. The show is created by husband and wife team Rasta Thomas - director, and Adrienne Canterna - choreographer.

Since 2008, “Rock the Ballet” has thrilled over one million spectators and has been performed in more than 20 countries worldwide. The show continues to receive rave reviews and standing ovations. “Rock the Ballet” features fantastic dancing to classic and up-to-the-minute pop and rock hits, from Kanye West to Coldplay to Michael Jackson and more. The choreography is brought to you by Adrienne Canterna, with her explosive mix of “Pop Ballet” styles. “Rock The Ballet fuses superb classical technique with fresh, modern dance styles, from Broadway to hip hop to acrobatics.

Thomas founded the “Bad Boys of Dance” in 2007. Based in Takoma Park, Maryland, it is one of two dance companies housed under the Echo Park Contemporary Ballet Center, managed by Cedric Tillman and Kenneth Rascher. Thomas chooses the dancers from competition, Broadway, and ballet backgrounds. “Rock the Ballet” is a “Bad Boys of Dance” show that incorporates jazz, hip hop, tap and gymnastics into its ballet elements.

Prisma Peremarket to open a new store in central Tallinn

Prisma Peremarket that belongs to Finnish SOK group has signed a contract to ope a new store in central Tallinn, writes Äripäev.

The new store will be located on the corner of Hobujaama and Ahtri street in the complex that will also include a bus terminal.
The company plans to invest about EUR 30m in the store.

Janne Lihavainen, CEO of Prisma Peremarket, says that the company has been looking for central location in Tallinn for some time and plans to start competing, among others, with the grocery unit of Tallinna Kaubamaja.

According to Lihavainen, it took about two years to sign the contract. Prisma opened its first store in Estonia in 2000. It employs more than 1,200 people in Estonia.

Toomas Hõbemägi

Work restrictions on foreign specialists to ease

TALLINN - The government approved on April 18 amendments to the Aliens Law and sent it to the Riigikogu; when the amendments come to force, it will be possible to hire a foreign specialist to work in Estonia after just a couple of days instead of the current regulations that make the wait last several months, reports Postimees. According to the agreement, a foreigner could stay in Estonia to permanently work in the country, and apply for a residence permit to do so while already being in Estonia.

To the proposal by the Foreign Ministry, an amendment to the Business Code was added, to enable foreign companies to open in Estonia branch offices that considerably facilitate the development of the Estonian economy. Currently it isn’t possible to register in the Business Registry a branch office that has one employee (manager) who doesn’t have a residence permit in Estonia.

Also, when a foreigner gets a short-term Estonian work visa, a visa with the same conditions is granted to his/her spouse and minor child and adult child if the latter isn’t capable coping independently due to health conditions or disability.

The easing concerns top level specialists who, according to the bill, are foreigners who have a professional preparation in any sphere. The bill also aims to change the part concerning foreign students to simplify starting doctoral, master’s degree or bachelor’s degrees studies in Estonia.
The draft law is supposed to come in force Sept. 1 next year if approved by parliament.

Nordea in Estonia earns 12 mln euros of profit in Q1

The Nordea bank earned 12 million euros of profits in Estonia in the first quarter of the year 2013 versus 12.8 million euros at the same time last year, LETA/Postimees Online reports.

The turnover of the bank fell from 20.1 million euros in the first quarter of last year to 19.2 million euros this year.

The revenues were affected most by fall of base interest rates and inadequate loan demand, said the bank's manager Vahur Kraft.

Nordea Estonia client deposits formed nearly 1.1 million euros at the end of March, a growth of 17% in a year.

The loan portfolio of the bank reached nearly 3.1 billion euros, of which leaisng portfolio forms 575 mln euros.

The loan loss allocations formed 0.02% of the portfolio.

ECB's Hansson warns against debt complacency

European Central Bank governing council member Ardo Hansson said on Wednesday that EU states must further push economic reforms, strengthen public finances and avoid complacency, sounding a warning note as some in Europe seek to ease austerity.

His comments came after the EU executive, the European Commission, has signalled an end to sharp spending cuts.

"There is always a concern that in periods that are more calm, a certain kind of complacency is generated or maybe it reduces the pressure to reform," Hansson, the head of the Estonia central bank, told a news conference.

"It is a reminder we are dealing with the fundamentals," added Hansson, who has said in the past that the debate about economic growth versus austerity is misplaced, given high budget deficits in Europe.

His views were echoed in a review of the small Baltic state by the Estonian central bank, which said that financial market stability had been partly restored late last year, but that worries could again arise. This could happen "if not all member states contribute sufficiently to implementing the European Union reforms or if they do not improve their own national fiscal position", the report said.

"For any potential banking crisis to be resolved quickly and effectively, it is necessary for public finances to be in good condition," the review added. Estonian total government debt in 2012 totalled 10.1 percent of gross domestic product, a fraction of the debt levels in many other euro zone states.

David Mardiste; Editing by Toby Chopra

Veterans' families are not alone : Ilves

A benefit dinner held by the Estonian president at the Seaplane Harbor on Monday evening raised 17,000 euros to support the education of the children of Estonian soldiers who have been killed or seriously wounded.

Estonia is today observing its first official Veterans Day.

The Carolin Illenzeer Fund is named after the daughter of Arre Illenzeer, a senior warrant officer who was killed in Operation Iraqi Freedom in 2004, ETV reported. Illenzeer only saw his daughter once, just after her birth, when he came to Estonia for vacation in the summer of 2004. The fund currently supports 45 children.

"[The fund] has a symbolic meaning. It shows the growing strength of Estonian civil society, that we care for and notice each other. Knowing that society cares for its soldiers and their families, knowing that if something happens no one will be left alone, that children will be helped to attain a good education - that gives security to those who have made defending Estonia their profession," said President Toomas Hendrik Ilves at the event.

Democrats to run with social dems for Tallinn council

Five independent MPs who call themselves the Democrats announced today that they will feature on the Social Democrat's list of candidates in Tallinn during the next local elections.

“We are not running against anyone, but only seek to end the monopoly of power [in Tallinn] and the Soviet-era party chain of command,” said Rainer Vakra, the head of the group, in a press release today.

Four of the independent MPs left the Center Party in protest a year ago after the fifth, MP Kalle Laanet, was expelled for criticizing the Center Party in the media.

The Democrats and the Social Democrats signed a memorandum in March to harmonize their activity in Parliament.

In addition to the five MPs, a few dozen other members of the Democrats, not formally a party but a nonprofit, will take part in the elections, set for October 20.

It would be nice if British hotels had British receptionists : Labour party

• Chris Bryant says employers are forced to hire Estonians and Latvians
• Says he is 'angry' about the lack of jobs in tourism for young Brits
• Row comes amid fears of an influx of Bulgarians and Romanians next year

Labour was today accused of peddling 'xenophobic rhetoric' after a senior frontbencher complained about receptionists in hotels being foreign. In controversial remarks, Labour’s shadow immigration minister Chris Bryant said it ‘would be nice’ to go into a hotel in this country which had a British receptionist. He said he was ‘angry’ at employers for failing to train and employ Brits, relying instead on people from Latvia and Estonia.

But the Tories said the comments were proof that Ed Miliband's party was 'confused' on the issue of immigration and was 'cynically' trying to grab headlines. Mr Bryant, the MP for Rhondda in south Wales, said local businesses had been unable to fill jobs with local people. ‘I have very high levels of youth unemployment in my constituency; it has risen by some 200 per cent in the last year,’ he told BBC2’s Newsnight.

‘I do get quite angry with some British employers, who’ve decided not to bother train British youngsters to work in the hospitality industry or the construction industry. ‘It would be nice sometimes when you go into a British hotel if the receptionist was British. ‘We need to give our young people to have the skills and the opportunities to get those jobs.

Tallink pays highest-ever dividends on Tallinn Stock Exchange

Estonian passenger ferry operator Tallink announced yesterday that it will pay out to shareholders almost EUR 33.5 million in dividends. This is the highest-ever dividend payment by a company listed on the Tallinn Stock Exchange, writes Äripäev.

The amount of dividends – 5 cents a share - that must first be approved by the shareholders at the general meeting of shareholders on May 14 came as a surprise for many analysts, most of whom expected the dividend to remain at 3 cents a share.

Infortar that is a holding company owned by Enn Pant, Kalev Järvelill and Ain Hanschmidt will earn EUR 12.06 million in dividends. Tallink’s largest private owner Enn Pant will in addition earn 0.4m euros in dividends.

Second largest shareholder Baltic Cruises Holding L.P will earn EUR 5.87 million.

Commenting the reasons behind the dividend proposal, Enn Pant, board member of Tallink says that last year was very good for Tallink and the first year when results were in line with expectations.

Estonian court upholds ban on teaching in Russian at municipal schools

TALLINN - The Tallinn District Court has rejected an appeal from the Tallinn and Narva governments, upholding the Russian-language teaching ban, the court said on Tuesday.

The Estonian government earlier ordered 15 municipal high schools in the cities to discontinue teaching in the Russian language. The order concerns schools regulated by the local governments.

The court ruled that improving the knowledge of Estonian among Russian speakers promotes the nation's solidarity. Thus, the number of people fluent in Estonian needs to increase. The ruling can be appealed in a higher court within one month.

Russian-language high schools (10-12 grades) gradually started teaching in Estonian on Sep. 1, 2007. This year, they are expected to bring the ratio of subjects taught in Russian and Estonian at Russian schools to 40-60. Estonia has 63 Russian-language schools.

The municipal governments of Tallinn and Narva, which have large Russian-speaking populations, have petitioned the government to allow 15 high schools to continue teaching in Russian, citing the Basic School and Upper Secondary School Act. Their petition was rejected.

Representatives of the Russian community express doubts that teaching Russian-speaking children in a non-native language will provide them with sufficient knowledge and skills for their further education or successful employment.

Finns spend record amount in Estonia

A recent survey commissioned by a Finnish merchants association finds that over 80 percent of Finnish tourists bought alcohol and 58 percent bought sweets while visiting in Estonia in 2012.

Last year, Finnish citizens spent 501 million euros in Estonia, a record that exceeded the 2011 figure by 8 percent, reported Finnish broadcaster YLE.

The merchants association says trips from Finland to Estonia are at a record-breaking high. Around 20 percent of southern Finns visited Estonia at least twice last year.

Half of the survey's respondents cited low prices as an important reason for undertaking the trip to Estonia. Often referred to as the 'vodka rally' by the Estonian media, nearly a quarter of all alcohol purchased locally by Finns is loaded onto vehicles and then ferried away to Finland.

Now, according to the survey, Finns have developed a sweet tooth as well, apparently due to a Finnish excise tax on sweets, ice cream and soft drinks. The association said there is a correlation between rises in the Finnish consumption tax and the volume of goods consumed in Estonia by Finns.

Estonia takes active part in exhibition TransRussia 2013

In an annual fair and conference TransRussia 2013 which takes place on April 23-26 in Moscow, Estonian presence has been especially wide this year, informed LETA, referring to the Estonian national broadcasting corporation ERR.

This year, a national stand and ten more separate stands of Estonia will be present at TransRussia.

A total of nearly 30 Estonian companies will take place in the marketplace event. This is the record number of Estonian enterprises – the participants of TransRussia – during several last years.

It is not a big surprise that the number of participants at TransRussia grows with every year, a company's BaltMarketConsult Board Member and the project TransRussia's Trustee Tatjana Eremina emphasized.

"The improvement of economic relationships between Estonia and Russia has been noted recently, and commodities' turnover between the states grows yearly. Current economic and political situation makes a good base for Estonian entrepreneurs to cooperate more with Russia's partners, the companies have more chances for attracting flows of traffic. In current situation Estonian companies have a possibility to fight for the right to handle the freight, because much depends on themselves and activities in Russia are unimaginable with participation in TransRussia. This is one of the aspects," said Eremina.

Mart Laar approved as next central bank chairman

Mart Laar was confirmed as the next supervisory board chairman of Estonia’s central bank after parliament swept aside criticism of the former prime minister by the opposition for refusing to quit his junior coalition party.

Lawmakers voted 46-34 with four abstentions today in the capital, Tallinn, to back Laar, 53, who’ll replace outgoing Jaan Mannik for a five-year term starting June 13, according to the parliament website.

Laar, Estonia’s first elected prime minister after the country regained independence in 1991, liberalized prices and began to sell off state assets in the Baltic nation. During his tenure, Estonia became the first country in eastern Europe to introduce a flat income tax in 1994. Laar, who resigned as defense minister last May after suffering a stroke three months earlier, returned to parliament in November.

“Mart Laar, who has withdrawn from party politics having twice served as prime minister of the Republic of Estonia and who was one of the chief architects of the economic reforms that laid the foundation for Estonia’s success, is a tough person with excellent willpower,” President Toomas Ilves said on April 9 when proposing Laar’s candidacy.

The country’s political opposition has criticized Laar’s nomination for threatening the central bank’s independence. Laar told the Postimees newspaper in an interview this month that he won’t quit Isamaa ja Res Publica Liit, saying his only link with the party is limited to serving as its honorary chairman.

Ott Ummelas