BONJOUR L'ESTONIE

Estonian retail sales up 5% in a year

According to Statistics Estonia, in July 2013 compared to July of the previous year, the retail sales of goods of retail trade enterprises increased 5% at constant prices.

In July 2013, the retail sales of goods of retail trade enterprises were 416.7 million euros, which was almost 324 euros per inhabitant.

The retail sales in stores selling manufactured goods increased 10% compared to July 2012.

Retail sales in grocery stores have been rather stable during the recent months. In July, the retail sales of these stores increased 4% compared to July of the previous year.

Toomas Hõbemägi

Outside of Tallinn, still a void in campaign agenda

Despite the abundance of posters with talking heads telling passerby to vote for them, most parties and election coalitions have yet to roll out their plans of action if voted into office.

With three weeks to go before the local government elections, outside of the capital, parties have not made much of an effort to explain their plans, said Annika Uudelepp, the head of Praxis, a think tank, while speaking on an evening TV program two days ago.

Following up on the claim, ETV looked south of Tallinn, examining the situation in 22 Tartu County municipalities yesterday. Indeed, the Social Democrats had only disclosed five local programs, the Reform Party two and IRL one, on their websites. The Center Party, meanwhile, only offered its national program, with no locally tailored agenda in the whole county.

Responding to journalists over the lack of information available to voters, party representatives said that plans are still in the works. At the same time, the outdoor campaign ad period ended over a week ago already.

Estonia submitted a claim against EU bookkeeping directive

Estonia submitted this week a claim to the European Court of Justice to declare some provisions of the EU bookkeeping directive null and void, LETA/Postimees Online reports.

The directive regulates how the financial year reports are compiled, setting different requirements for companies of different sizes. The initial aim of the directive was to reduce the administrative burden of smaller companies and increase comparability of financial reporting. Estonia estimates that neither aim is being fulfilled and as the result of implementing the directive, the transparency of our economic room and competitiveness of companies would decrease.

"Estonia has created a comfortable e-reporting system with which we have considerably simplified submitting data. The directive thus, for us, contradicts itself, since it enforces extra reporting for banks and the state," said finance minister Jürgen Ligi.

"The activities of entrepreneurs would be harder since there are no comparable economic results in comfortable electronic environment in order to choose partners or get loans. Non-transparency increases risks, increases the price of loans and reduces access to financing," said Ligi.

Estonia wants to dispute thus the disproportional restriction of the directive according to which extra supplements to business year reports submitted via the Business Registry entrepreneurship portal's e-reporting environment can be demanded from small companies only with the aim of collecting taxes. Micro- and small companies form 98% of all companies in Estonia and 54% of sales revenue of all companies. The second provision that Estonia disputes is the one according to which a member state can give up content comparability of annual reports.

Metrojet starts flights between Estonia, Latvia and Egypt

Estonian travel agency GoAdventure announced that it will launch cooperation with Asian carrier Metrojet and at first, flights to Egypt will be launched, LETA/Postimees Online reports.

GoAdventure's CEO Marina Moks said that flights take place three times a week from Tallinn to Hurghada and Sharm el-Sheikh. "We will launch flights to Egypt as soon as possible," she said.

Moks explained that the Metrojet base will be located in Estonia – planes will be stationed here and here crew changes take place. "We want to increase the number of routes and develop them, meaning that while others, for example Estonian Air, are closing their routes, we are trying to open them, since planes should be in the air not in the parking lot," she said.

Metrojet starts at the same time with Estonia also flights from Latvia.

Economy ministry draws up a wish list of grand projects

The Ministry of Economic Affairs has compiled a list of projects, costing a total of 2.5 billion euros, that could be co-funded by the EU during the next budget period between 2014 and 2020.

The projects include a four-lane Tallinn-Tartu highway, tram lines to Lasnamäe, bridges for Saaremaa and Pärnu, and a rail connection with Haapsalu, but not the Rail Baltic tracks, as that will be funded from separate sources, Postimees reported today.

The ministry itself has admitted that only 0.5 billion euros is available and they must place priorities.

The daily said that the difference between the requests and the available funds is fivefold, and that some of the projects, like the restored rail line to Haapsalu, would be difficult to prioritize. The list had a few omissions, such as the state purchase of ferries between the islands and mainland, Postimees said.  

Estonian mobile handsets rise in August

A total of 37,113 mobile handsets were sold in Estonia in August, according to a study from GfK Retail & Technology, up from 35,069 units in July.

Mobile operator Elisa reported that devices from Samsung led the bestsellers' list in its shops in August.

The Samsung Galaxy Trend smartphone and the Samsung Galaxy Tab2 tablet topped the list. Devices from Sony followed, with the Xperia V smartphone and the Tablet Z at the top.

Center Party petitions European Human Rights Court over E-voting

The Center Party has asked the European Court of Human Rights to evaluate the e-voting system used in the 2011 parliamentary elections in Estonia.

“In the opinion of the Center Party, the current legal regulation and system of e-voting go against the Constitution of Estonia. The system has large security risks. The lack of transparency of the electronic voting system undermines election results and also trustworthiness of public power,” the party's secretary general, Priit Toobal, said in a press release on Thursday.

He said they have asked the court to inspect data included in their petition, and to evaluate the legality of e-voting.

Civil service shrinks for fifth straight year

The number of civil servants in Estonia has shrunk every year since 2008, according to the civil service's freshly released yearbook.

A total of 27,072 public servants were employed last year, down from 27,369 pen-pushers in 2011. This year's number is even smaller, having dropped by 6,000 to 8,000 due to new civil service reform. Of the 2012 number, 22,043 were in central government and 5,029 in local government.

The figure stood at 30,003 in 2007. According to the Ministry of Finance, the number of full-time jobs (or equivalent) in the public sector was 138,000, an increase of 2,200 from the year before.

Public sector workers account for 22 percent of the country's total employment. That level has remained constant. Agencies and institutions in the Interior Ministry's jurisdiction had 31 percent of the total, with the Defence Ministry and Justice Ministry's areas of government coming next with 16 and 14 percent, respectively.

Tallinn had 30 percent of the country's local government officials.

Estonian Labour Inspection suspends work in dozens construction sites

The Estonian Labour Inspection (ELI) held a pan-Estonian inspection of construction sites on Tuesday and suspended work in dozens of sites due to dangerous violations, LETA/Public Broadcasting reports.

21 labour inspectors conducted 83 inspections and ascertained 181 violations of legal acts, 47 of which were so dangerous that work had to be suspended or use of dangerous tools banned.

In 34 cases, work connected to danger of falling from heights was suspended. The inspectors also ascertained lack of required restrooms or accommodation areas in 17 cases.

The ELI said that no violations were found in just 14 construction companies construction sites. Last year, 351 work-related accidents took place in the construction sphere in Estonia, of which 3 ended in death and 94 in serious health damage.

Sharing their love of Estonian music

WATERLOO — Symphony conductor Norman Reintamm was in Estonia in 1991, the night Soviet tanks rolled into the city of Tallinn. His only thought was, "are we going to be a free Estonia or are we going to be shipped to Siberia?"

Reintamm, now a member of the Canadian-based Trio Estonia which performs in Waterloo Friday, lived through the tumultuous time in Estonia under Soviet rule. He reflects on it as an enriching part of his life both musically and socially. And luckily, when he awoke the next morning, the tanks were gone and Estonia was finally independent.

Reintamm's parents came to Canada from Estonia after the Second World War, raising their family in Hamilton, where he began his musical career as a chorister at Christ's Church Cathedral. He completed an undergraduate degree in music from the University of Toronto and McMaster University. He then went on to postgraduate work at the Royal College of Music in London, England, followed by awards and apprenticeships with the Vancouver Chamber Choir and the Hamilton Philharmonic Orchestra.

It would have been a giant leap for the young Canadian to launch his professional career in Estonia where he would be faced with great deprivation and even danger. Reintamm's father had suggested he audition for the Estonian National Opera, thinking his son would have more opportunities to gain experience. But it would also open the young man's eye to the privilege life he had grown up in.

Estonia has 40 super-rich people

There are 40 super-rich people living in Estonia in 2013, the value of whose assets together is 4 billion dollars, which has fallen by almost a fifth in a year, LETA/Postimees Online reports.

According to the fresh report of analysis centre Wealth-X and Swiss bank UBS, there are 40 people living in Estonia whose asset net value (assets minus obligations) is at least 30 million dollars.

A year ago, there were also 40 superrich people in Estonia but their asset value totalled 5 billion dollars.

The Wealth-X and UBS World Ultra Wealth report that has just come out says Asia will create more super rich individuals than both the US and Europe over the next five years. In about 15 years, the wealth of the Asian ultra high networth individuals will outstrip the combined riches of the European billionaires and millionaires. And by 2024, Asia will be home to more super rich people than even the US. Little wonder, every luxury marketer is trying to understand the mindset of the Asian super rich.

Blue "Super Segway" scooter

An Estonian company, Stigo, made a name for itself at the ‘1000 pioneers changing the world’ event in Paris, where it presented an ultra-portable, eco-friendly scooter.

In two seconds, the Stigo Bike folds down to dimensions of 45x40cm. With a total weight of 17kg, the scooter can be carried around relatively easily.

Powered by a 250W electric motor, the scooter has a top speed of 25km/h and a range of 40km per charge. Its frame is made of aluminium and equipped with 12-inch wheels.

The result of several years of research and development, the Stigo Bike is available for pre-order at the price of €2,370 (RM10,310), including a two-year warranty. The first 200 bikes are slated for delivery in the summer of 2014, and Stigo aims to produce a total of 8,000 units by 2015. ― AFP/Relaxnews

Tallinn proposes to introduce free passenger train service

Tallinn City Government is proposing to expand the free public transport service in Tallinn by adding passenger train service since second half of October, reported ERR. The bill to introduce free passenger train service on lines operated by Elektriraudtee, the state-owned electric rail operator, within Tallinn boundaries known as Zone 1 for residents of Tallinn will be discussed today.

According to the bill, Tallinn City Government and Elektriraudtee will sign a contract under which City of Tallinn will pay Elektriraudtee EUR 375,000 in compensation for fare cost. Residents of Tallinn will be able to travel free on the passenger rail system in Tallinn by using the same fare card as the one used for free public transport.

Commenting the proposal, representatives of the Tallinn City Government say that, as a result of introducing free public transport, many residents of Tallinn who until now travelled by train switched to buses, trolleybuses and trams.

„In order to improve integration of Tallinn public transport system and the rail passenger service, to give passengers more options and to reduce the burden on public transport, it is necessary now to introduce free rail passenger service on Elektriraudtee in Tallinn,” said the explanatory letter to the bill.

Toomas Hõbemägi

2007 malpractice case closed, verdict finalized

The Supreme Court today rejected an appeal by Carmen Heinväli, a Pärnu doctor convicted of criminal negligence over a 2007 incident in which a baby was born with a permanent disability. 

Heinväli, who was an on-duty physician in the case in question, was handed a one-year suspended sentence in February. As the Supreme Court has now rejected her appeal, that sentence will go into effect.

She was found guilty of failing to correctly evaluate the course of a patient's labor, as a result of which the health of both the mother and the newborn were severely harmed.
The court also awarded the victim civil damages totaling 23,330 euros, which Pärnu Hospital must pay.

Heinväli was originally convicted in 2010, given an eight-month suspended sentence and ordered to pay around 1,500 euros in fines. But she was not stripped of her license to practice medicine and civil damages were also dismissed.

The verdict was upheld by the district court in June, 2010, but the Supreme Court ordered a retrial in November 2010, saying that the Pärnu County Court and a district court had used the findings of a forensic medicine report that lacked certain criteria required by law, such as an evaluation of the examination results and a statement of grounds for the experts' opinion.

Heinväli maintains her innocence.

Ilves attends Soros wedding

TALLINN - Estonian President Toomas Hendrik Ilves attended the wedding of billionaire and philanthropist George Soros on Sept. 21 near New York, reports Ohtuleht. The private wedding ceremony of the 83-year-old George Soros and 42-year-old Tamiko Bolton was followed by a festive reception in the Caramoor music and art center, where around 500 guests had been invited, among them World Bank President Jim Yong Kim, and also several heads of state.

“George Soros, who via the Open Estonia Foundation, has supported the development of the Estonian citizens society for a long time, sent President Ilves as the head of state and his wife an invitation to his wedding,” said the president’s chancellery PR manager Piret Pert. “Since George Soros has been a founder of the Estonian modern art center, President Ilves gave him as a present a work of Mall Nukke.” President Ilves and George Soros have met several times in recent years.

President Ilves started a working visit to the USA on Sept. 19 with the main focus the UN General Assembly.

Former Swedbank Group CFO employed by LHV

Erkki Raasuke who is former chief financial officer of the Swedbank Group and adviser to Estonian Minister of Economic Affairs has joined Estonian-owned banking group LHV Group as board member, writes Äripäev.

Raasuke worked at Swedbank from 1994, most recently as chief financial office of the Swedbank Group in Stockholm. When he resigned in 2011, he agreed with his former employer that he will not work in banking for two years.

Raasuke’s most recent employment was to work as adviser to Juhan Parts, Minister of Economic Affairs, in 2012-2013.

Commenting his decision to join LHV, Raasuke said that he was impressed by the group’s team.

Q: Did you receive any other offers than from LHV?
A: I will not discuss it, but there were offers. I have recently held several discussions on the issue.

Q: When did you decide in favour of LHV?
A: At the end of August.

Government signs off on 2014 Budget

The Estonian Cabinet has signed the 2014 state budget bill, with Prime Minister Andrus Ansip set to hand it over to Parliament tomorrow at 14:00.As reported when the Cabinet reached an agreement last Thursday, expenditure will grow 4.9 percent, to 8.06 billion euros, with allocations by area of governance increasing more or less across the board. Revenues will grow 4.3 percent, reaching 8 billion euros, reported uudised.err.ee.

Thanks to higher-than-expected tax receipts, tax revenue will increase 6.5 percent, while other revenues are set to decrease by 8.3 percent due to a lower level of external resources. Tax burden will decrease by 0.3 percent to 32.1 percent, the lowest in six years, and public sector debt will be at 10 percent of GDP at the end of next year.

The government has planned for a nominal deficit of 0.4 percent and at the same time a structural surplus - leaving out cyclical, one-off and temporary factors - of 0.7 percent. One reason for the nominal deficit was a one-time increase of Estonian Air's share capital.

The salary fund will rise in all areas of governance by 5.1 percent, leaving ministers to allocate resources on an as-needed basis. Some areas may receive more generous salary raises as a result of reforms. For instance, structural reforms will allow the teachers' minimum wage to be raised by at least 12 percent, from the present 715 euros to 800 euros per month.

Estonian economy to grow by 4% in 2014

Estonia could achieve economic growth of four per cent next year, according to Eesti Pank president Ardo Hansson. The country's central bank leader was speaking at the Ariplaan business conference today (September 25th) and suggested that the Baltic state will buck the wider eurozone trend of ailing economies.

According to the bank's forecasts, the euro area will achieve gross domestic product contraction this year and growth of just 1.1 per cent in 2014. Mr Hansson believes that Estonia will experience stronger expansion. "We cannot expect the pre-boom rate but if expectations are realistic, we can manage. Estonia has potential to grow faster than the rest of the euro area," he stated.

Mr Hansson noted that Estonia is exposed to the wider economic issues occurring globally, but expects that the effects of the global financial crisis will continue to ease throughout the course of 2014.

The Eesti Pank chief said that the eurozone is no longer the centre of the crisis, as question marks remain around the US' monetary stimulus and its economic performance. HD FestForest provides forest management in Estonia, Latvia and Lithuania and is a subsidiary company of HedeDanmark. 

Estonian employers : pay issue remains acute

Paavo Heil, CEO of CV Keskus, a job portal, says that employers should pay employees higher wages and offer better terms than the market average because it is a major competitive advantage in the long run, writes Äripäev.

“This allows to create better services or products and charge a higher price for them. In today’s Estonia, this is one of the few and most secure ways to increase productivity,” he said, speaking at the Pay Forum hosted by Äripäev. Heil also suggested that companies should hire good professionals also when they don’t have a specific job to offer at the moment.

“If you find a person who is suitable to work in your enterprises, hire him or her even if you don’t have a vacant job at the moment. You can create it and sell the employee’s resource on the market with a profit,” he said. Sami Seppänen, CEO of Elisa Eesti, said that Estonia’s advantage is flexibility in wage issues.

“The wage market is being shaped by the ratio between real offers and demand. This means that wages are determined not by trade unions, but according to the demand and supply situation, in market economy,” said Seppänen.

Toomas Hõbemägi

Russia approves border treaty agreement

The Russian government has approved a proposed border treaty agreement with Estonia last week and a bill is awaiting signing by the Russian president.In order to take effect, the agreement must also be signed by the Estonian and Russian foreign ministers and ratified on a parliamentary level, reported rus.err.ee.

"The process is finally in the final stretch and the signing of the agreement is no longer in the distance," Marko Mihkelson, chairman of the Estonian Parliament's Foreign Affairs Committee, told ERR.

On the Estonian side, the bill was approved by the Cabinet in May.

Negotiations on the treaty had broken down in 2005 and were re-launched last year. The Foreign Ministry recently announced that bilateral consultations had been successful and that a new plan would add two clauses to the original document, stipulating that the treaty regulates solely the path of the border and ruling out territorial claims.