FREE GEOPOLITICAL NEWSLETTER

estonia

For current reports go to EASY FINDER

ESTONIA


 



In-depth Business Intelligence 

Key Economic Data 
 
  2003 2002 2001 Ranking(2003)
GDP
Millions of US $ 8,383 6,413 5,500 95
         
GNI per capita
 US $ 3,870 4,130 3,870 72
Ranking is given out of 208 nations - (data from the World Bank)

Books on Estonia

REPUBLICAN REFERENCE

Area (sq.km) 
45,226 

Population
1,341,664

Principal 
ethnic groups 
Estonians 63.9%
Russians 29%
Ukrainians 2.7%

Capital 
Tallinn

Currency 
Kroon

President 
Arnold Rüütel


Update No: 305 - (30/05/06)

Estonia Votes to Ratify Stalled Draft Constitution
Estonia has once again shown its impeccable European credentials. Its lawmakers on May 10th ratified the European Union's draft constitution, a document whose approval has largely stalled elsewhere after French and Dutch voters rejected it.
The charter, which aims to strengthen Europe's influence on the world stage by creating the post of an EU foreign minister, easily won approval from lawmakers in Estonia, one of the 10 countries that joined the bloc in 2004. There 73 votes in favour in the 101-seat parliament.
Estonia is the 15th of the 25 EU members to approve the document, which is unlikely to come into force anytime soon. Many members put ratification plans on hold after French and Dutch voters rejected the draft last year amid unease over the bloc's course.
Finland is also expected to ratify the text, designed to streamline EU institutions and improve decision-making in the enlarged 25-member bloc, in the next few weeks.
The EU constitutional treaty has to be endorsed by all 25 members of the enlarged bloc before it comes into force. Of the 14 states that have finished the parliamentary stage of ratification, 12 have also gone the last step by signing the instruments of ratification.
Two countries, Spain and Luxembourg, have held successful referendums. Other countries that have promised voters a chance to have their say on the constitution as part of the ratification procedure include two of the most Eurosceptic member states, Denmark and the UK.

Ending the impasse
The European Commission is to adopt a paper containing its own suggestions for ending the impasse. Among other things, it will suggest boosting EU-wide co-operation in the fight against terrorism, in order to show citizens that Europe can help solve problems central to citizens' lives.
The EU is divided between countries that think the constitution can be revived in something like its original form, and those that think it is dead. Leaders agreed in June last year on a "period of reflection" to help soothe tensions.
The debate due at a summit in Brussels this June will be the first serious attempt to discuss possible next steps. Most observers expect little progress to be made resolving these differences until Germany takes over the rotating presidency of the EU, in the first half of 2007. 
Angela Merkel will be the key figure here. She has so far been an outstanding success in her new job. To rescue the EU constitution would be the greatest achievement possible for a German chancellor. It would probably need a new French president, better at galvanizing the people than Chirac. 

President met with Presidents of Ukraine and Georgia
The summit in Lithuania in early May was a decisive event for all concerned. It was made memorable by the presence of Dick Cheney who used the occasion to blast Moscow and Minsk for their retrograde governments. A new mini-Cold War is perhaps in the offing.
In Vilnius, Estonian President Arnold Ruutel met with President Victor Yushchenko of Ukraine and President Mikhail Saakashvili of Georgia. They discussed cooperation between their countries. The leaders spoke about Estonia's support of Ukraine's Euro-Atlantic ambitions, Ukrainian-Georgian relations, energy and economic policies and regional security issues. Yushchenko said "we are interested to use Estonia's experience to join European organizations." 
Yushchenko and Ruutel agreed to re-establish an interstate commission in order to activate a bilateral dialogue and particularly improve economic relations. Yushchenko thanked his counterpart for supporting the Ukrainian diaspora in Estonia and helping Ukraine to join the European Union. 

Ansip says it's time for Ruutel to go
Ruutel's tenure of his job, however, is under question; and this is so from an august source. There is a presidential election later in the year. Ruutel, an outsider who won in 2001, is certainly vulnerable and may not even stand.
Prime Minister Andrus Ansip took a bold political step at the end of April when he said Estonia needed a change of president. Speaking at the Reform Party's general meeting on April 29, Ansip acknowledged the performance of incumbent President Ruutel but said that the country needed someone younger as head of state. He added that nobody could "diminish Ruutel's role as president insofar as Estonia is now a member of the European Union and NATO."
Estonia has a particular cult of youth. Its main leaders after independence were all in their twenties and thirties. This was a policy pursued vigorously by then president Lennart Meri, himself in his sixties. He wanted the new generation brought up under Gorbachev to take over, convinced that the older generations were too stuck in a Soviet mind-set.
There is something to be said for having a dignified older person in the presidency, as in Latvia and Lithuania, and many other countries. The concept of the Elder Statesman is not necessarily a bad one after all. 

                                                 ******

The following is a local analysis of the coming race:-
Ilves versus Savisaar in presidential poll?
Apr 19, 2006
By Kairi Kurm
The presidential jockeying is reaching full stride in Estonia. According to polls, most residents would like to see Social Democrat and European Parliament member Toomas Hendrik Ilves as the next head of state. At the same time, the third most favoured choice is a person whose name isn't even on any party list - the ubiquitous leader of the Centre Party, Edgar Savisaar. 
Meanwhile the incumbent, Arnold Ruutel, the second most popular choice, has yet to announce whether he will run for a second term. His candidacy has only been put forward by the People's Union, while right-wing parties and the Social Democrats are desperate to grant Estonia a new president. 

NEWS ANALYSIS
The People's Union believes Ruutel still has until the end of summer to decide. Lea Kiivit, secretary general of the People's Union, told Eesti Paevaleht that it was unfathomable why Ruutel, who turns 78 next month, should be under pressure to make up his mind.
"People with better political memory know that Lennart Meri informed the public in 1996 about his decision to run for the second term only in mid-August," she said.
Ruutel did, however, provide some clarity when he hinted that he had no intention of running in the parliamentary round. And if lawmakers prove unable to elect a president, there will be another round via an electoral college. Ruutel said he had not yet decided whether he would enter the race at that point. 
At the same time, the president, speaking to students at Tartu University's Narva College, pointed to his age as one reservation. "I have lived quite a few years. It is nice when representatives of the younger generation are nominated and have the chance to be elected [in Parliament]," Ruutel said.
The favourite candidate, Ilves, argued that there was no sense in holding a debate if a candidate's decision to participate was not clear. He said parties should think about Estonia's image rather than try to outwit each other.
"Since, at the end of local government elections, the head of People's Union Villu Reiljan said they had the necessary electoral votes, then their aim is probably to torpedo the elections in Parliament," said Ilves.
In accordance with the Constitution, the president of the Republic shall be elected by Parliament, but if the legislature fails to grant two-thirds of the votes (i.e., 68 votes) for one candidate, the chairman of the Riigikogu (Estonia's parliament) must convene an electoral body - comprised of members of the Riigikogu and representatives of the local government councils - to elect the president within one month. This is precisely how Ruutel, an outsider in 2001, came to power. And top Estonian politicians do not want history to repeat itself. 

White horse 
Savisaar, who is minister of economy and communications, has so far not announced whether he will run in the presidential elections. "When Lennart Meri was asked whether he would run for a second term, he said he would reply to the question 24 hours before the elections, and no sooner," Savisaar told the daily Postimees. 
Still, if Ruutel should decide not to put forth his candidacy, support for Savisaar would likely rise. A poll carried out by the daily Eesti Paevaleht shows that Savisaar would receive 14 per cent and Ilves 6 per cent of the pro-Ruutel vote. According to the same poll, 35 per cent of respondents would back Ilves, 24 per cent Ruutel and 11 per cent Savisaar. "I don't know what happens if Ruutel should decide to step down," Savisaar confessed to Eesti Paevaleht. "But I know what happens if we both run at the same time. In this case, our votes will disperse mutually, and a third candidate would cut through the two of us nicely - just like a knife through butter. In this sense, running at the same time is neither useful for me, nor him." 
Estonians support Ilves for his language and communication skills, which would enable him to better represent Estonia in the international spotlight. Savisaar, however, believes these qualities are not important for a future president. In his words, the main tasks of the president are "to maintain the nation's confidence, state power and the president's institution. I have seen one president whose support was very strong all over the world. It was Mikhail Gorbachev, who was friends with Bush, Chirac and other heads of nations, but who, at the same time, drop by drop, lost the credit of his country until he was left without any faith." 
"Then he became King Lear, who was walking on an empty beach with no one to rely on. For this reason, I do not take the argument that we need a president for the outside world seriously," Savisaar said. 
The main difference between Ilves and Savisaar is their approach to Estonia's relationship with Russia. Savisaar has been accused several times for working on behalf of Russian interests, while Ilves has sometimes recklessly suggested ignoring Russia's demands.

« Top

BANKING

Bank of Estonia forecasts economic growth in 2007


The Bank of Estonia released a new batch of forecasts, predicting that this year's economic growth rate would amount to 8.1 per cent and 7.6 per cent in 2007. 1.4 and 0.7 percentage points lowered the bank's previous forecasts, respectively, New Europe reported.
In the bank's opinion, consumer prices will increase 3.6 per cent this year and 3.0 per cent in year 2007. These growth forecasts of the central bank are slightly lower than those by the finance ministry.

« Top

TOURISM

Radisson SAS hotel makes up half of sales


In central Tallinn, the Radisson SAS hotel earned an operating profit of 98 million Estonian crowns (6.26m Euro) on sales of 170m crowns in 2005. The average occupancy rate of the hotel's 280 rooms during the year was 74 per cent. The number of visitors was 110,400, 3,000 more that in the preceding year, New Europe reported.
Sam Holmberg, the Director General said the result of 2005 was as expected. At the same time, he forecast that significant changes would take place on the hotel market of the Estonian capital in the coming couple of years. The number of hotel rooms in Tallinn is about to grow by at least 30 per cent by the start of 2008 from the roughly 5,300 hotel rooms now. "Two years from now there will be over 7,000 hotel rooms in the Estonian capital and development will continue after that, albeit at a little bit slower pace," Holmberg told journalists. The extra capacities are estimated to bring the average occupancy rate down to below 50 per cent from the present 60 per cent. In the near future hotels on the market will be expected to make efforts to better position themselves. Holdmberg further stated that "Everyone will be trying to find his place, the standards and images of hotels will change. There will be a lot of repositioning" Radisson SAS is part of the international Rezidor SAS Hospitality chain that is active in 49 countries.

« Top

« Back

 


 
Published by 
Newnations (a not-for-profit company)
PO Box 12 Monmouth 
United Kingdom NP25 3UW 
Fax: UK +44 (0)1600 890774
enquiries@newnations.com